Razorpay partners MHA and I4C to boost digital payments security

Fintech firm Razorpay has announced its support for the Ministry of Home Affairs (MHA) and the Indian Cyber Crime Coordination Centre (I4C).

 

India contributes to 46 per cent of the world's digital payment volume. Razorpay stated that this makes it essential for the company to play a role in securing the country's digital payments landscape, ensuring safe and reliable transactions. This collaboration aims to empower businesses and end customers with critical knowledge to protect themselves while promoting widespread awareness about cybersecurity across India.

 

“As our digital economy rapidly expands, India is emerging as a global leader in retail transactions and digital payments. With this leadership comes a responsibility to ensure safe and secure digital payment experiences for a young, new-to-banking population,” said Arif Khan, Chief In¯¸novation Officer of Razorpay. “This collaboration with the Ministry of Home Affairs and I4C will help chart a decisive path towards combating rising cyber threats. As the fastest-growing payment aggregator in the country, Razorpay takes the responsibility to lead by implementing cutting-edge security frameworks, strict access controls, and 24/7 monitoring to safeguard the digital payments ecosystem. Together, we are building a stronger, more secure foundation for the industry, enabling businesses to grow confidently in the digital era.”

 

 

Recent data from the National Cybercrime Reporting Portal reveals a sharp increase in digital fraud incidents across India, with over 7,000 complaints reported daily between January and April 2024. Alarmingly, 85 per cent of these complaints involved financial fraud, underscoring the growing vulnerability of online transactions. Victims lost more than $21.2 million to cybercrimes during this period alone. This surge highlights the urgent need for enhanced cybersecurity measures and awareness. Razorpay stated that its collaboration with the Ministry of Home Affairs and I4C represents a critical step in this direction.

 

"Cybersecurity is the cornerstone of a nation’s development, and in a country like India, which now accounts for 46 per cent of the world's digital payment volume, its importance cannot be overstated. As digital accounts and transactions grow, so does the responsibility to safeguard them from fraud and cyber threats,” said Nishant Kumar, Director, Indian Cybercrime Coordination Centre, Ministry of Home Affairs. “This partnership with Razorpay is a step towards strengthening our digital economy by combining the technological approach of Razorpay with the strategic initiatives of I4C. We aim to empower businesses and consumers with the knowledge and tools to navigate and thrive securely in the digital era."

 

Govt joins hands with fintech firms

 

This is not the first instance where the government has collaborated with a financial technology company. The government is reportedly working with fintech companies to create a homegrown transaction monitoring and anti-money laundering (AML) system designed to tackle financial fraud in India. The new system aims to address issues like mule accounts and expedite the recovery of defrauded funds, while also geotagging digital transactions. Additionally, it will establish a 'suspicious registry' to track banking correspondents involved in financial fraud.

 

Globally, UK and US sanctions data has been incorporated into a newly launched AI-driven fraud detection tool being used by UK authorities to identify criminals. This year, the UK government revealed that its Single Network Analytics Platform (SNAP)—introduced by the Public Sector Fraud Authority (PSFA) in collaboration with fintech firm Quantexa—has been enhanced with thousands of additional sanctions and debarment records. This upgrade will assist in identifying suspicious networks, activities, and users requiring further investigation for organised crime and sanctions evasion.

 

In India, Razorpay will also lead an extensive awareness campaign under its collaboration with the government, aimed at educating businesses and consumers on critical cybersecurity issues.

 

Razorpay’s cybersecurity initiatives

 

Razorpay has connected with over 1,600 cybercrime stations across 25 states and union territories, enabling seamless communication channels to strengthen collaboration in combating cybercrime. The company has conducted specialised workshops showcasing its capabilities and sharing insights into fraud prevention. These sessions have involved collaboration with key organisations such as the Enforcement Directorate, CID, Cybercrime HQ, and police forces across various cities.

 

Razorpay’s awareness campaigns will provide valuable insights on safeguarding sensitive data, identifying cyber threats, detecting phishing scams, and adopting secure payment practices. These efforts also include incident response planning, secure mobile payments, spotting fake payment apps, understanding the dangers of public Wi-Fi for payment transactions, and essential steps for setting up a secure online payment system.

 

Earlier this year, Razorpay enhanced its cybersecurity measures by launching its Authentication Control Server (ACS). This server includes a Fraud Risk Management (FRM) system, which assesses the risk of each transaction in real-time based on factors like transaction amount, user behaviour, and device details, mitigating potential risks. For low-risk transactions, Razorpay ACS ensures a smooth experience while applying stricter security checks for higher-risk activities.

 

As digital transactions continue to rise, Razorpay stated that its proactive risk mitigation strategies will protect both businesses and consumers, paving the way for a safer and more secure future for online payments in India.