“Digital Fraud and Consumer Trust in Digital Payment Systems”

Abstract

Digital payment systems have become a part of everyday life especially for young people. While digital payment systems give convenience the rising use of UPI, mobile banking and other online payment services has also raised concerns about fraud.This is why this study is done for looking at how experiences with fraud and perceptions of digital fraud relate to consumer trust in digital payment systems. All the primary data were gathered by means of a questionnaire sent to 41 respondents. One response listed the occupation as "robbery”; this was seen as a data entry error. And was removed, leaving 40 valid responses. The cleaned data were examined using frequency and percentage tables and Spearman correlation analysis.The findings show that most respondents use payments regularly. And are aware of fraud risks associated with digital payments. The results also show that perceived security has a statistically significant relationship with overall trust whereas the negative effect of digital fraud on confidence has a statistically significant negative relationship with trust.Thus the study suggests that stronger security, effective grievance handling, recovery of fraudulent transactions and better user awareness can increase confidence in digital payment systems. The findings are seen as associations, within this sample. Are not taken as proof of causation.