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@article{206913,
        author = {Ms.P.Komaleka and Dr.V.Sivakumar},
        title = {FRAUD, TRUST, AND REGULATION: EXAMINING SECURITY CONCERNS IN INDIA'S DIGITAL PAYMENT ECOSYSTEM},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {13},
        number = {2},
        pages = {3313-3319},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=206913},
        abstract = {India's digital payment ecosystem has expanded at unprecedented speed, with UPI transaction volumes surpassing 14 billion monthly transactions in 2026, yet this growth has been accompanied by a parallel rise in payment fraud incidents that threaten consumer trust and regulatory confidence. This study examines the structural relationships between fraud exposure, perceived security risk, regulatory awareness and platform security features on consumer trust, and the consequent effect on continued usage intention, among 450 digital payment users across India. Anchored in the Trust-Risk Framework, Protection Motivation Theory and Regulatory Theory, the study employs Structural Equation Modelling (SEM) via SmartPLS 4.0 and multi-group analysis (MGA) to test payment mode (UPI, Cards, Wallets) as a moderator. Perceived Security Risk emerges as the strongest (negative) predictor of Consumer Trust (b = -0.44, p < 0.001), followed by Fraud Incidence Experience (b = -0.39, also negative direction conceptually but coded positively as exposure intensity), Regulatory Awareness (b = 0.33) and Platform Security Features (b = 0.27). Consumer Trust strongly predicts Continued Usage Intention (b = 0.58, p < 0.001), with the model explaining 67% of variance (R-squared = 0.67, SRMR = 0.059, NFI = 0.927). Perceived Security Risk retains a significant negative direct effect on usage intention (b = -0.14, p < 0.05), confirming partial mediation. MGA reveals that the Security Risk-to-Trust path is significantly stronger for UPI users than card users (delta-b = 0.16, p = .008), while the Security Features-to-Trust path is significantly stronger for UPI than wallet users (delta-b = 0.12, p = .041). OTP fraud (38.7%) and phishing/vishing (34.2%) are the most prevalent fraud types reported. These findings provide causally grounded evidence for the Reserve Bank of India's ongoing digital payment security regulatory framework and platform-level fraud prevention investment prioritisation.},
        keywords = {Consumer Trust, Digital Payments, Fraud, Regulation, Security Risk, UPI.},
        month = {July},
        }