CASHLESS TRANSACTIONS AND FRAUD DETECTION IN MAHARASHTRA

Abstract

The transition to cashless transactions in Maharashtra has been accelerated by government initiatives such as Digital India and the aftermath of demonetization, but the rise in digital payments has also brought about significant concerns regarding fraud detection and consumer trust. This study explores the effectiveness of fraud detection systems in Maharashtra’s digital payment ecosystem, identifying key fraud types such as card fraud, phishing, and identity theft. Through a combination of quantitative surveys and qualitative interviews with cybersecurity experts, financial institutions, and policymakers, this paper investigates the challenges in fraud detection, including consumer awareness, technical limitations, and regulatory gaps. The findings reveal a critical need for enhanced fraud detection technologies, including AI-driven systems, real-time monitoring, and biometric verification, to reduce fraud incidents and increase consumer trust. Additionally, recommendations for improving public awareness, regulatory frameworks, and consumer confidence in digital payment systems are proposed. This paper emphasizes the importance of collaboration among stakeholders to ensure the long-term success and security of Maharashtra’s digital payment ecosystem.