MUMBAI: In perhaps a first of its kind service, Paytm is offering customers protection against cyber fraud through an insurance policy available for fraudulent mobile transactions up to Rs 10,000 for a premium of Rs 30.
The cover ‘Paytm Payment Protect’ is provided through a group insurance policy issued by HDFC Ergo. The company said that the plan is being offered to increase the trust in digital payments, which will push up adoption.
The insurance cover protects transactions made through UPI across all apps and wallets. The insurance coverage has been obtained by One97 Communications, which operates under the Paytm brand. “We are offering an insurance cover with convenient claims with a vision to safeguard users and fight cybercrimes,” said Bhavesh Gupta, CEO of lending and head of payments at Paytm.
According to Parthanil Ghosh, president of retail business at HDFC Ergo, the exponential increase in the use of digital payments during the pandemic has made more people susceptible to cyber fraud.
While UPI has all the digital safeguards in place, most UPI-related frauds are undertaken by confidence tricksters who get their victims to authorise a transaction by passing collect requests as payments. There are also many fraudsters collecting payments by pretending to be merchants.
