Socio-demographic and Behavioral Determinants of UPI Fraud Vulnerability: A Descriptive Study from Shimla District, Himachal Pradesh

Abstract

The rapid adoption of Unified Payments Interface (UPI) in India has transformed digital financial transactions, offering convenience and speed. However, this growth has exposed users to cybersecurity risks, with certain populations, especially digitally inexperienced or socioeconomically vulnerable individuals, being more susceptible to cyber fraud. Behavioral and cognitive factors, including overconfidence, impulsivity, and susceptibility to social engineering tactics, play a crucial role in shaping victimization patterns. This study aims to examine UPI usage patterns, identify cyber risk factors, and explore the behavioral and demographic determinants of vulnerability. Specific objectives include assessing user awareness of cyber threats, mapping the types of cyber fraud experienced, and evaluating the relationship between behavioral traits, demographic characteristics, and fraud victimization. A cross-sectional survey was conducted in Shimla district, Himachal Pradesh, targeting 183 UPI users across urban and rural communities. Data were collected via structured questionnaires capturing demographics, transaction behavior, cyber fraud experiences, and awareness of preventive measures. Descriptive statistics and cross-tabulations were used to analyze patterns and associations. Findings reveal that young adults (18–25 years) and middle-aged users (41–60 years), lower-educated and lower-income groups, and rural users exhibited higher vulnerability to cyber fraud. Google Pay was the most commonly used platform, with transactions primarily for bill payments and shopping. Phishing, social engineering, and fake QR code scams were the most reported fraud types. Confidence in digital transactions influenced victimization; both overconfident and underconfident users faced higher risks. The study underscores the interplay of cyber risk exposure, behavioral biases, and socio-demographic factors in shaping UPI fraud vulnerability. It highlights the urgent need for digital literacy programs, targeted awareness campaigns, and user centric cyber security interventions to reduce victimization and promote safer digital financial behavior.