| Pub. Date | : Sept' 2020 |
|---|---|
| Product Name | : The IUP Journal of Case Folio |
| Product Type | : Article |
| Product Code | : IJCF40920 |
| Author Name | : Koti Vinod Babu, Namratha V Prasad |
| Availability | : YES |
| Subject/Domain | : Management |
| Download Format | : PDF Format |
| No. of Pages | : 20 |
The case discusses the technologies and tools employed by Paytm, one of India's leading e-commerce and digital wallet companies. The case starts out by going into the reasons for the vulnerability of a digital payments company like Paytm to fraud. Though there are cyber laws in India to check fraud in digital payment systems, companies such as Paytm continued to be easy targets of fraudsters. The case then provides an overview of the kind of frauds encountered by the customers of Paytm, the loss borne by them and the various measures taken by Paytm to counter the frauds. Later, the case describes in detail the different tools and technologies like Data Encryption, Data Intrusion Detection Systems, and Artificial Intelligence that were adopted by Paytm to combat fraud. Vijay Shekhar Sharma (Sharma), Founder and CEO of Paytm, was confident that the security measures deployed by Paytm would be effective in combating cyber fraud. The question is, can Paytm maintain the same level of security in future considering the ever-shifting fraud landscape?
In January 2020, Paytm Payments Bank (PPB), owned by one of the leading Indian e-commerce payment system and digital wallet2 companies, Paytm, submitted to the authorities 3,500 phone numbers, which the company suspected of being responsible for online frauds (SMS3 and call scams). The numbers were submitted to the Telecom Regulatory Authority of India (TRAI),4 the Ministry of Home Affairs (MHA),5 and the Indian Computer Emergency Response Team (CERT-in).6 PPB also filed a First Information Report (FIR)7 with the Indian police's cyber wing in Noida against the holders of the 3,500 phone numbers to stop the scams. This move was part of PPB's efforts to fight the growing threat of online fraud by cyber criminals, which resulted in its customers losing money.