SECURITY AND FRAUD PREVENTION IN ELECTRONIC PAYMENT SYSTEMS: UNDERSTANDING USER BEHAVIOUR

Abstract

As economies worldwide embrace digital transformation, Electronic Payment Systems (EPS) have become central to financial inclusion, convenience, and the transition toward a cashless society. However, the rapid expansion of EPS also brings growing concerns over security vulnerabilities and sophisticated fraud tactics. This review explores emerging technologies and threats in EPS, analyzing their implications for fraud detection, consumer protection, and regulatory compliance. Drawing from global and Indian contexts, the study reviews key themes including financial inclusion, digital literacy, payment evolution, cashless economy, fraud detection, and the role of security technologies such as biometrics, AI-based monitoring, and tokenization. A conceptual framework is proposed that emphasizes regulatory compliance as the foundation for building a secure and inclusive payment infrastructure. By synthesizing insights across technology, policy, and user behavior, this review contributes a holistic understanding of the EPS landscape and offers direction for future innovation and governance. The findings have practical relevance for policymakers, fintech developers, financial institutions, and educators promoting secure digital financial ecosystems.