Cyber Warning for Parents as Children’s Digital Pocket Money Becomes Target for Online Fraud
UPI
Cyber experts warn that rising use of UPI-based digital pocket money, children are increasingly becoming targets of online fraud, posing financial risks for families without proper security measures.
Pune, April 11, 2026 As digital payments become more integrated into daily life, a new cyber risk is emerging for families, particularly those allowing children to access “digital pocket money” through UPI-based systems. Experts have raised concerns that such convenience-driven features, while promoting early financial literacy, may expose households to online fraud if adequate safeguards are not in place.
With the growing use of smartphones among school-going children, many parents are enabling payment access through features like delegated UPI systems. These allow children to make transactions using their parents’ accounts, even without having independent bank accounts. While the system is designed for ease of use, cyber security professionals caution that it can be misused by fraudsters targeting minors. Online gaming platforms have emerged as a key entry point for such activities. Fraudsters often build trust with children through games and social interactions, eventually sending payment requests disguised as in-game purchases or rewards. In several instances, children unknowingly forward these requests to parents, who may approve them without verifying the source.
Experts highlight that the risk is higher in cases where full delegation is enabled, allowing transactions without parental approval within a set limit. They strongly recommend using controlled access methods that require authentication for every transaction. Authorities also emphasize that legal responsibility lies with the primary account holder, typically the parent, even if the transaction was initiated by the child. This makes awareness and vigilance critical in preventing financial losses.
To mitigate risks, parents are advised to monitor transactions closely, enable biometric security features, and ensure that unknown applications or remote access tools are not installed on children’s devices. As digital adoption continues to rise, experts stress that balancing convenience with security will be essential to protect families from evolving cyber threats.
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