This is what PayTM, MobiKwik, PayU Money and Oxigen are doing to fight mobile transactions frauds

As online transaction fraud is becoming a growing concern among mobile-wallet companies, they are evolving themselves to safeguard users from the threat.

Mobile-wallet firms such as MobiKwik, Paytm, PayU money and Oxigen have come up with different technologies to make the system foolproof and even filing for patents.

For instance, MobiKwik has come up with card and device ID checks, Paytm is experimenting with facial recognition technology and Oxigen Wallet has launched mobile virtual cards.

Reportedly, bill payments, tickets, mobile recharges, etc account for about 95% of digital wallet frauds.

"India offers a very unique challenge because consumers are gullible. So, we have to find out ways to run the system even more than differently than the rest of the world," Vijay Shekhar Sharma, Cofounder of Paytm, told ET.

A Mumbai-based digital payments company TranServ said that between September and October, mobile wallet fraud peaked to 3-3.5% of value, 15-20 times the levels in ecommerce.

According to Counterpoint Technology Market Research, the mobile wallet segment was worth $3.2 billion in 2015, with an average transaction value of close to $2.