Growth in banking frauds in India is worrying according to the latest report findings. The data from the Reserve Bank of India (RBI) reveals that banks in India have faced significant challenges with fraud over the past decade, totalling 63.59 Billion Dollars. This staggering amount represents the total value of fraudulent activities reported by both private and public sector banks between the financial years 2013-14 and 2022-23.
This report was compiled by Moneycontrol, A leading financial portal in India through an RTI, that was filed to the RBI. RTI stands for Right to Information. Moneycontrol requested these numbers asking for a record of the number of bank frauds, that have come to pass in the past 10 years.
The magnitude of these frauds underscores the importance of effective risk management and fraud prevention measures within the banking sector.
Maharashtra Tops the List
Maharashtra emerged as the state with the highest number of reported fraud cases, followed by Delhi, Haryana, Tamil Nadu, and Uttar Pradesh. Karnataka, Gujarat, Telangana, West Bengal, and Rajasthan also reported a significant number of fraud cases during this period. These findings highlight the widespread nature of fraudulent activities across different regions of the country.
Worrying Increase in Banking Frauds in India
One of the key areas of concern is the growing number of fraud cases related to advances, as well as those involving cards and digital or internet banking.
- In the fiscal year 2022-23, banks reported a significant number of fraud cases involving cards and Internet banking, totalling 13,530 cases. Out of these, 6,659 cases were related to cards and internet banking. Additionally, there were 4,109 fraud cases related to advances.
- In the previous fiscal year, 2021-22, there were a total of 9,097 fraud cases, with 3,833 related to advances and 3,596 related to cards and internet banking.
- Similarly, in the fiscal year 2020-21, there were 7,338 fraud cases, with 3,476 related to advances and 2,545 related to cards and internet banking.
In response to the rising banking frauds in India incidents, banks are increasingly focusing on assessing credit risks to better understand and mitigate potential fraud risks. This includes adopting advanced technologies such as artificial intelligence (AI) and machine learning (ML) to enhance their fraud detection and prevention capabilities.
To address these challenges, the RBI has taken proactive steps to educate the public about online fraud risks and promote safer banking practices. Additionally, banks are investing in new technologies and tools to strengthen their fraud prevention measures and enhance the overall security of their banking services.
