According to data released by the Reserve Bank of India (RBI), banks reported 36,066 frauds in fiscal 2024, more than double the 13,537 in fiscal 2023. However, the report said the amount involved in the number of frauds in FY24 was at a 10-year low, i.e. Rs 13,175 crore.
According to the data, financiers have reported a total of 18,461 frauds worth Rs 21,367 crore so far in the first half of FY25.
“Based on fraud incidence data, Internet and card fraud will account for 44.7% of total fraud by value and 85.3% by number from 2023 to 2024,” the report said. .
Although private lenders reported the highest number of frauds, PSBs suffered the most in terms of face value.
The regulator also imposed further penalties on lenders for regulatory violations in the last financial year. There were 16 fines levied against public sector banks, amounting to Rs 23.7 million, significantly higher than Rs 3.6 billion in FY23. A total of 12 fines were imposed on private banks in FY24, amounting to Rs 2,490 crore, higher than Rs 12,200 crore in the previous financial year.
“While much of the digital fraud stems from social engineering attacks against customers, the use of mule bank accounts to perpetrate such fraud is also rapidly increasing. Not only will they be exposed to risk and operational risks, but they will also be exposed to reputational risks.Banks will therefore need to strengthen their customer onboarding and transaction monitoring systems to monitor fraud, the RBI said. said.
“This also requires effective coordination with law enforcement agencies so that concerns arising at an institutional level can be detected and contained early on. “We are strengthening our efforts to ensure the sharing of best practices for managing mule accounts and preventing digital fraud.”
