Even though digitalization is increasing rapidly in India, but along with it the incidents of online frauds are also increasing rapidly. It was told in the Lok Sabha on 13 March 2023 that 65,045 cases of online fraud were registered in FY 2022, in which Rs 226.4 crore of customers were involved, while in FY 2021, 70,655 cases of fraud were registered and Rs 226.6 crore were involved in them. These cases of online fraud included transactions involving debit cards, credit cards, internet banking etc. These figures also show that the number of online frauds decreased in FY 2022 as compared to FY 2021, but the amount involved remained almost the same.
The analysis also revealed that ATM fraud cases are concentrated in a few states. In 5 states of the country, three fourth frauds are being done through cards. Maharashtra is on top in this matter. Here, 26,085 fraud cases were registered in FY 2022, involving an amount of Rs 74.62 crore, which means an average online fraud of Rs 28,606 was done every day in this state. 40 percent of the total fraud incidents in the country have happened only in Maharashtra. During this period, 8,075 cases involving Rs 24.35 crore were registered in Delhi, which was 12.4 per cent of the total frauds registered. This data also shows that even though Maharashtra is a developed state, its people are less financially aware, otherwise there would not have been so many incidents of frauds.
If we analyse the online fraud cases bank wise, 33,296 online fraud cases were registered in Kotak Mahindra Bank in FY2022, which was almost half of the total fraud cases. However, in FY 2021, 65 per cent of the cases were reported in this bank, amounting to Rs 57.72 crore, while during FY 2021, fraud incidents of Rs 64.23 crore were reported in this bank. Axis Bank had a fraud of Rs 25.07 crore in FY2022, which was 10 per cent of the total fraud incidents. 6,124 cases of online fraud were reported in this bank during this period.
During FY22, ICICI Bank reported 5,002 cases involving Rs 34.39 crore, while HDFC Bank reported 3,866 cases involving Rs 10.61 crore. Whereas American Express Banking Corporation registered 2,258 cases involving Rs 5.83 crore.
ICICI Bank reported 1,390 fraud cases involving Rs 32.67 crore in FY 2021 and both amount and fraud cases increased in this bank in FY 2022. It is noteworthy that in the financial year 2021, the number of fraud incidents in the country’s largest bank, State Bank of India, registered a decline of 40 percent and during the financial year 2022 only frauds of Rs 22.62 crore were committed in this bank. These figures show that public sector banks have achieved significant success in reducing online frauds as compared to private banks.
In March 2023, Mr. Prafulla P. Sarda, a businessman from Pune, had sought information from the Reserve Bank of India in RTI about the incidents of online fraud in Indian banks, in response to which the central bank informed that from January 2014 to December 2022 in Indian banks A total of 1,40,736 cases of ATM and debit card frauds involving an amount of Rs 507.12 crore were reported, while 1,37,237 cases of credit card fraud involving an amount of Rs 514.90 crore were reported during the period. Whereas the number of frauds committed through internet banking was 61561 and Rs 354.78 crore was involved in these.
It is noteworthy that in the financial year 2014-2015, the number of ATM and debit card frauds was just 71, which increased to 36,978 in the financial year 2019-2020. Similarly, the amount of ATM and debit card fraud in FY 2014-2015 was Rs 1.51 crore, which increased to Rs 102.13 crore in FY 2019-20. However, in the financial year 2022-23, the number of ATM and debit card frauds came down to 7,395 and the amount involved also came down to Rs 29.21 crore.
During the financial year 2014-15, only 119 cases of credit card fraud were registered, amounting to Rs 3.41 crore. In the financial year 2019-20, the number of frauds increased to 26,580 and the amount stuck was also Rs 74.69 crore, but in the financial year 2022-23, the number of credit card frauds came down to 20,017. However, the ‘stuck amount’ in the case increased to Rs 93.89 crore.
The number of internet bank frauds was 42 in the financial year 2014-15 and the amount involved was Rs 2.20 crore, but in the financial year 2020-21 the number of frauds increased to 20,476 and the amount involved also increased to Rs 86.66 crore. However, in the financial year 2022-23, the fraud cases came down to 8,121 and the amount stuck also came down to Rs 69.96 crore.
It is clear from the data, despite all the efforts being made by the banks and the Reserve Bank of India, credit cards remain the easiest medium to commit frauds. Along with this, cyber fraudsters are also succeeding in committing fraud through internet banking, ATM, and debit cards.
Online fraud can be reduced only when people are made financially aware. For this, banks, government, and banking experts should be made aware to all through newspapers, television, cinema, and radio, as well as seminars/workshops should be organized regularly in schools, colleges, offices, villages etc.
It is clear from the above, caution is the only protection. Do not be greedy. This is the root of all problems. Do not come into psychological pressure. Do not hesitate to seek the help of the police in case of threats. Be fearless, only then online fraud can be avoided.
Satish Singh, Mumbai Based Senior Columnist, views are personal
