Increase in card and internet banking frauds


The average banking fraud value involving cards and internet banking was set to increase by 8.5 per cent to Rs 34,802 in 2021-22 (FY 2022). Even though the number of such cases declined on an annual basis. According to data released in the Lok Sabha on Monday, there were 65,045 such cases of fraud in FY22. The total value involved was Rs 226.4 crore.

The figures include fraud at commercial banks for ATMs and other types of cards. Also included are transactions under the category ‘Cards, Internet-ATMs, Debit Cards, Credit Cards and Internet Banking’.

In comparison, there were 70,655 such cases in 2020-21 (FY 2021), according to Lok Sabha data. The total amount was also Rs 226.6 crore, which means it remained almost the same. This increased the average amount. ATM fraud cases seem to be more concentrated in some states than others.

The data found that just five states account for nearly three-quarters of all card fraud cases in the country. The number of such cases is continuously increasing in Maharashtra. There, in the financial year 2022, Rs 74.62 crore were found in 26,085 cases. This means there was an average fraud of Rs 28,606 per day.

Of the total fraud cases in the country, 40 per cent are related to this state. In comparison, Delhi registered 8,075 cases involving Rs 24.35 crore. It was 12.4 per cent of such fraud cases.

In terms of banks, Kotak Mahindra had 33,296 cases in FY2022, almost half of all such frauds. However, the FY21 share is below 65 per cent i.e. 70,655 cases. In terms of value, there was a fraud of Rs 57.72 crore in FY 2022.

Earlier in the financial year 2021, it was Rs 64.23 crore. Axis Bank stood second in FY22 with Rs 25.07 crore or 10 per cent of the total i.e. 6,124 cases in terms of value.

The two banks are followed by ICICI Bank (5,002 cases involving Rs 34.39 crore), HDFC Bank (3,866 cases involving Rs 10.61 crore) and American Express Banking Corporation (2,258 cases involving Rs 5.83 crore), according to FY22 data.

ICICI Bank sees an increase in both the number of transactions and the value of frauds in FY22 as compared to 1,390 cases involving Rs 32.67 crore in FY2021.

The number of frauds at the country’s largest bank, State Bank of India, fell 40 per cent to 1,187, but the value remained the same at around Rs 22.62 crore for FY22.


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