According to a report by the Times of India, online financial fraud cases in India amounting to ₹1 lakh or more each have reached a total value of ₹1,457 crore. Additionally, there are further cases worth ₹653 crore involving amounts below ₹1 lakh.
Daily Reporting of Online Financial Frauds
The Times of India also reported that nearly 800 online financial frauds are reported in India every day. The Reserve Bank of India (RBI) disclosed that in the financial year 2023-24, they had reported 29,082 cases of card and digital payment frauds with amounts above ₹1 lakh. However, when considering all individual cases, including those below ₹1 lakh, the total number of cases for the year amounts to about 2.9 lakh, which is approximately 800 cases per day.
Breakdown of Fraud Cases
The RBI revealed the number of cases below ₹1 lakh in response to an RTI query, as reported by the Times of India. It should be noted that the accuracy of this information could not be independently verified by HT.
The cases involving amounts above ₹1 lakh have a cumulative value of ₹1,457 crore, as per the RBI report. In addition, the cases involving amounts below ₹1 lakh contribute an additional ₹653 crore to the total value, according to the Times of India.
Increase in Cyber Frauds
According to a report by the standing committee on communications and information technology (2023-24), cyber frauds amounting to ₹5,574 crore were reported in the first half of the financial year 2022-23 on the National Cybercrime Reporting Portal. This figure is significantly higher than the ₹2,296 crore reported in 2021-22, as highlighted by Business Line.
Common Types of Fraud
The article mentions several common types of fraud that occur in online financial transactions. These include malware or system breaches resulting in fund theft, phishing scams where victims are coerced into revealing their credentials or performing financial transactions, and fraudulent e-commerce sites or schemes where victims willingly transfer funds.
It is important to note that voluntarily transferring funds is not recognized as banking fraud because it does not involve a breach of the bank’s systems, as stated in the report.
Zero Customer Liability Concept
To protect customers from unauthorized transactions, the RBI introduced the concept of zero customer liability in 2017. Under this concept, customers are legally protected only if they do not share their credentials or if they promptly report any account compromises. However, it is crucial to understand that this protection does not apply when customers voluntarily transfer funds.
In summary, while India has seen a significant increase in online financial fraud cases, the RBI has implemented measures to safeguard customers, though these measures may not cover cases where funds are transferred voluntarily.