| ➡️ Get instant news updates on Whatsapp. Click here to join our Whatsapp Group. |
The Enforcement Directorate (ED) has revealed that over half of the assets it has attached so far are linked to bank-related irregularities. The agency also noted a decline in bank fraud cases, which had peaked in 2018-19. This decline is largely attributed to ED’s proactive approach and thorough investigations.
ED’s Efforts in Tackling Bank Fraud
In its annual report released last week, the ED highlighted that ₹80,000 crore worth of assets, out of ₹1.54 lakh crore attached by the agency, were linked to bank fraud cases. The ED’s efforts have focused on investigating significant bank fraud cases and ensuring that defrauded banks or rightful claimants are compensated. By March 2025, the ED had investigated more than 1,228 money-laundering cases related to bank fraud, attached assets worth over ₹80,000 crore, and helped return more than ₹23,258 crore to banks. The report emphasized that ED’s proactive approach has contributed to the decline in the Non-Performing Assets (NPA) ratio in Indian banks.
Decline in Money Laundering Cases
The report also showed a significant decline in the number of money-laundering cases linked to bank fraud. These cases had reached a high in 2018-19 with 249 cases, but the number has since dropped significantly. In 2021-22, there were 232 cases, in 2022-23 there were 202, and in 2023-24, only 115 cases were recorded. By 2024-25, the number of cases further decreased to 66.
The ED attributes this drop to its strong enforcement of the Prevention of Money Laundering Act (PMLA). This act has been effective in curbing asset misappropriation, with strict bail conditions and a strong deterrent effect on potential frauds. As a result, the agency has made it increasingly difficult for fraudsters to get away with their activities, reducing the likelihood of new loans turning into NPAs.
Cyber and Cryptocurrency Fraud on the Rise
While the decline in bank fraud is a positive outcome, the ED’s report also highlighted a concerning rise in cyber and cryptocurrency-related fraud. In recent years, there has been a sharp increase in cases involving digital currencies and online transactions. In 2024-25, the ED registered 122 cases related to cyber and cryptocurrency frauds, with proceeds of crime worth ₹20,462 crore. The agency has attached properties worth ₹5,964 crore in these cases.
The rapid growth of digital currencies and online transactions has opened new avenues for crimes such as hacking, ransomware, and cryptocurrency scams. These threats are evolving quickly due to technological advancements and the anonymity provided by digital platforms. As a result, the ED faces new challenges in keeping pace with these rising cybercrime risks.
Conclusion
While the ED’s strict actions against bank fraud have led to a significant reduction in such cases, the increasing prevalence of cyber and cryptocurrency-related fraud presents new challenges for the agency. The rise in digital crimes highlights the need for continuous vigilance and adaptive strategies to tackle emerging financial threats.
