
In the financial year 2024 (FY24), there was a significant increase in fraud cases reported in Indian banks compared to the previous year. The number of fraud cases rose to 36,075, a nearly 300% increase from the 9,046 cases reported in FY22. However, the amount of money involved in these frauds decreased by 46.7% to Rs 13,930 crore.
According to the Reserve Bank of India (RBI), most of the frauds occurred in the digital payments sector, such as card payments and internet transactions. However, when it comes to the value of the frauds, the highest-value cases were related to loans. Public sector banks contributed the most to the total value of the frauds.
The RBI’s analysis revealed that private sector banks reported the highest number of fraud cases in the past three years. On the other hand, public sector banks were responsible for the majority of the funds involved in the frauds.
The number of fraud cases related to card and internet payments increased significantly from 3,596 in FY22 to 29,082 in FY24. In terms of value, the amount involved in these cases increased from Rs 155 crore in FY22 to Rs 1,457 crore.
During a study conducted by the RBI on fraud cases reported in FY23 and FY24, it was observed that there was a significant time lag between the occurrence of a fraud and its detection. The amount of money involved in frauds that occurred in previous financial years accounted for 94.0% of the frauds reported in FY23 and 89% of the frauds reported in FY24.