Online fraud cases surged by 708% over the past two years: RBI report
The RBI's annual report shows a 708% rise in online fraud cases over two years, reaching 29,082 cases, yet the total fraud amount dropped to ₹13,930 crore in FY24 from ₹45,358 crore in FY22. Public sector banks, mainly from loans, contributed 75% of the total fraud amount, while private banks reported the most fraud cases, highlighting regulatory needs. The report identifies a significant delay in fraud detection, posing a key challenge in managing increasing fraud trends
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Jun 4, 2024
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According to the RBI's annual report, fraud cases in the banking sector surged nearly 300% to 36,075 in FY24. Despite this increase, the amount involved in fraud dropped to ₹13,930 crore in FY24 from ₹45,358 crore in FY22. Private sector banks accounted for 67% of the fraud cases, while public sector banks reported 75% of the total fraud amount. Private lenders reported 22.8% of the total fraud amount in FY24.
Online fraud cases on the rise
The RBI's annual report reveals a 708% surge in online fraud cases over the past two years, reaching 29,082 cases. The amount of money lost to online fraud rose by 145% to ₹1,457 crore during the same period. This significant increase underscores the need for enhanced regulation by the central bank.
Max fraud amount in the loan portfolio
Despite the high number of internet and card fraud cases, the majority of the fraud amount in FY24 came from loan portfolios, primarily affecting public sector banks. Of the total ₹13,930 crore fraud amount reported, 84% was related to advances or loans.
Time lag in fraud detection
The central bank identified a significant time lag in detecting fraud cases as a major obstacle in addressing the rising number of fraud incidents. An analysis of frauds reported in FY23 and FY24 revealed a considerable gap between these frauds' occurrence and detection dates.
Private lenders reported a maximum no. of fraud cases; public lenders contributed the maximum fraud amount
Private sector banks reported the highest number of fraud cases, while public sector banks contributed the most to the total fraud amount. Most fraud cases occurred in digital payments (card/internet), while the highest value of fraud was found in the loan portfolio (advances category), as stated in the Annual Report for 2023-24.
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