Cyber Fraud in Banking Transactions in India: A Surge

• India’s online transactions have seen an unprecedented increase in cyber frauds, with ₹3,207 crore lost due to 5,82,000 cases between FY2020 and FY2024.

• The number of cyber fraud incidents increased from 75,800 cases in FY 2023 to 2,92,800 cases in FY2024.

• The amount of money lost rose from ₹421.4 crore in FY2023 to ₹2,054.6 crore FY2024.

• Maharashtra accounts for over one-fourth of the amount lost due to cyber fraud in India, largely due to Mumbai’s high volume of online transactions.

• The RBI Governor, Shaktikanta Das, reported that digital transactions have grown 90-fold in the last 12 years.

• The promotion of digital transactions was influenced by demonetisation in 2016 and the COVID-19 lockdown.

• Private sector banks collectively account for a much higher value and number of cases of fraud than public sector banks.

• The top five banks that suffered the highest share of fraud amounts are Kotak Mahindra Bank, Axis Bank, State Bank of India, HDFC Bank, and ICICI Bank.