Internet banking fraud in India rises 4 times in 1 year

The number of frauds related to Internet banking and credit and debit cards in India has increased four fold in the last one year, according to data reported by the banks to the Reserve Bank of India.

Banks have already reported 10,220 incidents under the RBI’s Fraud Monitoring System involving an amount of Rs 111.86 cr in the last three months (fourth quarter) of 2017 so far.

The average amount involved is Rs 1.09 lakhs.

During the same period last year, banks had reported a total of 4,147 incidents involving only 30.04 cr, one-fourth of this year’s number. The average amount involved was Rs 72,442.

A similar increase can be seen in the previous (third) quarter as well.

For the third quarter (July-September) of 2017, the total number of incidents was at 7,372 and the total amount was Rs 34.20 cr. In comparison, for the same, third quarter of 2016, the total number of incidents was 3,156 and the total amount involved was only 15.46 cr (see graph).

The highest number of fraud cases involving credit cards, debit cards and internet banking is from Maharashtra.

The state reported 380 cases of such fraud worth Rs 12.10 crore in the last financial year, counting only cases where the loss was over Rs 1 lakh. Two years ago, there were only 255 cases involving 6.75 cr.

Karnataka was at second place, followed by Haryana, Tamil Nadu and Delhi.