Government shares data on online banking fraud and number of cases resolved


Cases related to online fraud decreased by approximately 17.5% in FY22 to 128 crore against 160 crores registered in the previous financial year, Rajya Sabha informed on Monday. Comprehensive measures have been taken to combat online banking fraud.

“According to RBI data on frauds reported by Regular Commercial Banks (SCBs) under the category ‘Card/Internet – ATM/Debit Cards, Credit Cards and Internet Banking’, the amount involved in these frauds, based on year of occurrence, a has decreased from Rs. 185 crore in FY 2019-20 to Rs. 160 crore in FY 2020-21 {decrease year-on-year ( YoY) by 15.2%} and to Rs. 128 crore in FY 2021-22 (YOY decline of 17.5%),” the Minister of State for Finance in the Lok Sabha said.

He further stated that according to the information received from the National Crime Records Bureau (NCRB) regarding the registered cases regarding these frauds, the latest published data relates to the year 2020, according to which, regarding frauds related to vending machines of tickets / credit cards / debit cards, online banking and OTP for the year 2018 to 2020, 16450 cases were registered and 8981 cases were processed.

He was responding to the opposition’s question on whether the RBI had proposed to make the cardless cash withdrawal service available at all banks and ATM networks using the Unified Payments Interface (UPI ), in addition to improving the ease of transactions, to help prevent fraud such as card skimming. , card cloning, etc.

“RBI has issued instructions on the cybersecurity framework in banks and has mandated SCBs to report all unusual cyber incidents to RBI within two to six hours of the occurrence of such incidents. These incidents are analyzed for the model of attack and exploited vulnerabilities, and where necessary, notices/alerts are sent to banks in order to avoid repeated attacks/exploitations of the same vulnerabilities, the Minister told the Chamber.

The corrective measures taken by the government to prevent fraud and cheating via online transactions

1) A comprehensive circular on cybersecurity framework in banks was issued by RBI on 2.6.2016, in which banks were requested to put in place a board-approved cybersecurity policy explaining the strategy containing an appropriate approach to combat cyber threats given the level of complexity of the activities and acceptable levels of risk.

2) Guidance on Cybersecurity Controls for Third-Party ATM Switching Application Service Providers (ASPs) was published by RBI on 31.12.2019.

3) Key instructions on digital payment security controls were issued by RBI on 18.2.2021, in which banks were instructed to put in place the necessary controls to protect the confidentiality and integrity of customer data, and the processes associated with the digital products/services offered.

4) A National Cybercrime Reporting Portal has been launched by the Home Office for the public to report incidents related to all types of cybercrimes, and a toll-free number has also been put into operation to obtain help filing complaints online.

5) For immediate reporting of financial frauds and to stop embezzlement by fraudsters, Financial Cyber ​​Fraud Reporting and Management System Module has been made operational by Indian Cyber ​​Crime Coordination Center (I4C), which comes under the Ministry of the Interior. .

6) The Computer Emergency Response Team India (CERT-IN) of the Ministry of Electronics and Information Technology regularly issues alerts and notices regarding the latest cyber threats and countermeasures to ensure safe use security of digital technologies, and works in coordination with service providers. , regulators, and LEAs to track and disable phishing websites and help investigate fraudulent activity.

A number of measures have been taken to strengthen the security of digital payment transactions

  • conversion of magnetic stripe cards to EMV chip and PIN cards;
  • make the activation of online alerts mandatory for all transactions;
  • certification of merchant terminals;
  • make PIN entry mandatory for all ATM transactions
  • enable all ATMs to process EMV chip and PIN cards;
  • restriction of international use by default and activation of this only after specific mandate from the customer;
  • Capping the value/mode of transactions/beneficiaries;
  • set daily limits; and
  • issue alerts when adding beneficiaries.

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