RBI Report: Bank fraud cases increased three times in six months, private bank customers became the maximum victims.
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RBI Report on Bank FraudOn one hand, every possible effort is being made by the government and the Reserve Bank of India to promote digital transactions in the country. At the same time, cases of bank fraud have increased three times in the last six months. The big thing is that private bank customers have become the maximum victims of these frauds. This information has been given in a report released by the Reserve Bank of India (RBI) on bank fraud. However, it is a matter of relief for banks and customers that the amount involved in fraud has come down. The apex bank’s report released on ‘Trend and Progress of Banking in India 2022-23’ emphasizes the need to protect the banking system and payment system from the risks of fraud and data breach arising from cyber threats.
14,483 cases of fraud
In the first half of the current financial year, the number of bank fraud cases increased to 14,483 but the amount involved was only 14.9 percent compared to last year. This information has been given in a report of the Reserve Bank. A total of 14,483 cases of fraud worth Rs 2,642 crore were reported in the first half (April-September) of the current financial year. In the same period a year ago, 5,396 cases of fraud were reported involving Rs 17,685 crore. According to this report of the Reserve Bank, fraud poses a risk to the reputation, operations and commercial activities of banks. This reduces financial stability and also reduces customer confidence in the banking system. According to this, in the financial year 2022-23, banks said that the total cases of fraud will fall to a six-year low while the average amount involved in fraud was the lowest in a decade.
More frauds occurred through cards and internet
The report says the average amount involved in fraud declined in the last financial year and the number of card or internet related fraud cases remained high. With the advent of new technologies the risk of cyber attacks, data compromise and operational failures has also increased. According to the report, banks need to better identify and address technology and cyber security risks to address potential vulnerabilities. The evolving nature of risks facing the banking system needs to be reinforced through better governance arrangements and stronger risk management measures. Scheduled commercial banks (SCBs) in India are also leveraging artificial intelligence (AI) for data analysis, fraud detection and other predictive analytics. Banks have also deployed chatbots or ‘virtual assistants’ to improve customer experience. The report anticipates that AI will transform the financial services sector by fostering the creation of new products and services, opening up new markets and industries, and paving the way for innovation.
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