Over the five-year period, the total financial losses due to fraud amounted to Rs 2,137 crore, while the total amount recovered was Rs 174 crore. Representational image
The number of frauds reported skyrocketed from 2,677 in FY 2019-20 to an alarming 29,082 in FY 2023-24. This represents an increase of 26,405 cases, or 986%, over the five years
In a recent statement to Parliament, Pankaj Chaudhary, minister of state for finance, disclosed concerning statistics on financial frauds reported by banks over the past five fiscal years. The data from the Reserve Bank of India (RBI) reveals a troubling surge in fraud cases involving credit cards, ATM or debit cards, and internet banking.
The number of frauds reported skyrocketed from 2,677 in FY 2019-20 to an alarming 29,082 in FY 2023-24. This represents an increase of 26,405 cases, or 986%, over the five years. The total amount involved in these frauds escalated dramatically from Rs 129 crore in FY 2019-20 to Rs1,457 crore in FY 2023-24, a rise of Rs 1,328 crore, or 1,068 per cent.
In terms of recovery, the amount reclaimed grew from Rs 12 crore to Rs 139 crore, marking an increase of Rs 127 crore or 1,058 per cent. Despite the significant rise in both fraud cases and the amounts involved, the recovery rate has remained relatively stable. The proportion of the amount recovered compared to the amount involved was 9.3 per cent in FY 2019-20 and slightly increased to 9.5 per cent in FY 2023-24.
Over the five-year period, the total financial losses due to fraud amounted to Rs 2,137 crore, while the total amount recovered was Rs 174 crore. This stark difference underscores the challenges faced in combating financial fraud and the need for enhanced security measures.
Here’s a detailed breakdown of the data:
FY 2019-20
- Frauds Reported: 2,677
- Amount Involved: Rs 129 crore
- Amount Recovered: Rs 12 crore
FY 2020-21
- Frauds Reported: 2,545
- Amount Involved: Rs 119 crore
- Amount Recovered: Rs 7 crore
FY 2021-22
- Frauds Reported: 3,596
- Amount Involved: Rs 155 crore
- Amount Recovered: Rs 15 crore
FY 2022-23
- Frauds Reported: 6,699
- Amount Involved: Rs 277 crore
- Amount Recovered: Rs 11 crore
FY 2023-24
- Frauds Reported: 29,082
- Amount Involved: Rs 1,457 crore
- Amount Recovered: Rs 139 crore
However, as per the minister, frauds within the Aadhaar Enabled Payment System (AePS) have been particularly notable, often linked to compromises of Aadhaar numbers and biometric data.
In response, UIDAI now provides a facility to lock Aadhaar numbers to prevent misuse. Banks have been advised to adopt advanced fingerprint authentication methods, offer multiple options for customers to manage AePS transactions, and enforce a cap of Rs 50,000 per month on AePS cash withdrawals to mitigate fraud risks.
