Banks reported surge in frauds in FY24

As many as 36,075 frauds were reported in banks in the financial year 2023-24 (FY24), growing nearly 166 per cent from the 13,564 cases reported in FY23.

The amount involved in the bank frauds decreased 46.7 percent year-on-year (Y-o-Y) in FY to Rs 13,930 crore, according to the Reserve Bank of India’s (RBI) annual report released. The amount in FY23 was Rs 26,127 crore.

An evaluation of bank group-specific fraud cases spanning the past three years reveals that although the private sector reported more frauds, public sector banks consistently accounted for the highest total fraud amount.

The majority of fraud cases have occurred within the realm of digital payments (specifically involving cards and internet transactions) both in terms of frequency and monetary value.

The report states that fraud cases reported in the loan portfolio (under the advances category) have constituted the primary source of financial loss.

Private sector banks mostly reported frauds in small-value card and internet transactions. Frauds in public sector banks were primarily concentrated within the loan portfolio. “While small value card/internet frauds contributed maximum to the number of frauds reported by the private sector banks, the frauds in public sector banks were mainly in loan portfolios,” the RBI’s analysis showed.