25k Cases Of Online Banking Fraud In 2017; Here Are Our Top Digital Fraud News!

Most of the crimes took advantage of people's lack of digital knowledge and tricked them into giving
out their banking details.

By Mohul Ghosh Last updated Jan 1, 2018

As we enter 2018, one of the most crucial and vital aspects which we need to focus is online frauds. Be it
frauds related to online banking or using OTP to syphon off funds, we need to stay alert, and vigil.

We will share top 5 online transactions related fraud which we covered in 2017; but before that, let us
know the official numbers when it comes to online banking frauds.

Contents [hide]

 1 25,800 Frauds Recorded; Maharashtra Tops The List

 2 Top Digital Fraud Cases Of 2017!

o 2.1 Rs 3700 Crore Online Scam

o 2.2 Aadhaar-Scam With ICICI Bank

o 2.3 Aadhaar-Scam With LIC

o 2.4 Aadhaar-Scam With Bank

 3 Zero Liability For Online Fraud Transactions

25,800 Frauds Recorded; Maharashtra Tops The List

In a written reply to a question in Rajya Sabha, IT minister Ravi Shankar Prasad informed the nation that
as of December 21st, 2017, there were a total of 25,800 cases of fraud related with online banking
recorded.

A total amount of Rs 179 crore has been swindled in these 25,800 fraud cases, which includes instances
from net banking and usage of debit/credit cards.

The cases are increasing, as the December quarter (Till December 21st) witnessed 10,220 cases alone,
worth Rs 111.85 crore

Here is the breakdown:

 September quarter: 7,372 cases

  June quarter: 5,148 cases

 March quarter: 3,077 cases

Only Rs 67.13 crore was involved in fraud cases for March quarter, which is the minimum; while
December quarter has witnessed maximum cases and amount.

Maharashtra has topped the list of online frauds, among all states, with 380 cases involving Rs 12.10
crore.

Here is the fraud ranking:

1. Maharashtra: 380 cases worth Rs 12.10 crore

2. Haryana: 238 cases worth Rs 8.27 crore

3. Karnataka: 221 cases worth Rs 9.16 crore

4. Tamil Nadu: 208 cases worth Rs 4.38 crore

5. Delhi: 156 cases worth Rs3.43 crore

Top Digital Fraud Cases Of 2017!

2017 witnessed several online frauds, involving e-commerce customers, Aadhaar users, senior citizens
who gave away their OTP and along with lakhs of rupees to the scammers and more.

Here are our top picks:

Rs 3700 Crore Online Scam

In terms of value, this is hands-down, the biggest online fraud which we reported last year. In the name
of ‘Social Trade’, a so-called entrepreneur looted 7 lakh people, and the case is still pending.

Aadhaar-Scam With ICICI Bank

The chaos and panic related to Aadhaar linking led to this scam worth Rs 1.3 lakh, wherein scammers
posed as bank officials and tricked the customer to give away their OTP. And the rest, was history.

Aadhaar-Scam With LIC

This was more of a warning, rather than an actual scam; but still, due to the importance of LIC, we
included this scam in the list. After Govt. made Aadhaar linking of insurance policies compulsory, some
fraudsters created fake websites to syphon-off money.

Aadhaar-Scam With Bank

This was yet another Aadhaar related scam, wherein the fraudsters exploited the trust of non-tech savvy
bank customers and tricked them into revealing their OTP. We have repeated this earlier as well: Never,
ever reveal your OTP to anyone.

Zero Liability For Online Fraud Transactions

Finally, some good news. RBI has declared that in case of negligence
from the bank in an online fraud, the customer will have zero liability.
Besides, Rs 5000 as the customers’ liability has already been announced,

India has the highest

in case of bank transactions fraud.

rate of online banking frauds in the world:

report
Dilsher DhillonMay 29, 2018, 04.58 PM
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 A survey by FIS, a financial services technology provider, showed that 18% of

Indians suffered from an online banking fraud in the past year.
 This was a higher percentage than any other country’s respondents.
 In December, Ravi Shankar Prasad, the minister for information technology, said
that there were over 25,800 cases of digital fraud in India in 2017.

After you finish reading this, you might want to review your latest banking transactions or even
change your passwords or PIN codes for your credit and debit cards.

According to a global survey conducted by FIS, a financial services technology firm, Indians are
among the most frequent victims of online banking frauds. In fact, around 18% of Indians
surveyed reported a fraud in the preceding year. This was a higher percentage than any other
country’s respondents. In comparison, only 8% of people from Germany reported a fraud
followed by 6% in the UK.

A major portion of frauds affected Indians between the ages of 27 to 37 - the most regular users
of online banking channels. Around 25% of the people in this age group reported a fraud.

There were some positive findings, however. The report identified the increased adoption of
digital banking channels by Indian respondents above the age of 53. It also showed that
smartphones were close to usurping laptops as the main device through which banking
transactions were being conducted.
This past December, Ravi Shankar Prasad, the minister for information technology, said that
there were over 25,800 cases of digital fraud in India in 2017 resulting in the theft of nearly ₹1.8
billion rupees. As the use of digital banking applications becomes more widespread, it is likely
that the rate of frauds will only increase further.

As per its notification in July 2017, The Reserve Bank of India has tried to limit customers’
liability when faced with fraudulent online transactions by giving them a window of three days
to report the fraud. However, this does not extend to cases where the customer knowingly gave
their payment info to a third party.

India’s policemen are also being trained to tackle cyber crime. The government of Karnataka,
which instituted a cyber crime cell in 2003, plans to enroll 1000 policemen in cyber crime
training programmes. In addition, the police units of Maharashtra and Uttar Pradesh are
reportedly collaborating with data security and IT experts to improve their cybercrime
investigation skills.