Gujarat has witnessed a dramatic rise in digital banking fraud, reporting a staggering 1,349 cases involving credit and debit cards, as well as internet banking transactions, in the financial year 2023-24. This marks a jaw-dropping 469% increase compared to the mere 247 cases recorded in the 2022-23 financial year, according to data from the Union finance ministry.
Banking sector insiders attribute this surge to the increasing awareness among the public about reporting fraud. Gujarat’s figures, however, are part of a larger national issue. States reporting higher numbers of such fraud cases include Tamil Nadu (6,871), Maharashtra (6,514), Delhi and NCR (2,487), Uttar Pradesh (1,462), and West Bengal (1,353).
In FY 2024, residents of Gujarat lost Rs 49.92 crore to digital banking frauds, a 400% increase from the Rs 9.87 crore lost in FY 2023. A top source at the State Level Bankers’ Committee, Gujarat, explained, “In most cases, the frauds are related to the sharing of ATM, debit, and credit card PINs and CVVs. Unsuspecting individuals, including youngsters and senior citizens, fall prey to such scams and divulge details over the phone, losing money to scammers.”
As per the media reports “In other cases, people often click on dubious links received on WhatsApp and SMS, leading to their banking information being compromised and transactions taking place without their knowledge.”
According to the Reserve Bank of India’s (RBI) annual report, digital payment fraud predominantly occurs in debit card, credit card, and internet banking transactions, which constitute the bulk of fraud cases in terms of numbers. The number of financial fraud cases in Gujarat has increased 25 times in five years, from 51 in FY 2020 to 1,349 in FY 2024. The amount lost by people has increased by 1,639%, from Rs 2.87 crore in FY 2020.
Over the past five years, banking fraud in Gujarat has totaled Rs 74.07 crore across 1,914 reported cases. A senior banking official, speaking on the condition of anonymity, stated, “The rising number of cases is not solely due to an increase in incidents but also in reportage. Awareness campaigns by banks, the RBI, and the Gujarat cybercell have played a proactive role in educating people about preventing banking frauds. All banks have launched a toll-free number for timely reporting of digital banking fraud.”
To further combat this issue, banks have initiated awareness campaigns through SMS and social media to educate their customers on how to protect themselves from potential scams.
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