Banking fraud total jumped 43% to Rs 52.66 cr in 2012: Govt

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SummaryHowever, the number of total cases in 2012 (calender year) was lower.

The total amount involved in banking fraud rose by 43.4 per cent to Rs 52.66 crore in 2012 from Rs 36.72 crore in the previous year as reported by RBI, Parliament was informed today.

However, the number of total cases in 2012 (calender year) was lower at 8,322 from 9,588 in 2011, Minister of State for Finance Namo Narain Meena said in a written reply to the Lok Sabha.

In calendar year 2010, there were a total of 15,018 cases in respect of scheduled commercial banks pertaining to frauds relating to ATMs/Debit Cards/Internet Banking and Credit Cards involving Rs 40.48 crore, the Minister said.

Meena said the Reserve Bank has initiated several steps to strengthen security arrangements by banks.

"On receipt of fraud reports from banks, various aspects related to the frauds are examined and concerned banks are advised to report the case to CBI/police/SFIO, examine staff accountability, complete proceedings against the erring expeditiously, take steps to recover the amount involved in the fraud, claim insurance...and streamline the system as also procedures so that frauds do not recur," the Minister said citing an RBI circular.

He said the RBI has asked banks to take preventive measures to combat frauds relating to skimming or duplication of credit cards.

RBI has also advised banks to set up internal control systems to combat frauds and to take pro-active fraud control and enforcement measures to ensure that credit card operations are run on sound, prudent and profitable lines.

Moreover, it has also cautioned banks on phishing attacks containing details of the modus-operandi on such attacks and minimum set of preventive measures to tackle phishing attacks.

Meena said public is also advised through press releases, notifications not to reveal account details, not to fall prey to fictitious offers of fund transfer, remittance towards participation in lottery, money circulation schemes, and other fictitious schemes such as cheap funds.

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