Credit Card Fraud Statistics in India Skyrocket: RBI Data Reveals Alarming Rise
The Reserve Bank of India (RBI) has released data that suggests a staggering 70.64% increase in domestic payment frauds to Rs 2,604 crore during the six-month period ended March 2024, compared to the same period last year.
Rising Trend of Credit Card Fraud
According to RBI data, there were:
- 2.57 lakh payment frauds involving Rs 471 crore in March alone
- 2.53 lakh frauds for Rs 503 crore in February
The alarming rise in credit card frauds has led to concerns over reputational, operational, and business risk for banks, as well as undermining customers’ trust in the banking system.
New Technologies Increase Risk of Fraud
A recent RBI report highlighted that while new technologies enhance efficiency and effectiveness of banking operations, they also increase the risks of fraud and data breaches. Despite efforts by banks to improve technology and implement tough regulations, scammers are finding new ways to evade detection.
Credit Card Transactions Reach Record Level
The rise in credit card usage has led to a surge in transactions, with the value of credit card transactions reaching a record level of Rs 164,223 crore in March 2024. Of this, point-of-sale transactions were Rs 60,378 crore. Banks have been aggressively marketing credit cards, offering attractive reward points, EMI facilities, and even personal loans based on credit rating scores.
Experts Warn of Urgent Need for Action
Experts warn that the increasing trend of credit card frauds requires concerted efforts from all stakeholders to protect the system from these threats. As RBI continues to update regulations to protect customers while ensuring innovation is not stifled, banks and customers must remain vigilant to prevent further frauds.
Key Statistics:
- 70.64% increase in domestic payment frauds during the six-month period ended March 2024
- Rs 2,604 crore worth of fraudulent transactions during the same period
- 12,069 cases involving Rs 630 crore during April-September 2023-24, compared to just 2,321 cases for Rs 87 crore in the same period last year
- Overall, banks reported 14,483 fraud cases involving Rs 2,642 crore during the same period