Financial Crime World

Credit Card Fraud Statistics in India Alarmingly High: Survey Reveals 42% of Citizens Experienced Financial Fraud in Last Three Years

Despite the surge in digital payments in India, financial fraud has also increased significantly. A recent survey by LocalCircles reveals that a staggering 42% of Indians have fallen victim to financial fraud over the past three years, with a whopping 74% failing to recover their losses.

The survey highlights several worrying trends:

  • 29% of respondents shared their ATM or debit card pin details with family members.
  • 4% shared them with domestic and office staff.
  • 33% store their bank account, debit or credit card, and ATM passwords on email or computer.
  • 11% keep them in mobile phone contact lists.

Online Fraud Rates High

According to the Microsoft 2021 Global Tech Support Scam Research report, online fraud rates in India stood at a high 69% last year. The Reserve Bank of India (RBI) data shows that bank frauds worth ₹60,414 crore were reported in 2021-22, with an average daily loss of ₹100 crore over the past seven years.

Types of Financial Fraud

The RBI has classified financial frauds into various categories, including:

  • Misappropriation and criminal breach of trust
  • Fraudulent encashment through forged instruments
  • Manipulation of books of account
  • Fictitious accounts
  • Conversion of property
  • Unauthorized credit facilities
  • Cheating
  • Forgery
  • Irregularities in foreign exchange transactions
  • Other types of fraud

Common Incidents Reported

The survey revealed that the most common incidents reported over the past three years were:

  • Bank account fraud (29%)
  • Fraud by fly-by-night e-commerce operators (24%)
  • Credit and debit card frauds (21%)

Experts’ Advice

Experts have advised citizens to:

  • Use alpha-numeric password locks for email, computer, and mobile phones
  • Change passwords at random intervals
  • Promote financial literacy in various Indian languages

Improvements Needed

Citizens on the LocalCircles platform have suggested that:

  • The government and RBI should organize awareness programs on the risk of financial fraud and how it can be prevented.
  • The redressal process for victims of financial fraud needs to be improved, as only 17% who faced financial fraud were able to recover their losses.
  • The policing system must be sensitized to handle such issues effectively and provide guidance to victims.