Credit Card Fraud Statistics in India: A Rise of 10 Times in a Decade, Says RBI Data
The Reserve Bank of India (RBI) has released its latest data on trends and progress of banking in India, revealing a staggering total of 9,053 cases of frauds reported in various banking operations amounting to Rs 45,598 crore in 2021-22. This marks a tenfold increase from the 2011-12 figures, when the total value of frauds stood at Rs 4,497 crore out of 4,091 cases.
Fraudulent Activities by Type
The majority of these frauds relate to Advances, with a whopping Rs 43,512 crore being lost due to such fraudulent activities. Deposit-related frauds accounted for Rs 493 crore, while Cheque/Demand Drafts related frauds were valued at Rs 158 crore.
Consistent Trend Over the Years
Interestingly, this trend has remained consistent over the years, even a decade ago. In 2011-12, advances-related frauds also accounted for the majority of the total value of frauds, which was Rs 4,497 crore. Deposits and cheque/demand drafts related frauds were valued at Rs 219 crore and Rs 40 crore, respectively.
Decline in Total Value of Frauds
However, it is notable that the total value of frauds has seen a decline in the past two years. The value of frauds decreased from Rs 1,66,576 crore in 2019-20 to Rs 1,18,417 crore in 2020-21 and further to Rs 45,598 crore in 2021-22.
Prevention Measures
To prevent such instances, banks have implemented measures such as:
- Encryption
- Secure payment gateways
In case a fraud occurs, the bank is responsible for refunding the amount to the customer. The RBI emphasizes the importance of timely reporting of fraudulent activities and highlights the need for increased vigilance in banking operations.
What You Can Do
If you are a victim of credit card fraud, it is crucial to inform your bank immediately. According to the RBI, if you notify your bank within three days of financial fraud, your liability may be limited or even zero. The onus is now on the bank to prove that the customer did not fall prey to fraud.
Conclusion
The RBI data highlights the need for increased vigilance in banking operations and emphasizes the importance of timely reporting of fraudulent activities. As credit card transactions continue to rise, it is essential for consumers to remain aware of their financial security and take necessary steps to protect themselves against fraud.