Net banking & card frauds up 50%, Delhi is ATM con capital
- The numbers of ATM frauds in public sector banks were, however, more revealing. net backing
- While State Bank of India, with over 58,000 ATMs across India at the end of March 2019, accounted for over 25% of the over 2 lakh cash dispensers, one in five frauds were reported at its ATMs
NEW DELHI: Instances of unlawful transactions involving internet banking, ATMs and credit and debit cards shot up over 50% to cross 52,000 in 2018-19, with Delhi being the ATM fraud capital accounting for nearly 27% of the reported cases of “siphoning off of cash”.
In response to questions, the government told Parliament the amount involved in such incidents, however, has come down (see graphic).
The numbers of ATM frauds in public sector banks were, however, more revealing. While State Bank of India, with over 58,000 ATMs across India at the end of March 2019, accounted for over 25% of the over 2 lakh cash dispensers, one in five frauds were reported at its ATMs.
But second-placed IDBI Bank, which had 3,700 ATMs according to its website, saw close to 1,800 frauds being reported. So, its share of the ATM population was estimated at 1.8% but when it came to reported frauds, it accounted for 15% of the pie between April 2017 and March 2019.
While the government did not reveal the reasons for the frauds, bankers said India is seeing an increase in a number of such attempts as it tries to scale up its infrastructure to shield itself.”We’re seeing a massive influx of fraudsters from foreign countries as the infrastructure in Europe has been upgraded making life difficult for them,” said a banker.
A banker said cameras are being deployed above the ATM keypad and other techniques, often using malware, are being used by skimmers and fraudsters to siphon off funds using net banking.
RBI has issued detailed norms to improve the infrastructure through the introduction of anti-skimming, white-listing solutions and software upgrades apart from asking banks to issue only chip- and PIN-based cards. But banks are seen to be slow in responding to the challenges, including in upgrading the ATM network.
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