RBI report stresses on need for public awareness about cyber frauds

With the rise in digital transactions, the volume of cyber frauds using novel modus operandi has increased in recent times, the December edition of the Financial Stability Report (FSR) stated.

“Considering the fact that the financial losses and emotional distress caused by these frauds are substantial, it is imperative that Regulated Entities (REs) undertake wide-scale preventive awareness initiatives to caution the public about such frauds and intensify efforts to identify mule accounts,” it said.

According to the RBI’s Report on Trend and Progress of Banking in India 2023-24, the number of bank frauds witnessed a significant year-on-year (YoY) increase in the first half of the current fiscal to 18,461 cases and the amount involved jumped more than eightfold to ₹21,367 crore.

The number of frauds during April-September stood at 18,461, involving ₹21,367 crore compared to 14,480 cases worth ₹2,623 crore a year ago.

According to the FSR, regulatory initiatives continue to focus on reinforcing the safety and resilience of the financial system.

Efforts have been focused on strengthening the resilience of financial intermediaries and market infrastructure, with an emphasis on cyber resilience, fraud prevention and customer protection, the report said.

Regulators have remained vigilant and responsive, adapting to the changing financial environment, the report concluded, striking an optimistic note.