Shocking spike in Gujarat’s banking fraud, 469% increase

Gujarat recorded 1,349 cases of banking-related fraud, a significant 469% increase, in the fiscal year 2023-24. The state ranked sixth in India for such incidents, with Tamil Nadu leading the list. Losses in Gujarat due to digital banking fraud rose to Rs 49.92 crore, a 400% jump from Rs 9.87 crore in FY 2023. Common fraud methods include the sharing of ATM, debit, and credit card details and clicking on suspicious links. Over five years, fraud cases in Gujarat increased 25-fold, with total losses surging by 1,639% to Rs 74.07 crore.

Banking fraud

Image source: Pixabay

Gujarat recorded an astounding 1,349 instances of banking-related fraud involving credit and debit cards as well as online banking transactions, in the last fiscal year 2023-24. The Union finance ministry’s data shows an astounding 469% increase from the mere 247 cases in the 2022–2023 fiscal year. Sources in the banking industry credit this increase to people becoming more conscious of the need to report fraud.

Tamil Nadu ranked first (6,871), followed by Maharashtra (6,514), Delhi and NCR (2,487), Uttar Pradesh (1,462), and West Bengal (1,353). Gujarat ranked sixth among Indian states in terms of such cases.

In FY 2024, people in Gujarat lost Rs 49.92 crore due to digital banking fraud, a 400% increase from Rs 9.87 crore in FY 2023.

According to a top source at the Gujarat State Level Bankers’ Committee, “In most cases, frauds involving the sharing of ATM, debit, and credit card PINs and CVVs are very common. Unwary people, including children and the elderly, fall victim to such fraud and reveal personal information over the phone, resulting in financial losses to scammers.”

The top source further adds, “In other cases, people often click on dubious links received on WhatsApp and SMS, leading to their banking information being compromised and transactions taking place without their knowledge.”

According to the Reserve Bank of India’s (RBI) annual report, digital payment fraud is most prevalent in debit card, credit card, and internet banking transactions, accounting for the vast majority of fraud cases.

Gujarat has seen a 25-fold increase in financial fraud cases over the last five years, from 51 in FY 2020 to 1,349 in FY 2024. People’s losses have increased by 1,639% since FY 2020, when they were Rs 2.87 crore. Over the last five years, the state has reported 1,914 cases of banking fraud totaling Rs 74.07 crore.

Leave a comment

Subscribe To Newsletter

Stay ahead in the dynamic world of trade and commerce with India Business & Trade's weekly newsletter.