Latest news with #MuleHunter
Mint
6 days ago
- Business
- Mint
‘Digital payment frauds not alarming'
New Delhi: Digital payment fraud data revealed in Parliament this year is 'not alarming' and should not be conflated with other types of banking fraud that do not affect the public, a person informed about the finance ministry's record of such cases said on Monday, after an opposition party's social media post. This person cited above said the number of digital payment-related frauds reported in the last 10 years and the amounts involved are not alarming and mixing it up with other types of banking frauds, where public is not the victim, will paint a wrong picture of the safety of the digital payment ecosystem. The total number of 'digital payment frauds' reported in India in the last ten years stands at 63,315 cases. This figure, reported by commercial banks and financial institutions under the specific category 'card/internet and digital payments', takes into account amounts involving at least ₹ 1 lakh, the person said quoting data tabled in Parliament on 10 March. Minister of state for finance Pankaj Chaudhary had on that day informed the Lok Sabha that these cases between FY14 and FY25 up to December involved a total loss to these entities of ₹ 733.26 crore, showed the written answer given to the House. However, the opposition Congress party on Monday cited a larger figure in a social media post. Conflating specific digital payment frauds with the much broader category of total banking frauds will create doubts about the banking system and amounts to creating a sense of alarm, the person said. The finance ministry, the RBI and the National Payments Corporation of India (NPCI) have rolled out several crucial measures to secure digital financial transactions and to combat fraud, the person said. The RBI issued norms on digital payment security controls in February 2021, mandating banks to implement common minimum standards of security controls for various payment channels like internet banking, mobile banking, and card payments, the person said. To proactively identify illicit financial activities, the RBI has also launched an Artificial Intelligence-based tool named 'MuleHunter' for the identification of money mule accounts, the person said. A money mule account is one that is used to illicitly transfer or launder money. A second person, who also spoke on condition of anonymity said that although current fraud rates remain low at roughly one per 114,000 transactions, there has been a rise in the volume and average size of cyber frauds. Hence, measures are being taken to increase public awareness to help prevent such crimes. Queries emailed to the finance ministry and to the Congress party on Monday late evening seeking comments for the story remained unanswered at the time of publishing.
Economic Times
29-05-2025
- Business
- Economic Times
Spike in loan and digital frauds: RBI data reveals frauds jump three times in FY25
Agencies Representational image The overall number of frauds, including those related to loan accounts and digital payments, jumped by three times in FY25, primarily due to reclassification of 122 cases as per a Supreme Court order. The fraud value jumped to ₹36,014 crore in FY25, up from ₹12,230 crore in the previous fiscal year, according to data released by the Reserve Bank of India (RBI). An analysis of fraud cases across different bank groups over the past three years shows that private sector banks recorded the highest number of fraud incidents, whereas public sector banks accounted for the largest share of the total fraud amount. Most frauds took place in digital payment channels such as cards and internet banking. While digital frauds made up the majority of cases reported by private sector banks, frauds in public sector banks were primarily linked to their loan portfolios. In 2024-25, private sector banks accounted for nearly 60% of total fraud cases, reporting 14,233 incidents. However, it was public sector banks that saw the highest monetary impact, with frauds totaling ₹25,667 crore — a staggering 71.3% of the total fraud amount across all trend has been consistent. While private banks have historically led in the number of frauds, public sector banks continue to dominate in terms of the financial value lost to fraud. For example, in 2023-24, public banks reported frauds worth ₹9,254 crore, compared to ₹2,722 crore in private banks, despite having far fewer cases. Loan Frauds and Digital Scams Dominate A breakdown by area of operation highlights that loan-related frauds remain the most damaging in monetary terms. In 2024-25, advances accounted for ₹33,148 crore of fraud, or over 92% of the total amount involved. This reflects a sharp rise from ₹10,072 crore in contrast, digital payment frauds — including those involving cards and internet banking — made up the largest share by number. Of the 23,953 total fraud cases reported in 2024-25, 13,516 were related to card or internet transactions, constituting over 56% of all cases. However, these frauds accounted for just ₹520 crore in losses, showing that while frequent, they typically involve smaller RBI has recognized the growing risks in both traditional lending and digital channels. It is currently working on strengthening its fraud detection mechanisms and has already taken steps to improve oversight, enhance reporting standards, and tighten cyber security protocols across the banking sector. The central bank is also developing advanced analytics systems, including AI-driven tools like MuleHunter, to flag suspicious activities early and bolster the fraud response frameworks of regulated entities.
