Bank Frauds

Banks to maintain real-time fraud list, more than 3,000 entities listed

Lenders would be required to consult this list before engaging with these entities and continuously update it

RBI red flags 'lakhs' of accounts used for fraud and evergreening

Says nudging NBFCs to enhance disclosure quality

How to handle demands for outstanding dues on credit card that's not yours

Check your credit report, either monthly or quarterly, to stay informed about your credit transactions

Bank frauds rise 166% in FY24 to over 36,000 cases, shows RBI annual report

RBI annual report: Amount involved in bank frauds decreased 46.7% in FY24 to Rs 13,930 cr

Number of frauds in banking sector rises in FY24, amount declines 47%: RBI

The number of frauds in the banking sector went up to 36,075 in 2023-24 year-on-year, but the amount involved reduced by 46.7 per cent to Rs 13,930 crore, according to the Reserve Bank's annual report released on Thursday. The RBI report also said that with an aim to curb frauds and enhance the payment experience further, the introduction of real-time payee name validation before the actual fund transfer will be explored in compliance with newly enacted The Digital Personal Data Protection Act, 2023'. During 2023-24, the amount involved in frauds was Rs 13,930 crore, down from Rs 26,127 crore a year ago. The number of frauds increased to 36,075 during 2023-24 from 13,564 in the preceding financial year. An assessment of bank group-wise fraud cases over the last three years indicates that while private sector banks reported maximum number of frauds, public sector banks continued to contribute maximum to the fraud amount, said the Annual Report for 2023-24. "Frauds have occurred ...

Bank OTP frauds on the rise: Here's what govt is doing to tackle it

The govt is currently testing a system that will allow banks to securely track a customer's registered address and geolocation to ensure the secure delivery of OTPs

Total amount of frauds reported by banks declines to six-year low: RBI

However, the number of frauds that were reported by banks have gone up from 7,263 frauds in 2020-21 to 13,576 in 2022-23

Fraud cases in banking sector rises in first half of FY24: RBI report

The number of frauds in the banking sector during the first half of the current financial year has increased substantially to 14,483 cases, although the amount involved is only 14.9 per cent of the previous year's amount, according to a RBI report. The report on Trend and Progress of Banking in India 2022-23, underlined the need to protect the banking system and the payments system from the risks of fraud and data breaches emanating from cyber threats. As many as 14,483 frauds were reported involving an amount of Rs 2,642 crore in the first half of current financial year, as compared to 5,396 cases (Rs 17,685 crore) in the same period a year ago. Frauds lead to reputational, operational and business risk for banks and undermine customers' trust in the banking system with financial stability implications, it said. During 2022-23, the total amount of frauds reported by banks declined to a six-year low, while the average amount involved in frauds was the lowest in a decade, it ...

ED arrests Ex-KPCC general secy in cooperative bank fraud case in Kerala

Kerala Pradesh Congress Committee (KPCC) former general secretary, K K Abraham, has been arrested by the Enforcement Directorate (ED) in connection with an alleged loan scam that occurred during his tenure as president of a service cooperative bank in Wayanad district. Abraham was taken into custody on Tuesday night in connection with the Pulpally Service Cooperative bank scam, according to official sources. He was subsequently presented before a court on Wednesday, they said without elaborating. ED initiated a probe after receiving multiple allegations of financial irregularities within the bank during Abraham's time as president of the institution's governing body. The victims had approached the ED seeking probe into the scam. One of the victims of the scam had died by suicide a few months ago. Prior to the ED action, Abraham had been arrested by the Vigilance wing of the Kerala police following a cheating complaint filed by an elderly couple.

Rs 2,435 cr fraud: Court allows accused to travel to research on Silk Route

A Delhi court has allowed former non-executive director of CG Power and Industrial Solutions, Omkar Goswami, an accused in an alleged Rs 2,435 crore bank fraud case, to travel abroad to carry out research for his article on 'Silk Route.' Special Judge Arvind Kumar allowed Goswami to travel to Uzbekistan from October 17, 2023 to November 1, 2023. The judge was told by the counsel appearing for Goswami that the accused was an economist by training and had considerable interest in the historical details, especially the 'Silk Route' and the cities along the path, such as Samarkand, Bukhara and Khiva and that he intended to write a research article on the 'Silk Route.' Khiva is home to an excellent library containing several detailed records not available anywhere else and for this reason, the applicant needs to pursue research for his article, the counsel said. In an order passed on September 25, the judge noted that the FIR was registered on June 22, 2021 and the accused had joined th

Trump defrauded banks, insurers while building real estate empire: Judge

A judge has ruled that Donald Trump committed fraud for years while building the real estate empire that catapulted him to fame and the White House. Judge Arthur Engoron, ruling in a civil lawsuit brought by New York Attorney General Letitia James on Tuesday, found that the former president and his company deceived banks, insurers and others by massively overvaluing his assets and exaggerating his net worth on paperwork used in making deals and securing loans. Engoron ordered that some of Trump's business licenses be rescinded as punishment, making it difficult or impossible for them to do business in New York, and said he would continue to have an independent monitor oversee Trump Organization operations. Trump's lawyer, Christopher Kise, said they intend to appeal the decision, calling it a miscarriage of justice and completely disconnected from the facts and governing law. The decision seeks to nationalize one of the most successful corporate empires in the United States and sei

CBI books infra firm in Rs 3,800 cr bank fraud case, searches 4 locations

The CBI has conducted searches at four locations in Mumbai after registering an FIR against Unity Infraprojects Ltd, its then CMD Kishore Krishnarao Avarsekar and others for allegedly defrauding a consortium of banks to the tune of Rs 3,847.58 crore, officials said on Monday. The CBI took action on a complaint of the SBI, one of the consortium members which alleged that the fraud took place at its Commercial Branch in Mumbai where the accused persons siphoned the "Bank's funds by doing fictitious transactions, manipulated and fudged books of accounts with an objective to defraud and cheat the bank and to gain unlawfully at the cost of the Bank's funds". The officials said searches were conducted recently at the premises of the accused. The account of the 44-year-old infrastructure company, which had taken over Rs 3,800 crore from 23 lenders against moveable and non-moveable assets besides personal and corporate guarantees, had become a non-performing asset on June 24, 2014. Five yea

CBI files 2 cases on Varun Industries in Rs 388 crore fraud in two banks

The CBI has registered two separate cases against Varun Industries for alleged bank fraud of more than Rs 388 crore, officials said Wednesday. The company, its promoters and directors Kailash Agarwal and Kiran Mehta were booked in the two fresh cases registered on separate complaints from the Central Bank of India and Canara Bank, they said. The Central Bank of India has alleged that it has suffered a loss of Rs 269.29 crore, while Canara Bank pegged the losses to be around Rs 118.88 crore, they said. "The accused company had availed PCL facilities for the export of steel and kitchenware items, but it was revealed that at least on three occasions, the beneficiaries of Packing Credit Limits (PCL) were not dealing with the steel and kitchenware items," the FIR pertaining to Canara Bank said. In its FIR registered on the complaint of Canara Bank, the Mumbai unit of the CBI's Banking Securities and Fraud Branch noted that the proceeds in the PCL facilities were diverted to other ...

ED raid at my house pre-planned: Kerala's Moideen on bank fraud case

: Senior CPI (M) leader A C Moideen MLA on Wednesday termed the raid carried out by the Enforcement Directorate (ED) at his residence here as "pre-planned," and said he would co-operate with any investigation. The central agency conducted a 22-hour-long search at his house in connection with the money laundering probe linked to an alleged Rs 100 crore fraud in the party-controlled Karuvannur cooperative bank here. The search began on Tuesday morning, and continued till early today. The ED sleuths left at 5.15 am. Addressing the media, the former minister of Cooperation and Industries said the investigators verified his bank account details and that of his family members besides checking other property documents kept at the residence. "The ED officials searched the entire premises. My bank account details, as well as those of my wife and daughter, were examined. The property documents kept at the house were also examined," he said. He said he was told by the investigators that one

Nine British banks sign up to Mastercard's new AI tool for tackling scams

Nine of the UK's biggest banks, including Lloyds Banking Group Plc, Natwest Group Plc and Bank of Scotland Plc, have signed up to use the Consumer Fraud Risk system, Mastercard

CBI files case against IL&FS Transportation Network for defrauding 19 banks

The fraud done by IL&FS Transportation Network Ltd (ITNL) and its directors came to light in 2018 after the National Company Law Tribunal (NCLT) appointed a new board of directors

Bank frauds dip further in FY23, private lenders report maximum cases

However, total amount scammed from state-run banks higher than private

After Supreme Court's verdict, banking frauds in the eye of the beholder

The chain from detection to redressal is a long and tangled one

Can't declare a borrower 'fraud' without hearing him first: SC tells RBI

The apex court upheld a judgement passed by the Telangana High Court in December 2020 stating that the principles of "audi alteram partem" must be applied before declaring a party as fraud

Rise in average value of card, internet banking frauds: Govt data

Average fraud value up at Rs 34,802 in 2021-22, but number of such instances down 8% to 65,045