Lok Sabha Question No. 1956 (UNSTARRED), answered on 2018-12-21
Subject: Investigation of ATM Frauds
Ministry: FINANCE
Asked by: RAVINDRA KUMAR PANDEY, NISHIKANT  DUBEY, RAJESH PANDEY

## GOVERNMENT OF INDIA

## MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UN-STARRED QUESTION No. 1956

TO BE ANSWERED ON 21 DECEMBER 2018 (FRIDAYYAGRAHAYANA 30, 1940 (SAKA)

## Investigation of ATM Frauds

## 1956. SHRI RAVINDRA KUMAR PANDEY: SHRI NISHIKANT DUBEY: SHRI RAJESH PANDEY:

Will the Minister of FINANCE be pleased to state:

- (a) whether the ATM fraud cases are increasing in the country;
- (6) if the details thereof and the cases registered, investigated and the action taken during the last two years and the current year; SO,
- (c) whether the Government has developed any policy/taken steps to check such frauds; and
- (d) if so, the details therefor?

## The Minister of State in the Ministry of Finance (SHRI SHIV PRATAP SHUKLA)

## Answer

(a) to (d) As apprised by Reserve Bank of India (RBD), specific information on ATM fraud is not available. However; number of Debit card related ATM frauds (amount involved of Rs. 1 lakh and above)  during last  three financial year  and current financial year   (upto   30th September; 2018), as reported by RBl is provided below:

| Number of Debit Card related ATM Frauds reported during the last 3 years and the current year (Amount involved Rs 1 lakh and above)   | Number of Debit Card related ATM Frauds reported during the last 3 years and the current year (Amount involved Rs 1 lakh and above)   | Number of Debit Card related ATM Frauds reported during the last 3 years and the current year (Amount involved Rs 1 lakh and above)   | Number of Debit Card related ATM Frauds reported during the last 3 years and the current year (Amount involved Rs 1 lakh and above)   |
|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|
| 2015-16                                                                                                                               | 2016-17                                                                                                                               | 2017-18                                                                                                                               | 2018-19 (Upto 30 Sept 2018)                                                                                                           |
| 563                                                                                                                                   | 724                                                                                                                                   | 911                                                                                                                                   | 507                                                                                                                                   |

Further; vide Master Circular on Frauds-Classification and Reporting' dated 1.7.2015, concerned banks are advised to examine the fraud cases and report them to law enforcement agencies, examine staff accountability, complete proceedings against the staff expeditiously, take steps to recover the amount involved in the fraud, claim insurance wherever applicable and streamline the system as also procedures so that frauds do not recur: erring

As per circular Customer Protection Limiting   Liability of Customers in Unauthorised Electronic   Banking Transactions dated 6.7.2017, in case of  unauthorised transactions occurring due to contributory fraud/negligenceldeficiency on the part of the bank and due to third party breach with customer notifying the bank within three working of receiving communication from the bank regarding the unauthorised transaction, the customer is entitled t0 zero liability: days on 'Control measures for ATMs Timeline  for compliance` has advised banks to initiate immediate action to implement the   control measures for ATM, including up-gradation of software in a time bound manner and to closely monitor the compliance.

Further; RBI, vide its circular dated 27.8.2015 on *Security and Risk Mitigation Measures for Card Present and Electronic Payment Transactions Issuance of EMV Chip and PIN Cards' has advised banks to ensure that by December 31, 2018 all active cards issued by them are EMV Chip and Pin-based.

Vide the circular of RBI dated 6.7.2017 as mentioned above, banks are advised to provide customers with 24x7 access through multiple channels (at a minimum, via website, phone banking; SMS, e-mail, IVR, a dedicated toll-free helpline, reporting to home branch; etc.) for reporting unauthorised transactions that have taken and/ or loss or theft of payment instrument such as card, etc. place