Lok Sabha Question No. 2425 (UNSTARRED), answered on 2019-07-08
Subject: ATM Card Cloning Frauds
Ministry: FINANCE
Asked by: Prabhubhai Nagarbhai Vasava, P.R. Natarajan

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## UNSTARRED QUESTION No. 2425

ANSWERED ON MONDAY, JULY 8, 2019/ASHADHA 17, 1941 (SAKA)

## ATM CARD CLONING FRAUDS

## 2425. SHRI PRABHUBHAI NAGARBHAI VASAVA: SHRI P.R. NATARAJAN:

Will the Minister of FINANCE be pleased to state:

- (a) the  details  of  the  number  of  cases  of  ATM  Card  cloning  fraud  registered  across  the country  during  each  of  the  last  three  years  and  the  current  year,  State-wise  including Gujarat and Tamil Nadu;
- (b)  whether  the  cases  of  ATM  Card  cloning  fraud  are  increasing  year  by  year  across  the country, if so, the details thereof and the reasons therefor;
- (c)  the details of the number of cases have been solved so far;
- (d)  whether the ratio of solved cases is very less and if so, the reasons therefor; and
- (e)  the corrective steps taken by the Government in this regard?

## Answer

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

- (a) to  (e) As  apprised  by  Reserve  Bank  of  India  (RBI),  the  data  about  online  frauds (ATM/Debit  Card,  Credit  Card  and  Internet  Banking)  is  given  in Annexure .  However they have informed that specific data on card cloning and the details of solved number of cases is not available with RBI.

Measures taken to prevent online frauds by RBI are as follow:

- (i) Vide RBI's 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 erring  staff  expeditiously,  take  steps  to  recover  the  amount  involved  in  the  fraud, claim insurance wherever applicable and streamline the system as also the procedures so that frauds do not recur.
- (ii) As per RBI's circular on '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/negligence/deficiency on the part of the bank and due to third party breach with customer notifying such unauthorized  transaction to the bank  within three working  days  of  receiving communication from the bank, he/she is entitled to zero liability.   Further, on being notified  by  the  customer,  the  bank  has  to  credit  (shadow  reversal)  the  amount involved in the unauthorised electronic transaction to the customer's account within 10 working days from the date of such notification by the customer (without waiting for settlement of insurance claim, if any).
- (iii) RBI, vide its circular dated 21.6.2018 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.
- (iv) RBI has advised banks to ensure all active cards issued by them are EMV Chip and Pin-based.
- (v) Vide  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 place and/ or loss or theft of payment instrument, such as, card, etc.
- (vi) RBI is running the awareness campaign under the banner of 'RBI Kehta Hai' on safe digital banking which inter-alia include:
-  Not to share password/pin/OTP received through SMS.
-  Act swiftly on alerts received on transactions, which customer have not initiated or not authorized.
-  Practicing  safe  mobile  banking,  such  as  awareness  on  benefits  of  registering mobile number with bank for instant alerts.
-  Not storing important banking data in mobile.
-  Use only verified, secure and trusted website.
-  Avoid banking transactions on free networks,
-  Change PIN regularly.
-  Blocking  ATM  card,  Credit  Card  and  prepaid  card  immediately  if  it  is  lost  or stolen.

*****

## Annexure to Lok Sabha Unstarred Question No. 2425 for 8.7.2019

State-wise data on frauds reported under "ATM/Debit Card/Credit Card/Internet Banking" by Scheduled Commercial Banks and selected FIs based on Date of Reporting  for last 3 years

| Banks and selected FIs based on Date of Reporting for last 3 years (amount Involved Rs 1 lakh and above)   | Banks and selected FIs based on Date of Reporting for last 3 years (amount Involved Rs 1 lakh and above)   | Banks and selected FIs based on Date of Reporting for last 3 years (amount Involved Rs 1 lakh and above)   | Banks and selected FIs based on Date of Reporting for last 3 years (amount Involved Rs 1 lakh and above)   | Banks and selected FIs based on Date of Reporting for last 3 years (amount Involved Rs 1 lakh and above)   | Banks and selected FIs based on Date of Reporting for last 3 years (amount Involved Rs 1 lakh and above)   | Banks and selected FIs based on Date of Reporting for last 3 years (amount Involved Rs 1 lakh and above)   |
|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|
| State                                                                                                      | 2016-17                                                                                                    | 2016-17                                                                                                    | 2017-18                                                                                                    | 2017-18                                                                                                    | 2018-19                                                                                                    | 2018-19                                                                                                    |
|                                                                                                            | No. of Frauds                                                                                              | Amount involved (Rs. In crore)                                                                             | No. of Frauds                                                                                              | Amount involved (Rs. In crore)                                                                             | No. of Frauds                                                                                              | Amount involved (Rs. In crore)                                                                             |
| Andaman & Nicobar Islands                                                                                  | -                                                                                                          | -                                                                                                          | -                                                                                                          | -                                                                                                          | 4                                                                                                          | 0.09                                                                                                       |
| Andhra Pradesh                                                                                             | 31                                                                                                         | 0.64                                                                                                       | 5                                                                                                          | 0.16                                                                                                       | 7                                                                                                          | 0.15                                                                                                       |
| Arunachal Pradesh                                                                                          | -                                                                                                          | -                                                                                                          | 2                                                                                                          | 0.08                                                                                                       | -                                                                                                          | -                                                                                                          |
| Assam                                                                                                      | 3                                                                                                          | 0.11                                                                                                       | 68                                                                                                         | 1.37                                                                                                       | 21                                                                                                         | 0.60                                                                                                       |
| Bihar                                                                                                      | 4                                                                                                          | 0.07                                                                                                       | 5                                                                                                          | 0.13                                                                                                       | 17                                                                                                         | 0.33                                                                                                       |
| Chandigarh                                                                                                 | 7                                                                                                          | 0.19                                                                                                       | 4                                                                                                          | 0.06                                                                                                       | 9                                                                                                          | 0.18                                                                                                       |
| Chhattisgarh                                                                                               | 1                                                                                                          | 0.01                                                                                                       | 4                                                                                                          | 0.12                                                                                                       | 4                                                                                                          | 0.12                                                                                                       |
| Goa                                                                                                        | -                                                                                                          | -                                                                                                          | 2                                                                                                          | 0.04                                                                                                       | 10                                                                                                         | 0.31                                                                                                       |
| Gujarat                                                                                                    | 16                                                                                                         | 0.53                                                                                                       | 23                                                                                                         | 8.39                                                                                                       | 39                                                                                                         | 0.76                                                                                                       |
| Haryana                                                                                                    | 238                                                                                                        | 8.28                                                                                                       | 415                                                                                                        | 12.94                                                                                                      | 295                                                                                                        | 9.09                                                                                                       |

| Himachal Pradesh   | 1    | 0.02    | 2    | 0.03    | 1    | 0.01    |
|--------------------|------|---------|------|---------|------|---------|
| Jammu & Kashmir    | 1    | 0.09    | 6    | 0.19    | 2    | 0.04    |
| Jharkhand          | 9    | 0.12    | 3    | 0.04    | 14   | 0.35    |
| Karnataka          | 221  | 9.16    | 147  | 7.17    | 102  | 2.23    |
| Kerala             | 9    | 0.46    | 13   | 0.31    | 17   | 0.93    |
| Madhya Pradesh     | 4    | 0.10    | 11   | 0.61    | 11   | 0.16    |
| Maharashtra        | 379  | 12.10   | 728  | 19.54   | 638  | 15.62   |
| Manipur            | -    | -       | -    | 0.00    | 2    | 0.05    |
| Meghalaya          | -    | -       | 1    | 0.02    | 2    | 0.03    |
| Nagaland           | -    | -       | 2    | 0.03    | 1    | 0.01    |
| NCT Of Delhi       | 156  | 3.44    | 196  | 9.56    | 242  | 6.71    |
| Odisha             | 1    | 0.06    | 5    | 0.24    | 13   | 0.27    |
| Puducherry         | 2    | 0.05    | 1    | 0.02    | 1    | 0.03    |
| Punjab             | 3    | 0.27    | 23   | 0.46    | 18   | 0.39    |
| Rajasthan          | 10   | 0.16    | 13   | 0.90    | 21   | 0.84    |
| Sikkim             | -    | 0.00    | -    | -       |      |         |
| Tamil Nadu         | 208  | 4.39    | 222  | 40.85   | 214  | 10.54   |
| Telangana          | -    | -       | 54   | 3.34    | 39   | 1.33    |
| Tripura            | -    | -       | 1    | 0.02    |      | 0.00    |
| Uttar Pradesh      | 37   | 1.04    | 55   | 1.66    | 77   | 2.64    |
| Uttarakhand        | -    | -       | 11   | 0.18    | 12   | 0.19    |
| Uttaranchal        | 5    | 0.13    | -    | -       |      |         |
| West Bengal        | 19   | 0.67    | 29   | 0.98    | 28   | 17.11   |
| Overseas           | 7    | 0.22    | 8    | 0.13    | 5    | 0.26    |
| Grand Total        | 1372 | 42.2911 | 2059 | 109.561 | 1866 | 71.3791 |

Source: RBI