Lok Sabha Question No. 2241 (UNSTARRED), answered on 2021-08-02
Subject: Cases of Fraud Transactions
Ministry: FINANCE
Asked by: P. C. Mohan

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## LOK SABHA UNSTARRED QUESTION NO-2241

ANSWERED ON- 02/08/2021

## CASES OF FRAUD TRANSACTIONS

## 2241. SHRI P.C. MOHAN

Will the Minister of FINANCE be pleased to state:-

- a) whether it is true that with the incteasing digitalisation in the countty, there is steady increase in the cases of fraud in transactions;
2. () if so, the details of losses incurred due to increasing fraud cases, Statewise; and cyber
3. the action taken by the Government to stop such actions and the results of such steps?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

(DR BHAGWAT KARAD)

- (a) and (): As per Reserve Bank of India   (RBI) data on frauds   reported by Scheduled Commercial Banks under the category Card / Internet-  ATM/Debit Cards, Credit Cards and Internet Banking ', the amount involved in such frauds, based on the year of occurrence, has declined by 23.8% the financial year 2020-21 from such amount for the preceding financial year: during
- (c): A number of measures have been taken to prevent cyber frauds, including, inter alia the following:
- A National Cyber Crime Reporting Portal has been launched to enable public to of  cybercrimes, and a toll-free number has also been operationalised to assistance in lodging  online complaints: get
- (1) Indian Cyber Crime Coordination Centre has been established to provide a framework and ecosystem for law enforcement agencies (LEAs) for dealing with cybercrimes (including frauds related to credit catds, debit catds, online banking, etc:) in a comprehensive and coordinated manner:
- (3) Financial Cyber Fraud Reporting and Management System module has been launched for immediate reporting of financial frauds and to stop siphoning-off of funds by the fraudsters.
- The Indian   Computer Emergency Response Team (CERT-IN) issues alerts and advisories regarding latest threats and countermeasures on basis to ensure safe usage of digital technologies, and is working in coordination with service providers, regulators and LEAs to track and disable phishing websites and facilitate investigation of fraudulent activities cyber regular
- 6) RBI has advised banks to have in a Board-approved cyber-security policy elucidating the strategy containing an appropriate approach to combat threats. place cyber
- (5) CERT-In is providing the requisite leadership for the CSIRT-Fin (Computer Security Incident Response Team-Finance Sector) operations under its umbrella for responding containment and  mitigation of security incidents reported from the financial sector: cyber to,

In addition; to protect customers from fraud in  digital  transaction; has advised banks to take, inter the following secutity and risk mitigation measures: RBI, alia,

- (2) Capping the value mode of transactions /beneficiaries, setting daily limits and alerts upon addition of beneficiaries; issuing
- (1) For securing card transactions, inclusive of online alerts for all transactions, certification of merchant terminals, and conversion of magnetic strip cards to EMV and PIN cards; chip
- (3) Requiring PIN entry for all ATM transactions, and enabling all ATMs for processing EMV and PIN cards; chip
4. For securing Prepaid Payment Instruments (PPIs) also referted to as wallets informing customers in case the same login is provided for PPI and other services offered by PPI issuers, restrictions on multiple invalid attempts to into PPI and introducing time-out features, authenticating every wallet payment transaction by customer consent; in additional factor of authentication for debit cards, provision of customer-induced options for capping the number and value of transactions, provision of suitable cooling funds transfer on opening of PPI, and issue of alerts for PPI transactions; and having log period for
5. To ensure that all new debit and credit cards are issued only for domestic usage unless international use is specifically by the customer: sought