Lok Sabha Question No. 1974 (UNSTARRED), answered on 2023-03-13
Subject: ATM Frauds
Ministry: FINANCE
Asked by: Rahul Kaswan

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## LOK SABHA UNSTARRED QUESTION NO-† 1974

ANSWERED ON- 13/03/2023

## ATM FRAUDS

† 1974. SHRI RAHUL KASWAN

Will the Minister of FINANCE be pleased to state:-

- (a) whether it is a fact that there has been a big surge in the cases of criminal fraud and deceit involving gaining illegal access to PIN numbers, change of ATM cards and other means in the country;
- (b) if so, the details thereof during the last two years, bank-wise, State-wise including in Rajasthan;
- (c) whether  the  Government  has  taken  any  action  to  control  such  cases  of  fraud  and deceit; and
- (d) if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

(DR. BHAGWAT KARAD)

(a)  to  (d): As  per  Reserve  Bank  of  India  (RBI)  data  on  frauds  reported  by  Scheduled Commercial Banks (SCBs) under the category ' Card/Internet-ATM/Debit Cards, Credit Cards  and  Internet  Banking ', the  number  of  such  frauds,  based  on  the  year  of occurrence, has year-on-year (Y-o-Y) decline by 4.56% in the financial year 202021 and further decline by 7.9% in the financial year 2021-22. Bank-wise and Statewise details of such frauds, by the year of occurrence, for the last two financial years are at Annex-1 and Annex-2 .

Comprehensive steps have been taken to enhance security of digital payment transactions, including those of card transactions, online transactions etc. ,  and to reduce ATM banking frauds which include, inter alia , the following -

1. RBI  has  issued  Master  Direction  on  Digital  Payment  Security  Controls  on 18.2.2021. As per this direction, banks have been advised to put in place necessary controls  to  protect  the  confidentiality  and  integrity  of  customer  data,  and processes associated with the digital product/services offered by them.
2. RBI has issued Guidelines dated 31.12.2019 on Cyber Security Controls for third party ATM Switch Application Service Providers (ASPs).
3. Display  of  posters  in  bank  ATMs  and  branches  to  spread  awareness  against frauds.
4. 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.
5. For immediate reporting of Cyber Crime /financial frauds and to stop siphoningoff of funds by the fraudsters, Financial Cyber Fraud Reporting and Management System module has been made operational by the Indian Cyber Crime Coordination Centre, working under the Ministry of Home Affairs.
6. A National Cyber Crime Reporting Portal has been launched by the Ministry of Home  Affairs  to  enable  public  to  report  incidents  pertaining  to  all  types  of cybercrimes, and a toll-free number has also been operationalised to get assistance in lodging online complaints.

In addition to this, several other initiatives have also been taken which include, inter alia , the following -

- (i) enabling all ATMs for processing EMV chip and PIN cards;
- (ii) mandating PIN entry for all ATM transactions;
- (iii) conversion of magnetic strip card to EMV chip and PIN cards;
- (iv) restricting  international  usage  by  default  and  enablement  of  the  same  only  after specific mandate from the customer;
- (v) certification of merchant terminals;
- (vi) Capping the value/mode of transactions/beneficiaries;
- (vii) mandating enablement of online alerts for all transactions;
- (viii) setting daily limits on transaction amount.

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## Lok Sabha Unstarred question no. 1974, regarding ATM Frauds

## Details of Frauds in scheduled commercial banks during the financial year 2020-21 and2021-22 in category of 'Card/Internet -ATM/Debit Cards, Credit Cards and Internet Banking', by the year of occurrence

Amounts in crore Rs.

|                                           | FY 2020-21   | FY 2020-21      | FY 2021-22   | FY 2021-22      |
|-------------------------------------------|--------------|-----------------|--------------|-----------------|
| Bank                                      | Number       | Amount involved | Number       | Amount involved |
| Airtel Payments Bank Limited              | 2            | 0.01            | --           | --              |
| American Express Banking Corp.            | 1,808        | 12.73           | 2,258        | 5.83            |
| AU Small Finance Bank Limited             | --           | --              | 6            | 0.05            |
| Axis Bank Limited                         | 5,407        | 32.38           | 6,124        | 25.07           |
| Bandhan Bank Limited                      | 135          | 0.35            | 189          | 0.51            |
| Bank of America, National Association     | 71           | 0.12            | 16           | 0.02            |
| Bank of Bahrain and Kuwait BSC            | 4            | 0.01            | 1            | 5.44            |
| Bank of Baroda                            | 5            | 1.11            | 6            | 0.91            |
| Bank of India                             | --           | --              | 1            | 0.10            |
| Bank of Maharashtra                       | --           | --              | 4            | 0.12            |
| Canara Bank                               | 2            | 1.29            | 1            | 0.22            |
| Capital Small Finance Bank Limited        | 25           | 0.06            | 16           | 0.07            |
| Catholic Syrian Bank Limited              | 20           | 0.03            | 3            | 0.01            |
| Central Bank of India                     | 842          | 3.47            | 1,104        | 4.95            |
| Citibank N.A                              | 1,110        | 5.48            | 1,182        | 6.75            |
| City Union Bank Limited                   | 256          | 0.77            | 25           | 0.06            |
| DBS Bank India Limited                    | 160          | 0.22            | 89           | 0.09            |
| DCB Bank Limited                          | 73           | 0.53            | 38           | 0.12            |
| Deutsche Bank Ag                          | 24           | 0.10            | 101          | 0.32            |
| Doha bank Qsc                             | 1            | 0.01            | --           | --              |
| Equitas Small Finance Bank Limited        | 8            | 0.12            | 11           | 0.02            |
| ESAF Small Finance Bank Limited           | 3            | 0.00            | 1            | 0.00            |
| Federal Bank Limited                      | 282          | 0.63            | 305          | 0.54            |
| Fincare Small Finance Bank Limited        | 7            | 0.01            | --           | --              |
| HDFC Bank Limited                         | 3,834        | 12.96           | 3,866        | 10.61           |
| Hongkong And Shanghai Banking Corporation | 2,681        | 5.91            | 2,241        | 5.41            |
| Limited ICICI Bank Limited                | 1,390        | 32.67           | 5,002        | 34.39           |
| IDBI Bank Limited                         | 1,729        | 5.00            | 1,552        | 5.78            |
| IDFC First Bank Limited                   | 176          | 0.50            | 130          | 0.25            |
| Indian Bank                               | 86           | 0.36            | 107          | 0.32            |
| Indian Overseas Bank                      | 73           | 0.18            | 232          | 0.59            |
| Indusind Bank Limited                     | 139          | 5.96            | 1,045        | 23.56           |
| Jana Small Finance Bank Limited           | 2            | 0.00            | 1            | 0.37            |
| Jpmorgan Chase Bank National Association  | 1            | 0.49            | --           | --              |
| Karnataka Bank Limited                    | 50           | 0.71            | --           | --              |
| Kotak Mahindra Bank Limited               | 45,773       | 64.23           | 33,296       | 57.72           |
| Lakshmi Vilas Bank Limited                | 2            | 0.03            | --           | --              |
| Nsdl Payments Bank Limited                |              |                 | 1            | 0.00            |
| Paytm Payments Banks Limited              | 4            | 0.00            | 7            | 0.02            |

|                                     | FY 2020-21   | FY 2020-21      | FY 2021-22   | FY 2021-22      |
|-------------------------------------|--------------|-----------------|--------------|-----------------|
| Bank                                | Number       | Amount involved | Number       | Amount involved |
| Punjab and Sind Bank                | 88           | 0.45            | 55           | 0.14            |
| Punjab National Bank                | 271          | 2.56            | 7            | 0.15            |
| RBL Bank Limited                    | 254          | 1.35            | 1,944        | 5.15            |
| Shinhan Bank                        | 1            | 0.01            | 1            | 0.01            |
| South Indian Bank Limited           | 418          | 2.71            | 359          | 2.09            |
| Standard Chartered Bank             | 627          | 6.33            | 2,228        | 5.25            |
| State Bank of India                 | 1,993        | 22.03           | 1,187        | 22.62           |
| Suryoday Small Finance Bank Limited | 3            | 0.00            | --           | --              |
| Tamilnad Mercantile Bank Limited    | 19           | 0.37            | 8            | 0.06            |
| The Dhanalakshmi Bank Ltd           | 16           | 0.05            | 4            | 0.01            |
| UCO Bank                            | 4            | 0.01            | --           | --              |
| Ujjivan Small Finance Bank Limited  | 2            | 0.01            | 3            | 0.01            |
| Union Bank of India                 | 478          | 1.55            | 91           | 0.40            |
| Yes Bank Limited                    | 299          | 0.73            | 200          | 0.34            |

Source: RBI

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## Lok Sabha Unstarred question no. 1974, regarding ATM Frauds

State wise details of Frauds during the financial year 2020-21 and 2021-22 in category of 'Card/Internet -ATM/Debit Cards, Credit Cards and Internet Banking', by the year of occurrence

Amounts in crore Rs.

|                             | FY 2020-21   | FY 2020-21      | FY 2021-22   | FY 2021-22      |
|-----------------------------|--------------|-----------------|--------------|-----------------|
| State/Union- Territory      | Number       | Amount involved | Number       | Amount involved |
| Andaman and Nicobar Islands | 3            | 0.01            | --           | --              |
| Andhra Pradesh              | 706          | 1.88            | 541          | 2.60            |
| Arunachal Pradesh           | 6            | 0.01            | 2            | 0.00            |
| Assam                       | 165          | 0.95            | 151          | 1.24            |
| Bihar                       | 891          | 3.13            | 936          | 3.94            |
| Chandigarh                  | 284          | 0.83            | 217          | 1.20            |
| Chhattisgarh                | 173          | 0.61            | 188          | 4.89            |
| Dadra and Nagar Haveli      | 67           | 0.17            | 61           | 0.17            |
| Goa                         | 133          | 0.42            | 189          | 0.69            |
| Gujarat                     | 4,715        | 15.39           | 2,883        | 8.22            |
| Haryana                     | 5,724        | 23.52           | 5,508        | 16.43           |
| Himachal Pradesh            | 136          | 0.44            | 118          | 0.71            |
| Jammu & Kashmir             | 50           | 0.19            | 69           | 0.64            |
| Jharkhand                   | 244          | 1.36            | 255          | 1.10            |
| Karnataka                   | 4,146        | 15.35           | 2937         | 10.88           |
| Kerala                      | 641          | 3.27            | 681          | 2.87            |
| Ladakh                      | 4            | 0.02            | 3            | 0.02            |
| Madhya Pradesh              | 776          | 2.72            | 769          | 4.45            |
| Maharashtra                 | 26,844       | 75.70           | 26,085       | 74.62           |
| Manipur                     | 6            | 0.03            | 5            | 0.03            |
| Meghalaya                   | 15           | 0.05            | 12           | 0.09            |
| Mizoram                     | --           | --              | 2            | 0.01            |
| Nagaland                    | 3            | 0.01            | 5            | 0.03            |
| NCT of Delhi                | 8,003        | 22.09           | 8,075        | 24.35           |
| Odisha                      | 259          | 5.74            | 323          | 1.73            |
| Puducherry                  | 20           | 0.03            | 15           | 0.07            |
| Punjab                      | 1,027        | 2.40            | 1,010        | 5.74            |
| Rajasthan                   | 1,234        | 4.97            | 944          | 6.66            |
| Sikkim                      | 17           | 0.05            | 7            | 0.01            |
| Tamil Nadu                  | 5,700        | 16.47           | 5,322        | 17.26           |
| Telangana                   | 2,781        | 6.31            | 2,077        | 12.49           |
| Tripura                     | 23           | 0.05            | 7            | 0.01            |
| Uttar Pradesh               | 4,079        | 12.11           | 4,151        | 16.10           |
| Uttarakhand                 | 232          | 1.55            | 246          | 0.73            |
| West Bengal                 | 1,548        | 8.74            | 1,251        | 6.39            |

Source: RBI

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