Lok Sabha Question No. 728 (UNSTARRED), answered on 2022-12-12
Subject: ATM Fraud Cases
Ministry: FINANCE
Asked by: Manoj Rajoria, Ranjeeta Koli, Uday Pratap Singh, Rahul Kaswan, Sumedhanand Saraswati, Balak Nath

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## LOK SABHA UNSTARRED QUESTION NO-

## †728

ANSWERED ON- 12/12/2022

## ATM FRAUD CASES

†7 28. DR. MANOJ RAJORIA SHRIMATI RANJEETA KOLI SHRI UDAY PRATAP SINGH SHRI RAHUL KASWAN SHRI SUMEDHANAND SARASWATI SHRI BALAK NATH

Will the Minister of FINANCE be pleased to state:-

(a) whether the Government has taken cognizance of the increasing number of ATM fraud cases by way of cloning ATM cards, tracking its PIN & OTP and other methods in the country;

(b) if  so,  the  details  thereof  including  the  number  of  complaints  received  in  this  regard  during each of the last two years, State and bank-wise including Alwar, Sikar, Karauli-Dholpur, Bharatpur districts in Rajasthan;

(c) whether the Government has taken any concrete steps to stop cyber-fraud; 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', the amount involved in such frauds, based on the year of occurrence, has declined from Rs. 116 crore in the financial year 2019-20 to Rs. 76 crore in the financial year 2020-21 {year-on-year (Y-o-Y) decline of 34.5%} and to Rs. 68 crore in the financial year 2021-22 (Y-o-Y decline of 10.5%).

The National Crime Records Bureau (NCRB) collects data for crime in India from States and Union Territories, and publishes the same periodically. NCRB has informed that the bank-wise details regarding complaints received under the category 'ATM frauds' is not maintained by it. However,  state-wise  details  of  complaints  registered under  the  category  'ATM  frauds'  is  at Annex-1 and  complaints  registered  in  Alwar,  Bharatpur,  Dholpur,  Sikar,  Karauli,  districts  in Rajasthan are at Annex-2.

Comprehensive  steps  taken  in  order  to  strengthen  security  of  digital  transactions  and  to  stop cyber-frauds include, inter alia, the following:

- (i) RBI has issued a comprehensive circular in June' 2016 on Cyber Security Framework in Banks. As per this circular, banks were advised to  put in place a board-approved cybersecurity policy elucidating the strategy containing an appropriate approach to combat cyber threats given the level of complexity of business and acceptable levels of risk.
- (ii) RBI has  issued  Guidelines  dated  31.12.2019  on  Cyber  Security  Controls  for  third  party ATM Switch Application Service Providers (ASPs).
- (iii) 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.
- (iv) Ministry of Home Affairs has launched a National Cyber Crime Reporting Portal to enable public to report incidents pertaining to all types of cybercrimes.
- (v) The  Indian  Computer  Emergency  Response  Team  (CERT-IN)  under  the  Ministry  of Electronics and Information Technology issues alerts and advisories regarding latest cyber threats and countermeasures on regular 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.
- (vi) The Indian Cyber Crime Coordination Centre (I4C), working under the Ministry of Home Affairs  has  operationalised  Financial  Cyber  Fraud  Reporting  and  Management  System module, for immediate reporting of financial frauds and to stop siphoning-off of funds by the fraudsters.
- (vii) A  toll-free  number  has  also  been  operationalised  to  get  assistance  in  lodging  online complaints regarding cybercrimes.

In  addition  to  this,  a  number  of  steps  have  been  taken  to  enhance  security  of  digital  payment transactions,  including  those  of  card  transactions,  online  transactions etc. ,  and  to  reduce  online banking frauds 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; and
- (ix) issuing alerts upon addition of beneficiaries.

In addition, several other initiatives have also been taken to spread awareness on prevention of cyber-crimes. These initiatives include, dissemination of messages on cyber-crime through short message service (SMS), radio campaigns, publicity on prevention of cyber-crime and cyber safety tips  through  social  media  accounts  of  the  Indian  Cybercrime  Coordination  Centre  (I4C), conducting of electronic-banking awareness and training (e-BAAT) programmes by RBI etc .

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## Lok Sabha Unstarred question no. 728, regarding ' ATM FRAUD CASES '

## Details of State/UT-wise Cases Registered, under ATM Fraud for Cyber Crimes during 2020-2021

| State/UT                   |   2020 |   2021 |
|----------------------------|--------|--------|
| Andhra Pradesh             |     54 |     62 |
| Arunachal Pradesh          |      0 |      0 |
| Assam                      |     10 |      5 |
| Bihar                      |    642 |    775 |
| Chhattisgarh               |      2 |      5 |
| Goa                        |      0 |      0 |
| Gujarat                    |     63 |     28 |
| Haryana                    |      0 |      0 |
| Himachal Pradesh           |      0 |      0 |
| Jharkhand                  |     21 |     25 |
| Karnataka                  |      0 |      0 |
| Kerala                     |      3 |      2 |
| Madhya Pradesh             |     10 |     12 |
| Maharashtra                |    324 |    104 |
| Manipur                    |      0 |      0 |
| Meghalaya                  |      0 |      0 |
| Mizoram                    |      0 |      0 |
| Nagaland                   |      0 |      0 |
| Odisha                     |    362 |    217 |
| Punjab                     |      2 |      1 |
| Rajasthan                  |    117 |     76 |
| Sikkim                     |      0 |      0 |
| Tamil Nadu                 |      1 |     16 |
| Telangana                  |    315 |    443 |
| Tripura                    |      0 |      0 |
| Uttar Pradesh              |    203 |     93 |
| Uttarakhand                |      0 |      0 |
| West Bengal                |     31 |     34 |
| A&N Islands                |      0 |      0 |
| Chandigarh                 |      0 |      0 |
| D&N Haveli and Daman & Diu |      0 |      0 |
| Delhi                      |      0 |      0 |
| Jammu & Kashmir            |      0 |      1 |
| Ladakh                     |      0 |      0 |
| Lakshadweep                |      0 |      0 |
| Puducherry                 |      0 |      0 |

Source: NCRB

## Lok Sabha Unstarred question no. 728, regarding ' ATM FRAUD CASES '

## Number of Cases Registered under ATM Fraud in the mentioned districts of Rajasthan during 2020 and 2021

| District   |   2020 |   2021 |
|------------|--------|--------|
| Alwar      |     23 |     39 |
| Bharatpur  |      0 |      0 |
| Bhilwara   |      0 |      0 |
| Dholpur    |      0 |      0 |
| Karauli    |      0 |      0 |
| Sikar      |     61 |     25 |

Source: NCRB

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