Lok Sabha Question No. 375 (UNSTARRED), answered on 2024-02-05
Subject: Losses due to Cyber Crimes
Ministry: FINANCE
Asked by: Bholanath (B.P. Saroj)

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

## LOK SABHA UNSTARRED QUESTION NO-375

ANSWERED ON - MONDAY, FEBRUARY 5, 2024/MAGHA 16, 1945 (SAKA)

## LOSSES DUE TO CYBER CRIMES

## 375. SHRI BHOLANATH (B.P. SAROJ):

Will the Minister of FINANCE be pleased to state:

- (a) the details of the total amount of financial loss caused to the nationalised and private banks due to cyber crimes during each of the last three years and the current year;
- (b) the details of the policy of the Government to reimburse the financial losses suffered by an individual due to cyber crimes, if any;
- (c) the details of the initiatives taken by the Government to create awareness against cyber crimes and also to make the condition of such crimes to be difficult; and
- (d)  whether  the  Government  has  initiated  for  insurance  cover  for  reimbursement  of  the  loss suffered due to cyber crimes and if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (DR. BHAGWAT KARAD)

- (a):  The Reserve Bank of India(RBI) has informed that they maintain data on financial frauds under the category - 'Cards/internet - credit cards, cards/internet - debit cards and cards/internet - internet banking'. As per the reporting by banks, the extent of loss (in cases involving ₹1 lakh and above) during last three Financial Years(FY) and Current Half Year(HF) is given below:
- (b):    To  help  customers  recover  loss  on  account  of  fraudulent  transactions,  RBI  has  issued instructions  on  limiting  the  liability  of  customers  in  cases  of  unauthorised  electronic  banking transactions. In cases where the deficiency lies with the bank, customer will not bear any loss if the customer reports such incident to the bank within three working days. However, customers will have to bear the loss where the deficiency lies with them. In cases where the deficiency lies neither with the bank nor with the customer but elsewhere in the system and customer reports it to the  bank  within  three  working  days  of  receiving  information  of  unauthorised  electronic

| Reporting Period   |   Extent of Loss(₹ in crores) |
|--------------------|-------------------------------|
| FY 2020-21         |                         50.1  |
| FY 2021-22         |                         80.33 |
| FY 2022-23         |                         69.68 |
| HY 2023-24         |                         36.26 |

transaction,  customer  will  not  bear  any  loss.  If  the  customer  reports  unauthorised  electronic transaction  within  4-7  working  days  where  deficiency  lies  neither  with  the  bank  nor  with  the customer but elsewhere in the system, liability of the customer shall range from Rs. 5,000 to Rs. 25,000 depending on the type of account. If customer reports unauthorised electronic transaction beyond 7 working days, the liability of customer shall be determined as per the banks' Board approved policy. In cases where the loss is due to negligence by a customer, any loss occurring after the reporting of the unauthorised transaction shall be borne by the bank. Further, the burden of proving customer liability in case of an unauthorised electronic banking transaction is on the bank.

(c): In order to facilitate the citizens to report any cyber incidents including financial frauds, the Ministry  of  Home  Affairs(MHA)  has  launched  a  National  Cybercrime  Reporting  Portal (www.cybercrime.gov.in) as well as a National Cybercrime Helpline Number '1930'. Further, customers can also report financial frauds on the official customer care website or branches of the banks.

To spread awareness against cyber-crimes, the Government has been taking various initiatives from time to time. These, inter alia ,  includes cyber safety tips through social media accounts, publishing  of  handbook  for  adolescents/students,  publishing  of  'Information  Security  Best Practices' for the benefit of government officials, organizing cyber safety and security awareness weeks in association with States/Union Territories etc.

In  addition  to  these,  RBI  and  Banks  have  also  been  taking  awareness  campaigns  through dissemination  of  messages  on  cyber-crime  through  short  SMS,  radio  campaign,  publicity  on prevention of 'cyber-crime'. Further, RBI has been conducting electronic-banking awareness and training  (e-BAAT)  programmes  which  focuses, inter  alia, awareness  about  frauds  and  risk mitigation.

(d):  Insurance  Regulatory  and  Development  Authority  of  India  (IRDAI)  has  informed  that currently  all  major  insurance  companies  are  offering  cyber  insurance  products  to  commercial entities (including banks) and individual customers.

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