Lok Sabha Question No. 1195 (UNSTARRED), answered on 2025-07-28
Subject: Incidents of ATM Theft/Fraud
Ministry: FINANCE
Asked by: Dr. Bachhav Shobha Dinesh

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

## LOK SABHA UNSTARRED QUESTION NO- 1195

ANSWERED ON MONDAY, JULY 28, 2025/ SRAVANA 6, 1947 (SAKA)

## Incidents of ATM Theft/Fraud

## 1195. DR. BACHHAV SHOBHA DINESH

Will the Minister of FINANCE be pleased to state:-

(a) whether the Government has taken cognisance of Report of Reserve Bank of India on Trend and Progress of Banking in India 2023-24 which stipulates that total frauds during April-September stood at  18,461  involving  Rs.  21,367  crore  compared  to  14,480  cases  involving  Rs.  2,623  crore  in  the comparative period of last financial year;

(b) whether any remedial measures have been taken by the Government to check increasing incidents of ATM theft;

(c) whether the Government has taken cognisance of increasing trend of ATM card skimming fraud in which criminals use a device to steal credit or debit card information from ATM users;

(d)  if  so,  whether  the  Government  has  taken  any  remedial  measures  in  this  regard  and  if  so,  the details thereof; and

(e) whether the Government has issued any directive mandating all banks to enforce extra security measures to prevent ATM skimming and if so, the details thereof and if not, the reasons therefor?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (SHRI PANKAJ CHAUDHARY)

(a): As per Reserve bank of India (RBI) report on Trend and Progress of Banking in India 2023-24, frauds based on the date of reporting, involving amount Rs. 1 lakh and above, the number of fraud cases during April-September (2024-25) stood at 18,461 involving Rs. 21,367 crore as compared to 14,480 cases involving Rs. 2,623 crore for April-September (2023-24).

The  increase  in  frauds  during  the  half  year  (April-September)  2024-25  is  mainly  due  to  reexamination  and  reporting  afresh  59  fraud  cases  involving  Rs.  9,997  crore,  pertaining  to  previous financial  years  which  were  earlier  withdrawn  by  banks  due  to  noncompliance  of  the  Hon'ble Supreme Court judgement dated March 27, 2023, and have been re-examined and reported afresh by banks during the current financial year after ensuring compliance with the above judgement.

As per RBI data, frauds based on the date of occurrence, involving Rs. 1 lakh and above, the number for FY 2023-24 stood at 34,121 cases involving an amount of Rs. 4,893 crore which decreased to 10,175 cases involving an amount of Rs. 1,037 crore for FY 2024-25. Thus, there is a declining trend in fraud occurred in the last 2 years.

(b): RBI, vide the circular on 'Control measures for Automated Teller Machines (ATMs) -Timeline for compliance' dated 21.6.2018, advised banks to take various measures to strengthen security of ATMs. These measures, inter alia include - enabling Basic Input Output System (BIOS) passwords, disabling Universal Serial Bus (USB) ports, disabling auto-run facility, applying the latest patches of operating system and other software, terminal security solution, time-based admin access, implementing  anti-skimming  and  whitelisting  solution,  upgrading  ATMs  to  supported  versions  of operating system, etc .

RBI has advised banks from time to time to review and strengthen the security arrangements at their branches  and  ATMs  to  deal  with  instances  of  robbery etc .  and  for  dealing  with  risk  perceptions emerging from such incidents. These include coverage of ATM sites by Closed-Circuit Televisions (CCTVs), verification of credentials of private security guards, ensuring adequate training of security staff posted at ATMs, etc .

Banks are required to submit a quarterly Return on theft (including ATM theft) to Department of Supervision, RBI. The data thus collected is shared with Regional Offices of RBI, and the matter is discussed  with  respective  State  authorities  during  the  State  Level  Security  Committee  (SLSC) meetings.

(c):  As per RBI annual report 2024-25, frauds under the category of digital payment (card/internet) based on the date of reporting, involving Rs. 1 lakh and above, the number for FY 2023-24 stood at 29,082 cases involving an amount of Rs. 1,457 crore which decreased to 13,516 cases involving an amount  of  Rs.  520  crore  for  FY  2024-25.  Thus,  there  is  a  declining  trend  in  card/internet  fraud reported in the last 2 years.

(d)  and (e): As a risk  mitigation measure, RBI has issued guidelines to all Regulated entities (REs) regarding migration from magnetic stripe cards to EMV chip and pin-based cards.

Banks  in  India  and  the  White  Label  ATM  operators  were  advised  to  ensure  that  all  the  existing ATMs  installed/operated  by  them  are  enabled  for  processing  of  EMV  Chip  and  PIN  cards  by September 30, 2017. All new ATMs shall necessarily be enabled for EMV Chip and PIN processing from inception.

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

- RBI has issued  Guidelines  dated  31.12.2019  on  Cyber  Security  Controls  for  third  party  ATM Switch Application Service Providers (ASPs).
- 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.
- In terms of RBI circular CO.DPSS.POLC.No. S-227 / 02-10-002/ 2022-23 dated May 19, 2022, all banks, ATM networks and White Label ATM Operators (WLAOs) may provide the option of Interoperable Card-less Cash Withdrawal (ICCW) at their ATMs. The absence of need for a card to  initiate  cash  withdrawal  transactions  would  help  in  containing  frauds  like  skimming,  card cloning, device tampering, etc .
- Display of posters in bank ATMs and branches to spread awareness against frauds.
- 24x7  access  through  multiple  channels  ( via website,  phone  banking,  Short  Message  Service (SMS), e-mail, Interactive Voice Response (IVR), toll-free helpline, reporting to home branch, etc .)  for  reporting  unauthorized  transactions  that  have  taken  place  and/  or  loss  or  theft  of payment instrument, such as, card, etc.