Financial Fraud Rages On Despite Rbi’S Best Efforts — Read Shocking Details Of Survey | #cybersecurity | #cyberattack

By  IST (Updated)


The LocalCircles survey revealed that 29% Indians share their ATM or debit card pin details with close family members, while 4% share it with their domestic and office staff. No wonder around 42% of those surveyed reported falling victim to sophisticated cyber criminals.

Despite all its benefits, the digitisation of payments and banking has led to a rise in financial frauds as cyber criminals now have more ways to obtain personal financial data, such as details of debit and credit cards.

Citizens have become victims of sophisticated and coordinated financial frauds on multiple occasions, with hackers cleverly committing forgeries or misrepresentation to obtain and access citizen’s personal data, banking details, and even snoop into their devices, including email and social media accounts. 

The Reserve Bank of India (RBI) data shows that frauds of Rs 60,414 crore were seen in 2021-22. Collectively, the bank frauds have resulted in India losing at least Rs 100 crore every day over the past seven years. According to the Microsoft 2021 Global Tech Support Scam Research report, consumers in India experienced a fairly high rate of online fraud of 69 percent in 2021.

To curb the menace, many efforts have been made by the RBI through financial inclusion, financial literacy and financial security.  Despite these efforts, financial experts state that people continue to fall victim to the most common tools used by hackers like phishing, vishing, frauds using online sales platforms, unverified mobile apps, ATM card skimming, SIM swap or SIM cloning among others.

The LocalCircles survey in October 2021 revealed that 29 percent of citizens share their ATM or debit card pin details with close family members, while 4 percent share it with their domestic and office staff.

The survey also revealed that 33 percent of citizens store their bank account, debit or credit card and ATM passwords, Aadhaar and PAN details on emails or their computers, while 11 percent of citizens have stored these details in their mobile phone contact list. 

To understand the magnitude of the fraud, LocalCircles conducted a bottoms-up survey asking people if they or their family members have fallen victim to financial fraud in the last three years and also the nature of frauds they experienced. 

42% fall victim to frauds

The first question in the survey was, ‘Have you or someone in your immediate family been a victim of financial fraud in the last 3 years?’

Out of 11,065 responses, 54 percent of citizens responded ‘no one.’ However, 4 percent said ‘Yes, multiple members,’ and 38 percent revealed ‘Yes, one of us in the family.’ Only 4 percent couldn’t say.

On an aggregate basis, 42 percent of those surveyed say they or someone in their family have been victims of financial fraud in the last three years. 

Most common frauds

To the question on the nature of the financial frauds, 29 percent respondents to the survey said ‘bank account fraud,’ 24 percent said ‘fraud by e-commerce sites,’ and 21 percent said ‘other frauds.’

Breaking down the poll, 18 percent said ‘credit or debit card fraud,’ 12 percent said ‘fraud by mobile apps,’ 8 percent said ‘ATM card fraud,’ and 6 percent said ‘insurance fraud,’ while 3 percent did not respond.

This question received 9,936 responses.

Only 17% were able to get their funds back

To the final question in the survey — ‘For the different financial frauds you or someone in your immediate family has experienced in the last 3 years, did you get your money back?’ 

In response, 10 percent said ‘Yes, filed a complaint with the platform and got it back,’ and 7 percent said ‘Yes, filed a complaint with authorities and got it back.’ However, 36 percent said ‘No, the matter is still pending,’ 19 percent said ‘No, there was nowhere to go,’ and another 19 percent said ‘No, decided to not file a complaint.’

The remaining 9 percent respondents were noncommittal. This question received 10,995 responses. Of the families who experienced financial fraud in the last three years, only 17 percent were able to get their funds back while 74 percent could not get any resolution.

The survey received nearly 32,000 responses from citizens across 301 districts of India. Of the total, 62 percent respondents were men and rest were women. Around 43 percent respondents were from tier 1 cities, 30 percent from tier 2 and remaining 27 percent respondents were from tier 3, 4 cities and rural districts.


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