Digital frauds drop as banks step up vigil
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Amidst rising digital banking frauds, Reserve Bank of India is proposing ways to give solace to aggrieved customers who have lost money to scam insters unknowingly. The share of digital frauds has come down marginally partly due to the awareness programmes, yet they account for 17% of total complaints in FY25 as against 20% a year ago, RBI data showed.
Total digital banking complaints were 49,951 in FY25 against 57,242 in FY24.
Public sector banks had the most mobile or digital banking complaints accounting for 47%, or 23,633, complaints in FY25, while 18,197 complaints were from private sector banks.
Amid a wave of rising AI-generated frauds, banks and regulators are responding with strengthened security controls, multi-factor authentication, real-time fraud-monitoring systems and customer awareness campaigns. As a customer protection measure, the RBI in its February Monetary Policy announced compensation of up to Rs 25,000 for small-value payment frauds if the customers are genuinely cheated.
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