Bank and net card fraud increased by 50%, Delhi is an ATM with capital

NEW DELHI: Cases of illegal transactions involving Internet banking, ATMs and credit and debit cards skyrocketed more than 50% to cross 52,000 in 2018-19, with Delhi being the capital of ATM fraud that accounts for almost 27% of reported cases of cash diversion.

In response to the questions, the government told Parliament that the amount involved in such incidents, however, has dropped (see chart).

However, the number of ATM frauds in public sector banks was more revealing. While, with more than 58,000 ATMs across India at the end of March 2019, they accounted for more than 25% of cash dispensers of more than 2 lakhs, one in five frauds was reported at their ATMs.

But second place IDBI Bank , which had 3,700 ATMs according to its website, saw about 1,800 reported frauds. Therefore, its participation in the ATM population was estimated at 1.8%, but when it came to reported fraud, it represented 15% of the pie between April 2017 and March 2019.

While the government did not reveal the reasons for the frauds, bankers said India is seeing an increase in the number of such attempts while trying to expand its infrastructure to protect itself. We are seeing a massive influx of scammers from foreign countries as the infrastructure in Europe has improved, making life difficult for them, said a banker. A banker said cameras are being deployed on the ATM keyboard and other techniques, often using malware , are being used by skimmers and scammers to disburse funds using net banking.

RBI has issued detailed rules to improve infrastructure through the introduction of anti-skimming solutions, whitelists and software updates, as well as asking banks to issue only chip-based cards and PINs. But it is considered that banks take time to respond to the challenges, even in updating the ATM network.