Banking Fraud: Types, Fraud Cases, Detection, Prevention, Complaint

The cases of banking fraud are increasing day by day. Due to this, people and businesses are losing money. Today fraudsters use various tricks to steal money. Customers and banks can prevent this by staying alert. They should know about the preventive measures to protect their money.

Banks also need to use strong security to prevent fraud. They should use fraud detection tools and educate customers about safe banking practices.

This blog explains about the banking fraud, types, cases, statistics, and how to file a complaint. It also provides useful tips to stay safe from fraud.

What is Banking Fraud?

Banking Fraud is an illegal act of stealing money or sensitive information from the bank and customers. Fraudsters use various methods like phishing, identity theft, loan scams, and online fraud.

Types of Banking Fraud

• Online Banking Fraud: In this kind of fraud, fraudsters use malware attacks, phishing emails, and fake apps. This helps them steal logins, passwords, and other details. When people click on links, they are redirected to fraudulent websites.
• Card Fraud: This includes skimming (which means copying card details via hidden devices), and OTP fraud (tricking people into sharing OTPs from unauthorized transactions). It also involves stealing card details for fraudulent purchases.
• Loan Frauds: Criminals can use fake loan approval schemes, counterfeit documents, or stolen identities to get loans illegally. 
• Accounting fraud: It refers to the misrepresentation of financial data by a bank. In this kind of fraud, banks manipulate financial statements.
• Cheque Frauds: This scam involves forging signatures, altering cheque details, or issuing bounced cheques to deceive banks and customers.
• Identity Theft: In this scam, fraudsters steal personal details of individuals such as Aadhaar and PAN details. They use this data to commit financial fraud and other illegal activities.

Banking Fraud Cases in India

Rupees 122 crore bank fraud in Mumbai 2025

The General Manager and Head of Accounts at New India Cooperative Bank, along with associates, are accused of embezzling Rs 122 crore from the bank. The Economic Offences Wing (EOW) of Mumbai police is currently investigating the case. It was filed under criminal breach of trust and conspiracy. The RBI has restricted customers from withdrawing money from the bank and took control by replacing a board member for a year. They also appointed an administrator to manage the bank.

The Acting CEO reported that the General Manager and others worked together to steal money from the safes in 2 bank branches. Afraid the customer went to the bank but no longer has access. This bank has 28 branches in Mumbai with additional branches in Surat and Pune.

Bank Fraud Case in Bengaluru – Rs 12.51 Crore Stolen 2025

Axis bank manager along with four people, was arrested for stealing Rupees 12.51 crore from CRED’s bank accounts in Bengaluru. They forged corporate banking forms, and duplicated signatures. It steals to transfer the money to 17 bank accounts in Gujarat and Rajasthan. Bengaluru police arrested the suspects, recovering rupees 1.28 crore and freezing rupees 55 lakh. The investigation is ongoing as more suspects are still to be identified.

Banking Fraud Detection Methods

These are some methods that can help in fraud prevention:

• Monitor Transactions: Banks should monitor transactions to find unusual patterns or unauthorized activities. They should be careful about suspicious activities like frequent password changes. It helps prevent money laundering and terrorist financing.
• Anomaly Detection: Anomaly detection is the process of identifying deviations from normal transaction behavior. Any transaction that does not match with customer spending habits. It flagged this unusual activity for further investigation.
• Real-time Alerts: Banks can send instant alerts through SMS, email, or app notifications when suspicious transactions occur. This helps customers to take immediate action. 
• Artificial Intelligence: Artificial Intelligence can process vast amounts of transaction data to identify fraudulent activities. 
• Behavioural Analytics: Behavioural Analytics work examines user behavior, like login patterns, transaction frequency, and device usage. Any unusual behavior, like accessing an account from a new device or location. It will indicate security protocols.
• Identity Verification: Identity verification is a crucial process before processing transactions. Banks can use multi-factor authentication (MFA), OTPs, and document verification to ensure that only authorized users can access accounts.
• Biometric Authentication: Banks and financial institutions can use biometric authentication methods like fingerprint scans, facial recognition, and voice recognition to enhance security. 

How to File an Online Banking Fraud Complaint?

If you suspect banking fraud, just follow these steps to file a banking fraud complaint.

Contact Your Bank Immediately

• Call your bank’s customer care or you can visit the nearest branch.
• Provide transaction details and request the bank to block your account or card, if necessary.

Lodge a Complaint via Official Channels

• Use your bank’s online fraud complaint portal or mobile app.
• Email the bank’s grievance redressal officer with fraud details.

Report to the Cyber Crime Portal

• Visit cycbercrime.gov.in and file a complaint.
• You can make a call on the Cyber Crime Helpline (1930).

File a Complaint with RBI

If your bank does not take action to solve your complaint, escalate it to RBI Banking Ombudsman at www.rbi.org.

Banking Fraud Complaint Numbers and Helpline

• National Cyber Crime Helpline: 1930
• RBI’s Ombudsman Helpline: 14440
• Bank-Specific Helplines: Check your bank’s official website.

Prevention Tips You Should Follow

You can protect yourself from banking fraud by following practices:

• It is good to use strong passwords and update your password regularly. It makes it difficult for fraudsters to steal your password and use it for illicit purposes.
• Do not use public Wi-Fi for online transactions and for doing anything important where you need to share your personal and financial data.
• Make it a habit to log out from the banking portal and website after completion of your work.
• Enable two-factor authentication means activating OTP-based and biometric authentication for extra security. Do not share OTPs and login credentials with anyone.
• Never click on unknown links in emails or messages. Do not share your banking details over unsolicited calls. Always verify directly with your bank before taking action.
• Whenever you go to the ATM to withdraw money, inspect ATMs for skimming devices before inserting your card. Use secure PINs and enable transaction alerts for added security.
• Many clone payment and banking apps are available online. So, be mindful before downloading any app to your device. Always download apps from trusted sources.

Conclusion

Currently, banking fraud is rising. Fraudsters are using various schemes like phishing, identity theft, and online scams to steal money. People can prevent themselves with 2 FA authentication. They should avoid clicking and suspicious links. If you find any unusual activity, report to the bank and the cybercrime portal. Banks can focus on high security with real-time alerts, monitoring, and identity verification.