On June 30, 2025, the Reserve Bank of India directed all Scheduled Commercial Banks, Small Finance Banks, Payment Banks, and Co-operative Banks to integrate the Financial Fraud Risk Indicator (FRI) developed by the Department of Telecommunications (DoT) into their systems. The move comes as digital banking fraud continues to surge across India.
With the rapid increase in the use of online banking, mobile wallets, and UPI for everyday transactions, scams have become more frequent and harder to spot. Thousands of users in India lose money every year to phishing links, fake calls, and other forms of online banking fraud.
What Is Banking Fraud?
Banking fraud refers to any unauthorised activity carried out by criminals to access or steal your money or sensitive information. These scams can happen online, over the phone, through SMS, or even at an ATM.
Some Of The Most Common Banking Frauds
1. Email Phishing and Suspicious Links
You receive an email or message claiming to be from your bank. It asks you to click a link to verify your account or prevent suspension. The link leads to a fake website that steals your login details.
🚩 Red Flags To Look Out For
- Email ID identical to the official ones, but slightly misspelled
- Bogus URLs or non-HTTPS website links
- Creates a sense of urgency, such as “Your account will be blocked in 2 hours!”
✅How To Stay Safe
Never respond to unknown emails or click on suspicious links. Visit the official bank website or use their app directly.
2. SIM Swap Fraud
Scammers clone your mobile number by impersonating you and tricking your telecom provider. Once they gain control, they get all your messages, including OTPs needed for bank transactions.
🚩 Red Flags To Look Out For
- Suddenly, SIM becomes inactive or loses network
- You stop receiving messages or calls
- You stop receiving OTPs or messages from your bank.
✅How To Stay Safe
Never share your phone number or banking credentials with strangers. Always enable email alerts and use strong passwords with two-factor authentication.
3. UPI and QR Code Scams
You are tricked into scanning a QR code or entering your UPI PIN under the pretext of receiving money. These frauds often occur during peer-to-peer transactions.
🚩 Red Flags To Look Out For
- Check the SMS alert to make sure money is credited to your account.
- Check your bank account number and verify sms is from the official bank number and not a fake message from a scammer.
✅How To Stay Safe
Remember that no PIN is required to receive money. If you’re being asked to scan a code or approve a collect request to get paid, it’s almost certainly a scam.
4. KYC Fraud Calls
Similar to email phishing scam, Fraudsters call you posing as bank employees or RBI officials, claiming that your account will be frozen or deactivated unless your KYC (Know Your Customer) details are “updated” immediately.
🚩 Red Flags To Look Out For
- Force you to do the process immediately
- Push you into sharing confidential information like your Aadhaar number, PAN, debit card details, or even OTPs.
- Ask you to install fake apps to complete the verification process.
✅How To Stay Safe
Never share OTP, CVV or other credentials with anyone. No genuine bank ever asks for sensitive information over a phone call. If you receive such a call, hang up and contact your bank directly through an official number.
5. ATM Skimming
ATM skimming is yet another dangerous bank fraud where criminals secretly install small devices on ATMs to steal your card information. They place skimmers on the card slot, or hidden cameras are positioned nearby to capture your PIN as you type it.
🚩 Red Flags To Look Out For
- Unusual or loose card slot.
- Unauthorised transaction from your account.
✅How To Stay Safe
Always check the card slot before inserting the card slot and report to the bank if you see any suspicious transactions.
6. Fake Loan or Investment Offers
You might receive a message or email claiming you're eligible for a quick personal loan with zero paperwork or guaranteed approval. In other cases, you're promised unusually high returns on "limited-time" investment schemes.
🚩 Red Flags To Look Out For
- Promises of instant loans without verification or documentation
- Unrealistic returns like “double your money in 30 days”
- Pressure to act immediately or “limited-time offer” pitches
- No proof of registration with the RBI, SEBI, or other regulators
- Vague contact details or only WhatsApp-based communication
✅How To Stay Safe
Always verify loan or investment offers directly through the official bank or financial institution’s website. If the offer sounds too easy or too profitable, it’s likely a scam.
What to do if you have been scammed?
If you’ve been scammed, don’t panic and take action immediately. Every minute counts. Here’s what you should do
- Contact your bank through the official number and ask them to block your account and all your cards.
- Collect all the evidences of the scam.
- Call the Cybercrime Helpline number 1930 or visit cybercrime.gov.in to file an immediate complaint. file an immediate complaint.
- If you are unable to reach any of the cyber cells, you can also file an FIR at the nearest police station.
Bottom Line
Banking fraud is only going to get more sophisticated as we step into the future. With AI-generated messages, deepfake voices, and cloned websites, scams are getting harder to detect. Awareness is the only shield that will keep you protected. Small habits like recognising red flags, double-checking every message, and taking a few extra seconds before clicking anything, might only save you from major financial loss.
Share this guide with friends and family, especially those who may not be familiar with digital banking. The more people know what to watch out for, the harder it becomes for scammers to succeed.
Disclaimer: Investocraxze does not provide financial or investment advice. Content is for informational purposes only.