THE RISE OF BANK FRAUDS – CUSTOMERS BEWARE!By Arvind Pinto

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THE RISE OF BANK FRAUDS – CUSTOMERS BEWARE!By Arvind Pinto

Crypto-linked bank frauds have exploded in India, with losses exceeding Rs45,000 crore in just two years (2024–25), and sadly Goa with its literate population is not immune to this pandemic. Sophisticated scams—from fake investment platforms to mule bank accounts—are siphoning money into crypto wallets abroad, leaving ordinary citizens, banks, and regulators scrambling to respond. If ones reads the papers, this is what it tells you . The ED uncovers Rs303-crore transnational cyber fraud syndicate; 10 arrested, crypto trail traced to Dubai , or again the New Indian Express reports : Over 80 per cent of India’s cyber fraud losses since 2020 reported in last two years. Fake Investment Scam Crackdown: India’s ED Seizes Rs3.35 Crore in Crypto National Cyber Crime Reporting Portal. Yes our media, screams loud and clear, asking us to beware, but are we listening!
While Indians have gone digital in a big way, so have cybercrooks, who are happy to scam the gullible of their hard earned savings. Let’s look at the scale of losses: Indians lost Rs55,659 crore to cyber fraud between 2020–25, with Rs45,344 crore in 2024–25 alone. Fraudsters increasingly convert stolen funds into cryptocurrency (USDT, Bitcoin, Ethereum), moving them across wallets to locations outside the country. The scale of such transactions runs into crores of rupees and in most cases these losses have to be borne by people who do not have much resources. ‘

Common types of Bank Frauds
With Banking having moved into digital transactions, there are several bank frauds linked to digital transactions. One on the most common frauds that many old and unsuspecting persons fall for is known as ‘phishing’ or fake links. Over the phone fraudsters trick gullible customers into sharing their login credentials or one time passwords (OTPs). OTPs are a temporary unique code generally 4 to 6 digits sent to one’s registered mobile number or email. Unfortunately many of our elderly citizens are not conversant with these digital mechanisms and seek help of friends or even servants to assist them with such matters. Another scam relates to United Payment Interface (UPI) or QR (quick response) Code. Fraudsters call up mobile numbers informing them that they have received a refund – the news of receiving money often makes a person do what is asked for; since they believe that they would receive some monetary benefit. Most banks have run advertisement campaigns advising their customers not to share their PIN or OTPs; to no avail. For these scamsters know how to play on the common human greed of obtaining something free! One of the more devious frauds, is when scamsters introduce malware into one’s mobile or computer, which then attempts to gain entry into one’s net-banking or bank apps. This malware then drains one bank balances without one even knowing what is happening. Most of us would have heard stories or become a party to the fraud of your electricity bill pending, where a person from the electricity company asks you to click on a particular code and within a few seconds one gets messages to inform you that transactions are being debited to your bank account! Of recent origin are fraudsters who pose as police, digitally arrest you, and extort money on the guise of lifting the arrest. Then there are fake calls, purported to be from your bank asking you your bank details . Then there are ‘mule accounts’ These are legitimate accounts that are hijacked or recruited to receive fraudulent funds. During the demonetization there were several such mule accounts opened to deposit the demonetized notes using the ID of common people. Today also accounts are being opened in names of persons who give their names or identification for the purpose of opening an account. Money is then deposited into these accounts as a passage to other accounts or to be transferred outside the country. The aim of such accounts is to make it difficult to trace the final destination of these funds.

Measures to be taken by Customers
With digital scams abounding, it is necessary for one to know how to protect oneself. Several banks have put out large advertisements advising their customers not to share their bank details with anyone, including those who claim to be from the bank. Secondly fraudsters often send links or app with a request to download these. Many of these requests are laced with handsome offers. Once such links are opened they allow the scamster to enter into the bank account of the person and drain their live earned savings.

The Goan Angle
Goa being a tourist destination is an ideal locale for several of these frauds. Foreign tourists tempt locals into receiving payments by digital transfer or even crypto currency. Often in order to have a customer connect or not lose business, many Goans enter into such transactions little knowing of how crypto currency works or what to do with these digital currencies. Many Goans working abroad have need to send their earnings home. Many of these workers often use the unofficial channels since these are often cheaper than paying bank commissions. However at times these remittances often hijacked by fraudsters and the money does not reach their families. One of the common scams that some Goans fall for are investment scams. Scamsters promise high returns, called ponzi schemes. Many who put in money into these schemes often come to grief, when the scheme collapses.
Over the years Government has taken several initiatives to reduce the risk of these scams and scamsters. In cases where the responsibility lies with the Bank, RBI has mandated that the Bank makes good the loss. To give an instance, when a customer used a debit card to withdraw money, and subsequently the details of the card was skimmed by a fraudster to remove money from the account, on a complaint by the customer, the bank reimbursed the amount so lost. It is therefore necessary to check ones credits and debits to ensure that there are no unauthorised transactions. Further in case of an unauthorised transaction, it is necessary to inform the bank at the earliest. In case of a digital debit, it would also be necessary to report the transaction of the cyber cell of the police for further enquiry.
As India moves into a digital age. Cyber crimes continue to grow. Thanks to the sophistication used by these criminals, the methods of crime continue to keep one step ahead of our law agencies. It pays to be prudent to ensure that one is careful and diligent in ones financial affairs. For working 24/7 are cyber crooks ever willing to enter your digital bank account to steal your life savings.