India witnessed a significant increase in financial losses due to cyber fraud, with the amount more than doubling from ₹69.68 crore in FY23 to ₹177.05 crore in FY24. This concerning trend, highlighted in a written response to the Lok Sabha by the Minister of State for Finance, Pankaj Chaudhary, underscores the growing threat posed by cyber frauds, particularly those involving credit cards, debit cards, and internet banking.
 

Escalating Losses Over the Years

The financial toll from cyber fraud has been rising steadily over the past few years. In FY22, the losses amounted to ₹80.33 crore, up from ₹50.10 crore in FY21 and ₹44.22 crore in FY20. The dramatic rise in FY24 signals the need for increased vigilance and stronger security measures.
 

Customer Liability and Reporting Guidelines

Where losses occur due to customer negligence, the onus is on the customer to bear the entire loss until the unauthorized transaction is reported to the bank. The Reserve Bank of India (RBI) has issued guidelines to protect customers from undue financial burdens in such cases:

• Reporting within 3 Days: If the unauthorized transaction is reported within 3 working days, customers can avoid any loss, provided the bank or system is proven to be at fault.
• Reporting within 4-7 Days: If reported between 4 to 7 working days, the customer’s liability can range from ₹5,000 to ₹25,000, depending on the type of account.
• Reporting after 7 Days: Beyond 7 days, the liability is determined by the bank’s internal policy. The bank must prove customer negligence to impose liability.

Pankaj Chaudhary emphasized that the burden of proving customer liability in cases of unauthorized electronic banking transactions lies with the bank.

How to Report Cyber Fraud

Several channels are available for reporting cyber fraud:

• National Cybercrime Reporting Portal: The Ministry of Home Affairs has launched a portal (www.cybercrime.gov.in) dedicated to reporting cyber incidents, including financial frauds.
• National Cybercrime Helpline: A toll-free helpline number (1930) is available for immediate assistance in reporting cybercrime.
• Bank Reporting Channels: Customers can also report financial fraud directly to their bank through its official website or branch.
   

Government Initiatives to Combat Cyber Fraud

The government has implemented several measures to combat cyber fraud, including:

• National Cyber Crime Reporting Portal: This platform enables the public to report all types of cyber crimes, with a special focus on those against women and children. Reported incidents are converted into FIRs and handled by State/UT law enforcement agencies as per legal provisions.
• Citizen Financial Cyber Fraud Reporting and Management System: Launched to allow immediate reporting of financial frauds and prevent the siphoning off of funds. Since its inception, over ₹1,200 crore has been saved across more than 4.7 lakh complaints.
• CERT-In Alerts and Audits: The Indian Computer Emergency Response Team (CERT-In) issues ongoing alerts and advisories regarding the latest cyber threats. In collaboration with the RBI, CERT-In has advised banks and authorized entities to conduct special audits, address non-compliance issues, and implement security best practices.
   

Through these initiatives, the government aims to enhance cybersecurity awareness and reduce the financial impact of cyber fraud on Indian citizens.