THE MINISTER OF FINANCE (SHRI PRANAB MUKHERJEE)
(a) to (d) A statement is laid on the table of the House.
Statement as referred In reply to part (a) to (d) of Lok
Sabha Starred Question No.68 for 25.11.2011
regarding Cyber Frauds in Banks
(a) and (b): As per data submitted by Public Sector Banks to Reserve
Bank of India (RBI), the incidents involving Debit Cards, Credit Cards,
Internet Banking and ATM Frauds have increased during the three calendar
years 2008-2010 and current year up to Sept., 2011 as shown below:
(Amount Rs. in lakhs)
SI.No. Calendar Year Total cases Amount Involved. reported
1. 2008 55 117.24
2. 2009 97 105.81
3. 2010 155 369.81
4. Till Sept., 2011 92 573.04
A statement containing details of number of cases of ATM/Credit/Debit Card and
internet Banking frauds during last three years, and current financial year and
amount involved, bank-wise is placed at Annex.-I.
(c) The details of NPAs in credit cards (consolidated) pertaining to all Banks
during the last three years and current financial year upto Sept., 2011 is as under:
Data on Credit Card outstanding and Impaired credit pertaining to All Banks and PSBs
(Rs. Crores)
Month All Public Sector Banks
Year Banks `A` `B`- Share of `C`- `D`- Share of Retail- Retail- `A` in Retail- Retail- `C` in `D` Impaire Outstan `B` in % Impaired Impaire in% d Credit ding Credit d Credit Card Credit Card Card Recelva Card Receivabl Receiva bles Receiva es bles bles
March 5094 29941 17.01 59 346 17.09
2009
March 3653 21565 16.94 46 330 13.85
2010
March 2946 18655 15.79 55 341 16.11
2011
Septem 2660 20238 13.15 52 422 12.22
ber
2011
Source: Latest updated OSMOS database (Domestic Operations)/Bank-wlse details are at Annex.II
(d) RBI as a part of its supervisory responsibilities has taken various measures
to prevent bank frauds and in this process has issued, from time to time
guidelines on internet banking frauds to all scheduled commercial banks, as summarised below:
(i)RBI(DBS) caution circular dated 16.2.2006 on phishing attacks1
advising banks and customers about the modus operand on such
attacks and minimum set of preventive/detective measures to
tackle phishing attacks. (ii) RBI(DBS) circular dated 22.2.2006 on `security
arrangements for ATMs of banks`. (iii) RBI(DBS) circular dated 26.6.2006
on `preventive measures to combat frauds relating to skimming or duplicating of debit
cards1. (iv) Master circular dated 2.7.2007-Consolidated guidelines in the
operation of credit cards. (v) RBI(DPSS) circular dated 18.2.2009 on
`security issues and risk mitigation measures relating to online card transactions
using credit/ debit cards` effective from 1.8.2009.(vi) RBI(DPSS) circular
dated 23.4.2010 `regarding extending the system of additional authentication/validation
to all cards not present transactions to IVR transactions` also effective
from 1.1.2011. (vii) RBI(DBOD) circular dated 7.12.2010 on the issue of `Money Mules`,(viii) RBI (DPSS) circular dated 29.3.2011 advising banks to put in place a system of
online alerts for all type of transactions irrespective of amount involving of usage
of cards at various levels latest by 30.6.2011. (ix) RBI(DBOD) master circular
dated 1st July, 2011 on `credit card operations of banks1 suggesting setting up
of internal control systems to combat frauds and to take proactive fraud control and
enforcement measures.
Besides above RBI (DBS) has also circulated on 29.4.2011 the recommendations of a Working
Group on `information security, electronic banking, technology risk management and tracking
cyber frauds` which was set up by RBI in 2010. The Group among its various recommendations
have also suggested that chip based cards may be used as an alternative to magnetic strips
card based as a measure to counter the risk of skimming of ATM cards.
