{"id":4630,"date":"2020-10-12T08:59:40","date_gmt":"2020-10-12T08:59:40","guid":{"rendered":"https:\/\/signdesk.com\/in\/?p=4630"},"modified":"2025-09-17T07:07:26","modified_gmt":"2025-09-17T12:37:26","slug":"video-kyc-solves-id-theft-online-bank-fraud","status":"publish","type":"post","link":"https:\/\/melento.ai\/en-in\/blog\/video-kyc-solves-id-theft-online-bank-fraud","title":{"rendered":"Identity Theft & Online Fraud In The Banking Sector And How Better KYC Is The Remedy"},"content":{"rendered":"

Widespread online fraud in Indian Banking<\/a><\/strong><\/span><\/h2>\n

With the advent of work from home all over the world and a major shift towards digitization<\/strong><\/a> across all sectors in the wake of the ongoing pandemic, fraudsters and hackers have been making hay.\u00a0<\/span><\/p>\n

The primary means of operation for fraudsters are identity theft and online fraud, mostly through mobile applications. With over 41% of banking transactions in India now performed using mobile applications, hackers are exploiting the general lack of awareness regarding cyber security that abounds in India to make off with the big bucks.\u00a0<\/span><\/p>\n

RBI has <\/span>estimated<\/span><\/a> that Indians have lost Rs. 128 crore between October and December of 2019 mostly through credit\/debit card frauds and NetBanking fraud. These numbers have exacerbated over the course of the pandemic-induced lockdown, causing RBI to send our several texts and messages warning Indians to not succumb to online frauds.\u00a0<\/span><\/span><\/p>\n

This is certainly a damning account of the state of cybersecurity in Indian banking, but just how bad is the problem?\u00a0<\/span><\/p>\n

\"Video-based-kyc\"<\/p>\n

Mounting online fraud<\/a>-related losses<\/strong><\/span><\/h2>\n

The state of online banking was dire even before the pandemic hit, RBI <\/span>reports<\/a><\/strong> that Indian banks lost Rs. 109 crore to online fraud and theft in FY 2018, and this number has only been increasing.\u00a0<\/span><\/span><\/p>\n

Digital banking<\/strong> has been on the rise over the last few months, spurred on by the restrictions put in place due to the pandemic, and this has had a truly debilitating effect on top of the already rampant problem of online fraud.\u00a0<\/span><\/p>\n

Experian <\/span>reports<\/strong> that among South-Asian countries,<\/span> Indian banks have seen the highest increase in online fraud losses at 65% and identity theft makes up 28% of these cases.\u00a0<\/span><\/span><\/p>\n

Here\u2019s a break-down of product-wise fraud trends and the percentage of identity & documentation<\/strong> fraud for each product.<\/span><\/p>\n\n\n\n\n\n\n\n\n\n
\n

Product<\/b><\/span><\/p>\n<\/td>\n

Amount of Identity Fraud(%)<\/b><\/span><\/td>\n\n

Amount of Fraudulent documentation & information (%)<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Home Loans<\/span><\/p>\n<\/td>\n

30%<\/span><\/td>\n\n

36%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Credit Cards<\/span><\/p>\n<\/td>\n

15%<\/span><\/td>\n\n

38%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Personal Loans<\/span><\/p>\n<\/td>\n

44%<\/span><\/td>\n35%<\/span><\/td>\n<\/tr>\n
Consumer Loans<\/span><\/td>\n37%<\/span><\/td>\n\n

28%<\/span><\/p>\n<\/td>\n<\/tr>\n

Auto Loans<\/span><\/td>\n34%<\/span><\/td>\n\n

34%<\/span><\/p>\n<\/td>\n<\/tr>\n

Two-wheeler Loans<\/span><\/td>\n43%<\/span><\/td>\n\n

27%<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Fraudulent identity and documentation<\/a> therefore make up the bulk of online fraud in nearly every product offered by Indian banks.\u00a0<\/span><\/p>\n

This is a deplorable state of affairs and requires immediate remedial measures.<\/span><\/p>\n

How can you protect against online fraud<\/a>?\u00a0<\/strong><\/span><\/h2>\n

Individuals and businesses can follow the following steps to safeguard against online fraud and cyber-attacks.\u00a0<\/span><\/p>\n

For Individuals<\/strong> –\u00a0<\/span><\/p>\n