BANKING SCAMS IN INDIA

Abstract

Banking scam is also known as banking fraud. Banking fraud is a criminal act. The top three fraud risks that are currently the highest concern for banks are: Internet banking and ATM frauds, e-banking (credit card, debit card, etc.), and identity fraud. Fraud and its redressal is a major concern area for the banking sector and across all portfolios – retail, corporate, and priority sector. Bank fraud is almost always a federal crime. This is because most banks are protected by the Federal Deposit Insurance Corporation, a federal program that protects consumers’ deposits in banks and other financial institutions. Bank fraud is considered to be a white-collar crime. Common types of bank frauds include: Bank impersonation, stolen checks, forgery, fraudulent loans, internet fraud, etc. Offences related to banking activities are not only confined to banks but have a harmful impact on their customers and society at large. These frauds are now becoming more and more frequent and can be considered as one of the main reasons for damaging the economy of the country. Nirav Modi bank scam, bank scam by Vijay Mallya, Allahabad Bank scam, Rotomac Pen scam, RP Info Systems bank scam, Simbhaoli Sugar Mills bank scam, United Bank of India, Karnataka Bank case, SBI fraud case, etc., are the bank frauds that have rocked Indian banking sector. In this article, the researcher aims to provide an overview on the most important banking frauds.