New Delhi: Customers of the State Bank of India lost more than ₹6,313.4 crore in over 30,700 fraud cases between April 2023 and March 2026, according to an RTI-based report that points to UPI and internet banking as the most frequently exploited channels in digital banking fraud. The data has raised concerns over the scale of cyber-enabled financial crime as digital transactions continue to expand across India.
UPI And Internet Banking Lead Fraud Cases
According to the report, 12,868 fraud cases involved UPI transactions, while 8,657 cases were linked to internet banking. Together, the two channels accounted for more than 21,500 incidents, forming the bulk of the reported fraud cases.
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The data suggests that although the number of fraud cases has shown a slight decline in recent years, the average loss per case has increased. This indicates a shift toward fewer but higher-value frauds, resulting in sharper financial damage for victims.
SBI data also recorded 23,580 cyber fraud incidents involving losses of ₹166.73 crore during the reporting period. Separately, 303 cases involving banking employees were reported, leading to losses of ₹311.08 crore.
West Bengal Records Highest Reported Losses
State-wise data placed West Bengal at the top, with 3,426 fraud cases and losses of ₹143.67 crore. The report did not provide comparative figures for all other states.
The methods used by fraudsters have also become more sophisticated. Earlier scams largely relied on phishing links and fake calls, but more recent frauds involve fake investment applications, screen-sharing manipulation, remote access tools and cloned trading platforms.
SBI has also stated that it does not maintain separate detailed data on digital arrest scam cases, despite rising complaints across the country. In such cases, fraudsters impersonate law enforcement or regulatory officials and pressure victims into transferring money under threat of arrest or legal action.
Experts Flag Social Engineering Threat
Cybercrime expert and former IPS officer Prof. Triveni Singh said the digital payment ecosystem has brought convenience and speed, but has also expanded opportunities for cybercriminals. He said fraudsters now rely more on psychological manipulation than technical hacking, using fear, greed and urgency to trap victims.
He further noted that while banking security systems have improved, criminals continue to adapt by exploiting human vulnerabilities and social engineering tactics.
The report underlines the need for stronger cybersecurity systems, better transaction monitoring and wider public awareness as digital banking becomes central to everyday financial activity. It also highlights the growing risk ordinary customers face when fraud networks exploit popular payment channels such as UPI and internet banking.
