In fiscal year 2024-25, cases of small-ticket banking frauds surged sharply. This rise came at a time when the total amount involved in such frauds had dropped nearly 74% over the past five years, yet the number of cases more than tripled. Data shows that frauds related to advances continue to be significant, accounting for the largest share of the total monetary value and nearly one-third of all cases.
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Advance-related frauds include irregularities in real estate, such as interest subvention schemes. A recent intervention by the Supreme Court revealed an alleged “unholy nexus” between builders and financial institutions in home loan subvention programs, prompting the CBI to initiate six fresh cases.
Card and internet banking frauds, which had peaked at 80.6% of cases in FY24, accounted for 56.5% of total cases in FY25. Advance-related frauds have consistently dominated in terms of value, accounting for more than 80% of total fraud amounts over the last five years.
Private sector banks consistently reported the highest number of fraud cases, but public sector banks (PSBs) suffered the largest share of total losses. In FY24, PSBs accounted for 75.6% of total losses from frauds, remaining high at 71.3% in FY25.
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SBI Records ₹7,664 Cr Fraud Losses
State Bank of India (SBI) topped the list in FY25 with the highest total fraud amount, recording losses of ₹7,663.92 crore, approximately 29.86% of total losses. Meanwhile, among private banks, IDBI Bank reported the highest number of fraud cases in FY25.
Experts suggest that the rise in small-ticket frauds is driven by increased use of digital and technological platforms. Card and internet banking frauds now account for more than half of all cases, highlighting the need for banks to strengthen cybersecurity measures and customer awareness.
Prof. Triveni Singh, renowned cybercrime expert and former IPS officer, stated, “Small-ticket frauds are often overlooked, but they expose weak links in the digital banking ecosystem. Banks must strengthen security through monitoring, staff training, and technological measures. Customer awareness also plays a crucial role in preventing fraud.”
Despite the rise in the number of fraud cases, advance-related frauds still account for the largest financial losses. This includes irregularities in real estate investments and interest subvention schemes. Experts note that insufficient regulatory vigilance and transparency in these areas increase the risk of fraud.
PSBs vs Private: Different Pain Points
Data shows that while private sector banks have seen growth in the number of cases, PSBs have suffered larger monetary losses. SBI’s biggest financial loss, IDBI’s highest private sector cases, and the rise in card/internet banking frauds indicate that small-ticket scams are becoming a serious concern for the financial system.
Experts recommend that banks adopt robust monitoring systems, employee training, and enhanced digital security measures to detect and prevent small-ticket frauds promptly. Additionally, improving customer awareness and fraud reporting mechanisms can help control such cases.
Digital Banking Era Demands Vigilance
FY25 figures indicate that small banking fraud cases have risen even as total monetary losses declined. Public sector banks experienced significant financial losses, with SBI being the most affected. With digital and internet banking on the rise, strengthening fraud management and security measures has become imperative for banks.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
