Banks lose nearly Rs 6.6 cr to Internet frauds

Banks across the country have lost Rs 6.57 crore (Rs 65.7 million) to internet frauds in 233 incidents of cyber crime with Tamil Nadu topping the list in last fiscal year.

Rs 2.09 crore (Rs 20.9 million) have been lost by various banks in Tamil Nadu in seven cases reported between April and December 2008.

Whereas, the lending institutions in Maharashtra, which reported the highest number of 23 incidents, have lost Rs 55.54 lakhs (Rs 5.54 million) to online fraudulent practises, minister of state for home Shakeel Ahmad told the Lok Sabha on Tuesday.

The banks in Rajasthan, Andhra Pradesh and West Bengal have lost Rs 89.93 lakhs (Rs 8.99 million), Rs 64.29 lakhs (Rs 6.42 million) and Rs 35.72 lakhs (Rs 3.57 million) respectively while Kerala and Delhi lost Rs 17.60 (Rs 1.76 million) and Rs 10.90 lakhs (Rs 1.09 million) respectively owing to cyber frauds.

Eleven cases of internet frauds were reported from Andhra Pradesh, eight from Delhi, seven from Tamil Nadu, six from Karnataka and five from West Bengal during the said period, the minister said in a written reply.

However, banks in Bihar, Goa and Jharkhand did not lose a single penny to such activities and no case was reported from any of these states.

The minister tabled in the House a state-wise list of number of incidents of internet frauds that include cases of fraudulent withdrawal of money from banks through Internet/online banking, as reported by the banks to the Reserve Bank of India.

According to a data updated till 2007, out of the total 355 people arrested across the country, a maximum 156 people were arrested in Madhya Pradesh in connection with cheating related cases under IT Act -- Fraud digital signature (Section 64) and Breach of Confidentiality\Privacy (Section 72) -- and IPC Crime (Forgery and Criminal Breach of Trust/Fraud).

The highest number of cases, 153, were also registered in Madhya Pradesh for forgery and Criminal Breach of Trust/Fraud out of the total of 302 cases in the said period.

Similarly, a total of 41 incidents --38 under IPC crime and three under IT Act -- were reported in Chhattisgarh for cyber frauds and 75 persons -- 72 under IPC crime and 3 under IT Act -- were arrested, it said.

A total of 59 people were also arrested in Andhra Pradesh, 36 in Punjab, 16 in Andaman and Nicobar Island and four in Delhi in connection with cheating related incidents in 2007.

The amount lost to cyber frauds during April 2007 and March 2008 were Rs 5.58 crore and 374 people were arrested in this connection.