AIBEA Flags Rise in Bank Frauds Across Private and Public Sector Banks

The All India Bank Employees’ Association (AIBEA) has releases over the sharp increase in banking frauds reported by both private and public sector banks. Drawing from official data sourced via the Reserve Bank of India (RBI) and RTI queries, the bulletin outlines fraud trends from the fiscal year 2023–24 and the first nine months of 2024–25.

Private Banks Top Fraud Charts
Private sector financial institutions, including private banks and payments banks, continue to dominate the fraud statistics, with Airtel Payments Bank reporting 44,587 fraud cases in 2023–24 and 19,642 in 2024–25 (up to December). Axis Bank and ICICI Bank followed with 32,987 and 30,071 frauds respectively in 2023–24. HDFC Bank, which had a relatively lower number the previous year, reported a sharp increase to 39,536 frauds in the current financial year so far.

Collectively, private banks accounted for 1,19,283 frauds in 2023–24, and 91,118 frauds in 2024–25 (till December), indicating a persistent and troubling trend.

Public Sector Banks Also See Spike
While public sector banks reported fewer frauds than private banks, the numbers are still concerning. The State Bank of India reported 14,786 frauds in 2023–24 and 13,056 in 2024–25 (up to December), followed by Bank of Baroda (12,063 and 3,648 respectively). Other major PSBs such as Punjab National Bank, Indian Overseas Bank, and Indian Bank etc, also contributed to a total of 54,908 frauds in 2023–24, and 25,878 in the current financial year.

Image: The data provided by AIBEA concerning frauds in banks.

AIBEA’s Analysis and Call for Reform
AIBEA’s bulletin emphasizes that rising frauds in both sectors challenge the prevailing perception that private banks are more efficient. The data, according to AIBEA, should prompt a re-evaluation of performance parameters used in the banking industry.

AIBEA highlights the need for depositor trust and institutional accountability, especially as banks expand digitally.

Looking Ahead
The surge in reported frauds across both private and public sector banks underscores a deeper systemic issue—banking security is struggling to keep pace with rapid digitization. As financial services increasingly move online and banking becomes more technology-driven, robust regulatory frameworks, real-time fraud detection systems, and transparent accountability mechanisms are no longer optional, they are essential. AIBEA’s bulletin calls attention to the urgent need for coordinated action between banks, regulators, and government bodies to safeguard depositor interests and restore public confidence in the banking system.