India to introduce measures to combat cyber fraud: Report

Cyber fraud prevention India: Reserve Bank of India (RBI) is set to implement new guidelines allowing banks to temporarily freeze accounts suspected of involvement in cyber crimes, as country grapples with a surge in online fraudulent activities, news agency Reuters reported, quoting three sources familiar with matter.

move comes amid internal government data revealing that individuals have incurred losses of nearly $1.26 billion in financial institutions due to cyber fraud since 2021. As per report, approximately 4,000 fraudulent accounts are being opened daily, highlighting scale of challenge facing authorities.

Reports suggest that a significant number of Indians fall victim to telephone scams aimed at gaining unauthorized access to ir bank accounts and wallets, resulting in funds being siphoned off into perpetrators' accounts.

To dress this growing threat, central bank is expected to empower banks to suspend such suspect accounts without need for victims to file immediate police complaints, as currently required. This proactive approach aims to expedite process of safeguarding customers' assets, according to sources mentioned in report.

While criminals can swiftly drain accounts of funds, banks presently freeze accounts only after registration of a police report, a process that can be time-consuming given volume of cybercrimes being reported, report said.

proposed suspensions would target accounts frequently utilized for transferring illicitly obtained funds from cybercrimes, report ded.

RBI intends to update its guidelines for banks based on insights provided by home ministry's Indian Cybercrime Coordination Centre, which monitors cyber fraud activity across country. Data from agency indicates that over past three months, approximately 250,000 accounts associated with fraudulent activities have been suspended.

However, despite se efforts, a significant number of fraudulent accounts continue to operate unchecked, as regulators and banks are often unable to take action in absence of formal police complaints.

Authorities plan to leverage information on account holders engaged in fraudulent activities to identify ditional accounts held across different banks and suspend m accordingly.

Neverless, re is recognition of need for a centralised body dedicated to investigating cyber frauds, although specific details regarding its establishment remain undisclosed at this stage, according to report.

(With Reuters inputs.)