Guard against financial frauds as data leakage becomes rampant: RBI officials

New Delhi, May 31
Financial frauds have taken new forms and data leakage is now rampant, the Reserve Bank of India (RBI) officials have warned, highlighting the need for citizen awareness programmes.

Addressing a session at the PHD House in the national capital organised by the PHDCCI, Brijlal Singh, deputy general manager and deputy ombudsman, RBI, said fraud is now one of the most common topics in newspapers and everyone is vulnerable to it.

“The only way to protect oneself is through awareness and precautions, as fraud takes many forms and data leakage is rampant. Driven by ignorance, greed, and fear, financial fraud highlights the need for awareness programmes,” he told the gathering.

Cybercrime is projected to cost the world $17.65 trillion annually by 2025, with factors like anonymity and trans-border syndicates contributing to it.

Singh further mentioned various types of fraud such as ATM fraud, prevalent due to the high percentage of cash transactions, and card skimming which is now mitigated to some level after introducing chip systems.

He also discussed fraudsters employing corporate-like strategies, fake KYC updates, and advanced technology like deepfakes.

“It was a myth that fingerprints cannot be copied. With someone’s Aadhaar number, fingerprints can be easily duplicated and frauds committed, misusing a facility initially meant for convenience,” said the RBI official.

According to Ranjeet Mehta, Executive Director, PHDCCI, India is the youngest country in the world and the rapid pace of digital activity is remarkable.

“As per the data, around 6.3 million searches and 4 million messages are sent online every minute. The Digital India programme, launched by Prime Minister Narendra Modi in 2014, was ahead of its time and proved invaluable during the COVID-19 pandemic,” he told the gathering

As the country advances with AI and other tools, awareness about digital fraud and crimes is essential, he noted.