Online Banking Fraud In India: Legal Framework And Challenges
Priti Somnath Dhere, Shri Navalmal Firodia Law College, Pune
ABSTRACT
As banking becomes digital, fraud has also become a growing concern in the lives of ordinary people. The rapid growth of internet banking, mobile banking, UPI, and digital wallets has made financial transactions easier and faster. However, it has also increased online banking fraud through phishing, fake banking calls, OTP fraud, identity theft, and unauthorized transactions. In India, the Information Technology Act, 2000, banking regulations, and cybersecurity measures provide a legal framework to address online banking fraud. However, victims still face challenges such as lack of awareness, delays in reporting, difficulties in identifying offenders, and recovering lost money. This study examines the legal framework relating to online banking fraud in India and analyses the practical challenges faced by victims. It also aims to suggest measures to improve cybersecurity, public awareness, investigation, and victim protection. Stronger enforcement and faster complaint mechanisms can help reduce online banking fraud and protect banking customers. Greater public awareness, stronger cybersecurity measures, and faster reporting and investigation mechanisms can reduce online banking fraud and improve the protection of banking customers. The main aim of this study is to examine the legal framework relating to online banking fraud in India and identify the practical challenges faced by victims. The objectives are to understand the concept and major forms of online banking fraud, examine the relevant legal and regulatory provisions, analyse the challenges in reporting and investigation, and suggest measures for improving prevention, enforcement, and victim protection. The study suggests stronger implementation of cybersecurity Increase Cybersecurity.
Keywords: Online Banking Fraud, Cybercrime, Digital Banking, Internet Banking, Cybersecurity, Information Technology Act, Financial Fraud, Consumer Protection, Legal Remedies.
