The Role Of Law And Technology In Combating Digital Banking Frauds In India
- IJLLR Journal
- Jun 18
- 1 min read
Prof. (Dr.) Seema Surendran, Professor, CMR University, School of Legal Studies, Bangalore, Karnataka
Niriksha Y M, LL.M. (Commercial Law), CMR University School of Legal Studies, Bangalore, Karnataka
ABSTRACT
Digital banking has transmuted India's financial landscape, providing ease and accessibility like never before. However, this drastic change has also led to a surge in fraudulent activities, exploiting vulnerabilities in digital transactions. Cybercriminals employ various deceptive techniques, including phishing, vishing, spear phishing, skimming, SIM swaps, and malware attacks, to manipulate unsuspecting individuals and financial institutions. The Reserve Bank of India reported a nearly 300% increase in bank fraud cases during the financial year 2023-24, emphasizing the growing threat posed by digital payment frauds. This alarming rise calls for comprehensive legal and technological safeguards to protect consumers and financial institutions alike. Strengthening cybersecurity frameworks, enhancing fraud detection mechanisms, and promoting digital literateness among users are crucial steps in mitigating these risks. This paper explores the legal framework established to combat digital banking frauds and examines the part of technology in addressing these challenges. The study explores into the legal and regulatory division surrounding digital banking frauds in India, examining key legislation, judicial precedents, and enforcement mechanisms. It also explores technological developments such as artificial intelligence, blockchain, and biometric authentication, assessing their role in enhancing security and fraud prevention.
Keywords: Digital Banking frauds, Reserve Bank of India, financial sector, technology, regulatory framework, challenges.
