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Top 10 Banking Frauds In India

banking frauds

India is a fast growing economy and the banking sector has been booming in recent years. However, it is important to note that the banking industry in India has seen many instances of frauds and crimes. In this post we will be discussing some of the most common banking frauds that happen everyday in India.

Fake cheques

Fake cheques are a common way to steal money. They’re often used by criminals to launder money, make large purchases and pay for drugs.

Theft of US dollars

US dollars are the most used currency in the world. The United States is one of the biggest markets for US dollars and there are many countries that use this currency as a medium of exchange.

US dollars can be used in India to purchase goods, services, or transfer money from one place to another. If you have an account with an Indian bank or ATM, it’s likely that part of your balance will be made up of these shiny green pieces of paper called American Express travellers cheques (ATC).

Dishonest borrowing

  • Buying a car.
  • Borrowing money to buy a house.
  • Borrowing money to start your own business or invest in one that you think will make you money, but it doesn’t pan out as expected and the loan goes into default.
  • Taking out loans at high interest rates because of an emergency situation—for example, if your family is sick or there’s been an accident in the family and you need medical treatment but don’t have insurance; or if something unexpected happens so that everybody needs help paying their bills (but this happens less often).


  • Fraud is a crime. It’s punishable and it can result in imprisonment, fines and/or other punishment.
  • Fraud is a serious offence in India (and elsewhere). It’s also one that happens often enough to be considered one of the biggest problems facing our financial system today.
  • Fraud affects everyone—from your bank account or credit card balance to your home loans or car loans.

Loan fraud

Loan fraud is the most common form of fraud in India. It involves the fraudulent use of a loan or credit card to obtain money or property, usually with the intention of defrauding the lender. Loan fraud can take many forms and may involve any number of people involved in setting up false documents with lenders, providing falsified information on applications for loans, or submitting forged documents when applying for loans themselves.

Money laundering

Money laundering is the process of transforming the profits of crime into assets that are not easily traceable. It involves the use of financial institutions, such as banks, to launder money.

Money laundering is a criminal activity that is carried out by criminals to hide their illegal income and avoid being caught by law enforcement agencies.

Account takeover/clone

Account takeover/clone is a fraud that occurs when someone pretends to be you by using your personal information, such as your name and address. The fake account holder can withdraw money from your account, but you will not be able to withdraw any money from the fake account.

To prevent this type of fraud from happening:

  • Ensure that all contact details are up-to-date on your bank’s website or mobile banking app; this includes email addresses and phone numbers for all employees who interact with customers about their accounts or transactions in any way (including via email).

The banking world has become very unsafe for Indians.

The banking world has become very unsafe for Indians. The rise of frauds in the country has made it necessary for citizens to take precautions while using banks and other financial institutions. In this article, we will look at some ways you can protect yourself from being a victim of frauds perpetrated by criminals who use your personal information as a tool towards their criminal activities.


As you can see, banking frauds have become a problem in India. It is important to remember that these crimes are not just limited to the banks but they are also taking place in other forms of financial institutions like insurance companies and other financial institutes as well. If you feel like your account has been compromised or someone is trying to take advantage of your identity by impersonating someone else, contact law enforcement immediately so that they can investigate the matter further before anything bad happens!

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