Key facts
- 84% of Indian banking leaders reported increased fraud losses in the past year.
- 90% of Indian banking leaders reported an increase in fraud attempts.
- 93% of Indian respondents believe AI has increased the sophistication of fraud schemes.
- 95% of Indian respondents are concerned about the increasing speed of fraud.
- 66% of Indian banking leaders identified instant payment systems as a major driver of fraud.
- 48% of Indian institutions reported annual fraud losses exceeding $10 million.
Indian banks are experiencing a significant increase in fraud, with 84% of banking leaders reporting higher losses over the past year, according to a survey by BioCatch. The report, which surveyed 1,440 leaders globally, highlights India as a market heavily impacted by financial fraud and AI-enabled threats.
Within India, 90% of surveyed banking and financial crime prevention leaders noted an increase in fraud attempts, a figure substantially higher than the global average. Similarly, 84% of Indian leaders reported rising fraud losses, surpassing the global average of 76% and marking a notable jump from previous years.
The survey underscores growing concerns about artificial intelligence's role in financial crime. A vast majority of Indian respondents (93%) believe AI has amplified the sophistication of fraud schemes, and 90% anticipate challenges in differentiating legitimate AI-assisted activities from malicious ones. Furthermore, 95% of Indian banking leaders expressed significant concern regarding the escalating speed of fraudulent activities.
The financial repercussions for institutions are substantial, with 48% of Indian respondents indicating annual fraud losses exceeding $10 million. Of these, a considerable portion reported losses above $25 million, $50 million, and even $100 million.
Customer losses due to scams and authorized fraud are also a major issue, with 58% of respondents estimating over $5 million lost annually by customers to scams. Instant payment platforms were identified as a key driver of this rise, with 66% of Indian banking leaders citing them as a primary source, exceeding the global average. India's rapid adoption of systems like UPI is seen as potentially creating new avenues for fraudsters.
BioCatch CEO Gadi Mazor noted that AI is transforming customer interactions and will consequently alter how criminals execute financial crimes. He emphasized the need for the industry to move beyond traditional identity checks and focus on understanding behavior, intent, and trust to combat evolving fraud threats.