New Delhi, March 5 -- A recent report by the Reserve Bank of India (RBI) has sounded the alarm on the rapid rise in bank fraud cases.

Between April and September 2024, 18,461 frauds were reported, involving a staggering Rs.21,367 crore-an eightfold jump compared to Rs.2,623 crore last year.

The number of cases, too, has surged by nearly 28%. Beneath these numbers lies a growing threat that financial institutions are struggling to counter: sophisticated fraud in loan applications.

Digital imposters

Identity fraud is at the heart of this crisis, with fraudsters pretending to be genuine applicants to get loans. Digital onboarding has improved with Aadhaar-based OTP verification and face-matching technology, strengthening security. Howeve...