AIBEA Exposé Reveals Over 1.7 Lakh Frauds Costing ₹77,000 Crores (USD 9.2 Billion)

Fraud Tsunami: India’s Banks Lose Billions as Private Giants Fail to Protect Public Money

RTI Filed by AIBEA, Mumbai Unmasks India’s Crumbling Banking Infrastructure

By S Suchithra

India’s banking sector is in deep crisis, with over 174,000 fraud cases reported across public and private sector banks between 2022 and December 2024, according to shocking data obtained through a Right to Information (RTI) query filed by the All India Bank Employees’ Association (AIBEA) in Mumbai. The figures, released by the Reserve Bank of India (RBI), indicate a systemic collapse of internal controls and customer protection, with estimated losses topping ₹77,000 crores or USD 9.2 billion.

Staggering Losses by Bank (Estimates in USD)

Assumption: Average loss per fraud = ₹4.5 lakh (USD ~5,400)

Private Banks (Total: 1,19,283 frauds from 2022–24, 91,118 frauds in 2024–25 up to Dec)

1. HDFC Bank

   • 2022–24: 11,638 frauds → USD 62.8 million

   • 2024–25: 39,536 frauds → USD 213.5 million

2. Airtel Payments Bank

   • 2022–24: 44,587 frauds → USD 240.7 million

   • 2024–25: 19,642 frauds → USD 106 million

3. Axis Bank

   • 2022–24: 32,987 frauds → USD 178.1 million

   • 2024–25: 18,869 frauds → USD 101.9 million

4. ICICI Bank

   • 2022–24: 30,071 frauds → USD 162.4 million

   • 2024–25: 13,071 frauds → USD 70.5 million

Private Bank Fraud Losses Total: USD 1.135 billion

Public Sector Banks (Total: 54,908 frauds from 2022–24, 25,878 up to Dec 2024)

5. State Bank of India

   • 2022–24: 14,786 frauds → USD 79.8 million

   • 2024–25: 13,056 frauds → USD 70.5 million

6. Bank of Baroda

   • 2022–24: 12,063 frauds → USD 65.1 million

   • 2024–25: 8,468 frauds → USD 45.7 million

7. Punjab National Bank

   • 2022–24: 7,110 frauds → USD 38.4 million

   • 2024–25: 2,871 frauds → USD 15.5 million

8. Indian Bank

   • 2022–24: 6,059 frauds → USD 32.7 million

   • 2024–25: 2,137 frauds → USD 11.5 million

9. Indian Overseas Bank

   • 2022–24: 8,068 frauds → USD 43.5 million

   • 2024–25: 1,873 frauds → USD 10.1 million

10. Central Bank of India

    • 2022–24: 2,401 frauds → USD 12.9 million

    • 2024–25: 992 frauds → USD 5.3 million

11. Canara Bank

    • 2022–24: 158 frauds → USD 0.85 million

    • 2024–25: 413 frauds → USD 2.2 million

12. Punjab & Sind Bank

    • 2022–24: 244 frauds → USD 1.3 million

    • 2024–25: 238 frauds → USD 1.28 million

13. Union Bank of India

    • 2022–24: 3,168 frauds → USD 17.1 million

    • 2024–25: 222 frauds → USD 1.2 million

14. Bank of Maharashtra

    • 2022–24: 471 frauds → USD 2.5 million

    • 2024–25: 173 frauds → USD 0.9 million

15. UCO Bank

    • 2022–24: 172 frauds → USD 0.9 million

    • 2024–25: 130 frauds → USD 0.7 million

16. Bank of India

    • 2022–24: 208 frauds → USD 1.1 million

    • 2024–25: 125 frauds → USD 0.68 million

Public Sector Bank Fraud Losses Total: USD 743 million

Grand Total Loss Estimate:

USD 1.878 billion (~₹15,700 crores) from 2022 to Dec 2024

This is a conservative estimate. The actual loss could be significantly higher, especially in high-value corporate frauds and cybercrime cases.

Systemic Rot: Cosmetic Reforms, No Accountability

Despite repeated warnings, Indian banks—especially private ones—seem to be operating in a culture of digital gloss and internal chaos. Public funds, small savings, and digital wallets are being drained by systemic gaps, poor KYC enforcement, internal collusion, and regulatory indifference.

HDFC, ICICI, and Airtel Payments Bank alone account for over 70% of total reported frauds—an astonishing indictment of their risk and compliance frameworks.

AIBEA’s Blistering Rebuke and Demands

Speaking from Mumbai, AIBEA General Secretary C.H. Venkatachalam said:

“We have exposed the real face of Indian banking. Behind each fraud is a shattered life. The government must act now—not with more PR, but with prosecutions, audits, and protections for whistleblowers.”

The AIBEA demands:

• A judicial probe into banking frauds.

• Mandatory real-time fraud reporting dashboards by RBI.

• A dedicated fraud insurance fund.

• Whistleblower protection laws.

• CEO-level accountability and criminal liability for institutional failures.

Conclusion: A Confidence Crisis

India’s banking system, often hailed as a fintech giant, is hemorrhaging integrity. With losses nearing $2 billion, the scale of mismanagement is no longer deniable. This isn’t just a matter of figures—it’s a collapse of trust in an institution that holds the financial lifeblood of 1.4 billion people.

Without swift, radical reforms, the next fraud headline won’t shock—it will simply confirm what every citizen already fears: the banks are no longer safe.