Rising Toll of Frauds in Banking: A Threat for the Indian Economy



Neha Sharma and Dhiraj Sharma


Banking is a process which predicts the relationship between sources of funds and their application. The basic process of banking helps the society to bridge the gap between availability and usage of these available funds in a correct manner. Over the years the banks have developed in a very big way, and with the growth of banking business, banking frauds have taken birth. The history of banking frauds is almost as old as the banking startup. Today, bank frauds have taken all possible forms and are prevalent in every facet of banking. There is a spirited need for banks to always stay alive to threat of frauds, build strong systems that can shield, pre-empt frauds, continuously monitor and review the efficiency of such preventive systems. To succeed in controlling frauds, banks need to be proactive and pre-emptive. This study establishes a theoretical framework with regards to banking frauds in the Indian context as well as shows the picture of frauds in banking sector outside India. By reviewing various studies in the area of banking frauds the paper built a research model which further helps to find out various types of frauds and reasons for the same, and will definitely give new scope to further studies. The present study sheds light on the area by reviewing various studies in the field of banking frauds. The study helps to find out the growth and trends of frauds in the banking sector and specially focuses on Indian Banking sector, as at present there are very few studies which give an in-depth insight of frauds in banking sector. Further the study also reviews the role of employee and customer with regard to banking fraud studied which is primarily needed in the context of Indian Banking system. The present study is conducted by collecting secondary data from the published and unpublished Sources, Government Publications, journals, magazines, books and periodicals etc


Banks, Frauds, Cyber Frauds, Prevention Techniques, Bank Employee Loyalty, Customer Satisfaction.


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RNI Registration No. CHAENG/2016/68678