Kotak Mahindra Bank pitches for standardising fraud reporting to RBI

Kotak Mahindra Bank pitches for standardising fraud reporting to RBI

Kotak Mahindra Bank on Tuesday pitched at the RBI for a standardisation in fraud reporting, after data showed the private sector lender has been witnessing huge number of such cases.

The appeal from Kotak Mahindra Bank came days after reports citing official data said the lender reported 5,278 cases of fraud in the first quarter of FY23, as against only 9 for the nation’s largest lender SBI.The bank clarified on Tuesday that 97 per cent of the overall 5,000 incidents of fraud were due to customers unwittingly compromising their credentials by clicking on unknown links, or giving access to their devices or sharing their credentials with unscrupulous individuals willingly.

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The bank claimed it has been reporting frauds as per regulatory requirements which includes data on instances of skimming, phishing, vishing, e-commerce frauds, across debit cards, credit cards, UPI, mobile banking, internet banking and payment gateways.

It has been reporting data regardless of whether customers or the bank faced losses, or whether the fraud amounts were recovered eventually.