Abstract

A robust banking sector is crucial to the Indian economy's infrastructure. The rise of bank fraud is a growing concern in the financial industry. The Indian banking system is prone to corruption and fraud due to a lack of transparency and tribalism. This study will delve into the issue of Banking fraud and types of fraud in the banking sector and how the loopholes of banking policies give rise to the high scale of fraud in the past. While banks are not able to create a completely fraud-proof environment, they can reduce risks by conducting comprehensive risk assessments of their operations and policies. Further in this study, we will see some landmark cases and scams that questioned the banking policies and their effectiveness in regulating frauds and how regulatory agencies and governments can use proactive data mining and forensic data analysis to tackle increasingly sophisticated fraud. As financial fraud is a global issue, a robust international framework is necessary to combat these criminals. This study will indicate that public sector entities are particularly susceptible, necessitating increased vigilance by authorities. However, it should be noted that there are various ways to understand financial fraud, and this study has a limited scope.

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