Cyber Frauds in Digital Banking: Legal Challenges and Preventive Framework in India
Digital banking has brought a significant transformation in the Indian banking system by providing fast, convenient, and accessible financial services. The introduction of internet banking, mobile banking, and digital payment systems such as UPI has reduced dependency on physical banking. However, this rapid digitalization has also led to a sharp increase in cyber frauds. Fraudsters exploit both technological systems and human behaviour to carry out unauthorized transactions. This paper examines various types of cyber frauds in digital banking, analyses the legal framework governing such crimes in India, and identifies major challenges in prevention and enforcement. It further suggests practical measures for strengthening fraud prevention mechanisms in the banking sector. The study highlights that along with strong legal provisions, awareness and technological safeguards are essential to ensure safe digital banking.
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