Dr. Anuradha Girme, Assistant Professor Bharati Vidyapeeth (Deemed to be University) New Law College
Mahima Raj, LL.M, BVDU New Law College
ABSTRACT
The rising fraud in the banking sector is booming at the grassroots level. For the last few years, Indian media's sensational news items have been related to banking frauds and scams. The smooth running of an economy is largely influenced by the banking sector. Any fraud or scam at any level of banking will hit the foundation of an economy. The banking sector is one of the most important pillars of democracy. People believe in banking systems and their policies because they deposit their hard-earned money in the bank, and in return, all they expect is the safety of their money. Any fraud or scam done by star fraudsters shakes the people and the entire nation from the core. More the advancement in technology more the way of fraud. There are various types of frauds- loan fraud, phishing fraud, money transfer fraud, money laundering fraud, cheque kiting, cheque fraud, Letters of credit, Letters of understanding, Cyber fraud, OTP frauds, etc.,
Banking fraud consists of all sorts of cheating, nuisance, swindling, criminal breach of trust, and manipulation of negotiable instruments, i.e., cheques, drafts, bills, forgeries, etc. The main reason behind the fraud is - Poor levels of checks and balances, lack of alertness before and after disbursing a loan, lack of awareness in people not to share their account number, Card Verification Value number (CVV), One Time Passwords (OTPs) on call to anyone, etc.,
Star fraudsters just because of their good connections with politicians, businesspersons, etc., get their loans passed easily, and when it comes to repaying them, they prefer to leave their respective countries and move to another country. And in other countries, they live their lives while trying to explore the frauds in different sectors, viz., the public, private, and cooperative sectors.
Keywords: Fraud, Fraudster, Scam, Forgeries, RBI
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