State Bank of India (SBI) customers have collectively lost more than ₹6,313 crore across over 30,700 fraud cases between April 2023 and March 2026, according to information obtained under the Right to Information (RTI) Act. The data highlights UPI and internet banking as the most frequently exploited channels by cybercriminals, underscoring the escalating risks associated with digital financial transactions.
Digital Channels Emerge as Primary Targets
The RTI reply, furnished by SBI's fraud prevention and monitoring department to Nagpur-based activist Abhay Kolarkar, indicates a significant vulnerability in digital banking platforms. UPI accounted for the highest number of fraud cases, totaling 12,868, while internet banking recorded 8,657 incidents. Together, these two digital channels were involved in over 21,500 fraud cases during the three-year period.
While the overall number of fraud cases decreased from 14,717 in 2023-24 to 2,247 in 2025-26, the average value per fraud case has risen substantially. In the last financial year alone (2025-26), the amount involved stood at ₹1,745.23 crore, suggesting a shift towards fewer but higher-value scams.
Evolving Fraud Tactics and Employee Involvement
The report also detailed a change in modus operandi for fraudsters. Earlier scams frequently involved phishing links and fake calls. However, more recent incidents utilize sophisticated methods such as fake investment applications, screen-sharing manipulation, remote access tools, and cloned trading platforms. This evolution points to criminals adapting their strategies to exploit human vulnerabilities rather than relying solely on technical hacking.
West Bengal was identified as the state with the highest number of fraud cases, recording 3,426 incidents amounting to ₹143.67 crore during the period. SBI did not provide comparable figures for other states.
Disturbingly, the data also revealed a pattern of fraud cases involving SBI employees. A total of 303 such cases were reported, leading to losses of ₹311.08 crore. While the number of employee-linked fraud cases saw a slight decline, the total amount involved in 2025-26 alone exceeded ₹103 crore.
The Rise of 'Digital Arrest' Scams and Expert Insight
The RTI response noted that SBI does not maintain separate detailed data on increasingly reported "digital arrest" scams. These schemes involve fraudsters impersonating law enforcement or regulatory officials to pressure victims into transferring money under threat of arrest or legal action.
Cybercrime expert and former IPS officer Prof. Triveni Singh commented on the findings, stating that while the digital payment ecosystem offers convenience, it has simultaneously expanded opportunities for cybercriminals. He emphasized that fraudsters are increasingly leveraging psychological manipulation—using fear, greed, and urgency—to ensnare victims, highlighting that despite improved banking security, criminals continue to adapt by exploiting human vulnerabilities and social engineering tactics.
“The digital payment ecosystem has brought convenience and speed, but has also expanded opportunities for cybercriminals. Fraudsters now rely more on psychological manipulation than technical hacking, using fear, greed and urgency to trap victims.”
— Prof. Triveni Singh, Cybercrime Expert and former IPS Officer
The comprehensive three-year data from SBI highlights the broad spectrum of fraud activity across digital banking channels, cybercrime incidents, and employee-linked malpractices. It also points to data gaps, such as the absence of specific records for digital arrest scams, underscoring the growing risks faced by customers as digital banking becomes an integral part of daily financial activities.