CRITICAL EVALUATION OF Legal MECHANISM GOVERNING BANKING FRAUDS WITH SPECIAL REFERENCE TO ONLINE FRAUDS

CRITICAL EVALUATION OF Legal MECHANISM GOVERNING BANKING FRAUDS WITH SPECIAL REFERENCE TO ONLINE FRAUDS

CRITICAL EVALUATION OF Legal MECHANISM GOVERNING BANKING FRAUDS WITH SPECIAL REFERENCE TO ONLINE FRAUDS

AUTHORS – RADHIKA* & DR. RAJIV BHALLA**, LL.M. (MASTER OF LAWS) SCHOLAR* & PROFESSOR**, UNIVERSITY INSTITUTE OF LEGAL STUDIES, CHANDIGARH UNIVERSITY, MOHALI, PUNJAB, INDIA

BEST CITATION – RADHIKA & DR. RAJIV BHALLA, CRITICAL EVALUATION OF Legal MECHANISM GOVERNING BANKING FRAUDS WITH SPECIAL REFERENCE TO ONLINE FRAUDS, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 4 (4) OF 2024, PG. 330-342, APIS – 3920 – 0001 & ISSN – 2583-2344.

Abstract

The advancements in an easily integrated method of automated banking have helped improve the customer experience while also becoming a threat to online banking fraud. This paper explores the Indian legal provisions to curb banking fraud, especially in the online platform, and the current developments, deficits, and recommendations. The legal framework comprises critical legislation, laws such as the Information Technology Act, 2000, and Bharatiya Nyaya Sanhita, 2023, along with the guidelines from the Reserve Bank of India (RBI). Nevertheless, some small steps have been made to fill in the gaps, though many of the advanced online fraud schemes are still unmet by legislative changes and tightening regulations. A comparative analysis of what applies in the US and the UK highlights gaps showing the lack of sufficient laws to address digital financial crimes together with roles for the regulatory authorities that are more proactive. Some of the factors that exert immense pressure on enforcement include jurisdictional problems, prosecutor problems, and the dynamic nature of fraud. To strengthen the procedure with measures against fraud, the paper provides recommendations: improving current legislation, developing international cooperation, and including such innovations as artificial intelligence, biometric identification, and blockchain. Equally important is training law enforcement agencies on the nature of cybercrime and awareness creation. Synergizing the legal and regulatory perspective with technological solutions for combating online banking fraud would go a long way toward the realization of a secure and more resilient financial system in India.

Keywords: Online banking fraud, Cybersecurity regulations, Artificial intelligence, fraud prevention

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