INTERNET BANKING FRAUDS: A COMPREHENSIVE ANALYSIS

AUTHORS – ABHISHEK BHADANA* & PROF (DR.) AQUEEDA KHAN**, PURSUING LLM* & PROFESSOR**, AMITY LAW SCHOOL, NOIDA.

BEST CITATION – ABHISHEK BHADANA & PROF (DR.) AQUEEDA KHAN, INTERNET BANKING FRAUDS: A COMPREHENSIVE ANALYSIS, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 4 (2) OF 2024, PG. 1346-1350, APIS – 3920 – 0001 & ISSN – 2583-2344

ABSTRACT

The rise of internet banking has brought convenience but also increased the risk of fraud. This analysis explores the main types of internet banking frauds, such as phishing, malware, and identity theft, highlighting the tactics used by cybercriminals and the weaknesses they exploit. The study also reviews the financial impact, current security measures, and legal protections, offering insights into improving fraud prevention and enhancing the security of online banking systems. This version is concise and directly addresses the core aspects of the topic. Internet banking frauds have emerged as a significant threat to the global financial ecosystem, posing serious challenges to individuals, businesses, and financial institutions alike. The advent of digital banking, while offering unparalleled convenience and efficiency, has also opened up new avenues for cybercriminals to exploit vulnerabilities in online systems. This paper provides a comprehensive analysis of internet banking frauds, delving into the various methods employed by fraudsters, the underlying causes of these incidents, and the impact they have on the economy.In recent years, the proliferation of online banking has been accompanied by a surge in fraudulent activities, ranging from phishing attacks and identity theft to more sophisticated techniques such as man-in-the-middle attacks and malware-based intrusions. These methods often exploit the weakest link in the security chain—human behavior. Social engineering tactics, where individuals are tricked into revealing sensitive information or performing actions that compromise their accounts, are increasingly prevalent. The rapid evolution of these fraud techniques has made it difficult for security measures to keep pace, leading to significant financial losses and a loss of trust in digital banking platforms.Moreover, the global nature of internet banking has introduced complexities jurisdiction and regulation, as fraudulent activities can originate from any part of the world, making it challenging to track and prosecute perpetrators. This cross-border aspect complicates the enforcement of legal frameworks and highlights the need for international cooperation in combating cybercrime.