Cyber Crime Surge in India: Bank Insider Leaks, OTP Scams & RBI Pilot

Why cyber crime is trending in India

A 2026 survey of 8,306 respondents across 16 states and union territories found that 13% had experienced a cyber offence in the past two to three years. Of those, more than half—54%—suffered digital financial fraud, and 63% reported the incident within 24 hours. source

Bank insider leaks and mule accounts

Among victims who lodged a complaint with their bank, 40% believed that their financial data had been leaked by a bank insider. Even among those who did not file a separate complaint, 26% held the same view, highlighting gaps in internal controls and account‑opening diligence that can enable criminals to create mule accounts. source

Common scam tactics – cancellation OTP fraud

Scammers often send a fake delivery notice for a cash‑on‑delivery order that the victim never placed and ask for a cancellation OTP. Once the OTP is shared, the fraudster gains access to the victim’s bank account. This tactic has cost many people money and is widely reported. source

RBI guidelines and pilot

The Reserve Bank of India’s 2017 guideline states that if a customer notifies the bank within three days of a third‑party breach and there is no customer deficiency, the bank bears the loss. In 2026, this rule was extended on a pilot basis to include cases where the customer was tricked or coerced into making a scam payment, but the bank’s liability is limited in such cases. source

Practical safety tips

• Never share OTPs, UPI PINs or passwords with anyone, even if the request looks legitimate. source
• Verify unexpected delivery or payment requests by checking the order history in the official app before providing any code. source
• Enable multi‑factor authentication and change passwords regularly. source
• Report suspicious activity immediately to the national helpline 1930 or the National Cyber Crime Reporting Portal. source
• Save screenshots of fraudulent messages, transaction receipts and caller details for investigators. source