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Fraud value surges 4X to Rs 48,021 crore; Banks, NBFCs face rising digital lending risks: Report

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Fraud value surges 4X to Rs 48,021 crore; Banks, NBFCs face rising digital lending risks: Report

Fraud value surges 4X to Rs 48,021 crore; Banks, NBFCs face rising digital lending risks: Report

Suspected fraud in lending applications rose nearly fourfold to Rs 48,021 crore in FY26 even as anomaly volumes fell 72%, pointing to a shift towards fewer but higher-value attacks. Insurance and digital financial services are also emerging as key fraud hotspots, according to a latest Experian report.

India's banking, lending and insurance sectors are facing a growing mismatch between the volume and value of fraud, with the amount involved in suspected loan application anomalies nearly quadrupling to Rs 48,021 crore in FY26 from Rs 12,230 crore in FY24, according to a latest report by Experian. Data from the Reserve Bank of India's Annual Report 2025-26, cited by Experian, showed that the number of anomalies in applications across lending institutions declined from 36,060 in FY24 to 10,114 in FY26, a fall of nearly 72%. In contrast, the amount involved increased almost fourfold during the same period. Advt

For banks, NBFCs and fintech lenders, the sharper concern is the rising value attached to individual suspected cases. 75 crore during the period, indicating that fraud exposure is becoming increasingly concentrated in higher-value cases. PSBs account for bulk of suspected fraud value Public sector banks recorded the largest increase in the value involved in suspected application anomalies. The amount rose from Rs 9,254 crore in FY24 to Rs 35,709 crore in FY26, even as the number of anomalous applications declined from 7,460 to 5,418.



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