Srinagar, July 21 (KNS): Jammu and Kashmir has witnessed a worrying rise in cyber and financial fraud cases over the last five years, with more than 830 cases reported and financial losses exceeding Rs 1 crore, official data from the Ministry of Finance has revealed.
The figures were shared in a written reply by Minister of State for Finance, Shri Pankaj Chaudhary, in the Lok Sabha on Monday. The data shows that as digital transactions increase across the country, frauds related to online payments, mobile banking, and digital lending have also gone up, including in J&K.
According to the official year-wise data, 105 fraud cases were reported in 2020-21 with losses of Rs 0.36 crore and no recovery. In 2021-22, the number of frauds dropped to 76, with Rs 0.14 crore lost and no amount recovered. The following year, 2022-23, saw 66 cases and losses of Rs 0.22 crore, of which only Rs 0.11 crore was recovered.
However, the numbers rose sharply in 2023-24, with 370 cases registered, although the total loss reported stood at Rs 0.15 crore and no recovery was made. For the financial year 2024-25 (up to the date of reporting), 215 frauds have already been recorded, with losses of Rs 0.21 crore and recovery of only Rs 0.01 crore.
In total, Jammu and Kashmir reported 832 cyber and digital financial frauds between 2020 and 2025. The cumulative financial loss stands at Rs 1.08 crore, while the total amount recovered over these five years is only Rs 0.12 crore, reflecting a poor recovery rate of just over 10 percent.
The reply in Parliament also stated that ‘Police’ and ‘Public Order’ are state subjects as per the Constitution.Click Here To Follow Our WhatsApp ChannelHence, the responsibility to prevent and investigate such crimes lies primarily with the Jammu and Kashmir administration. The Central Government supports states and Union Territories through advisories and funds for capacity building.
To strengthen digital payment security, the Reserve Bank of India issued Master Directions on Digital Payment Security Controls in 2021. These guidelines require all banks to implement a minimum level of security across digital platforms including mobile banking, internet banking, and card payments.
Awareness campaigns through SMS alerts, radio broadcasts, and public messages have also been launched by banks and the RBI to educate customers about cyber threats. The RBI has also introduced an AI-based tool called ‘MuleHunter’ to identify fake accounts (money mules) used in financial scams. Banks have been advised to use this tool for early detection.
The National Payments Corporation of India (NPCI) has also taken steps to improve UPI safety which include linking the mobile number to the device (device binding), enforcing two-factor authentication through PINs, setting daily transaction limits, and using AI and machine learning-based fraud monitoring systems to identify suspicious transactions.
Notably, Jammu & Kashmir Bank has reported only one fraud case under the category of digital payments and app-based lending during the entire five-year period. That case, reported in 2020-21, involved a loss of Rs 0.05 crore with no recovery reported.(KNS)