Indian Minister of State for Finance Pankaj Chaudhary told the country's parliament that there has been a significant increase in financial fraud cases during the last five years. According to data from the Reserve Bank of India (RBI), there has been a marked rise in fraud incidents involving credit cards, ATM or debit cards, and internet banking.

The number of reported fraud cases has skyrocketed from 2,677 in the financial year 2019-20 to an alarming 29,082 in 2023-24. This shows a staggering 986 per cent increase.&nbsp;

<h2>What does it mean?</h2>

It simply shows fraudsters' growing sophistication and exposes vulnerabilities within the financial system.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/services-of-300-indian-banks-collapse-after-ransomware-attack-hits-tech-firm-746056">Services of 300 Indian banks collapse after ransomware attack hits tech firm</a>

At the same time, it also points to an urgent need for enhanced security measures as well as public awareness to protect individuals and the financial system at large.

<h2>What is the financial impact of these frauds?</h2>

The financial impact of these frauds has been equally concerning. The total amount involved surged from ₹129 crore ($15.4 mn) in FY 2019-20 to ₹1,457 crore ($173.9mn) in FY 2023-24, marking a dramatic increase of 1,068 per cent.

Despite some progress in recovering funds, these efforts have not kept pace with the scale of fraud. The amount recovered increased from ₹12 crore ($1.43mn) in FY 2019-20 to ₹139 crore ($16.59 mn)&nbsp;in FY 2023-24, an improvement of 1,058 per cent.&nbsp;

Also watch |&nbsp;India's digital payments boom causes spike in online payment fraud

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But the recovery rate remains relatively low, with only 9.5 per cent of the total fraudulent amounts being reclaimed in the most recent financial year, up slightly from 9.3 per cent five years ago.

Among the various types of financial fraud, those involving the Aadhaar Enabled Payment System (AePS) have been particularly problematic. These frauds often involve the compromise of Aadhaar numbers and biometric data, leading to unauthorised transactions.

(With inputs from agencies)

Indian Minister of State for Finance Pankaj Chaudhary told the country's parliament that there has been a significant increase in financial fraud cases during the last five years.

Indian Minister of State for Finance Pankaj Chaudhary told the country's parliament that there has been a significant increase in financial fraud cases during the last five years. According to data from the Reserve Bank of India (RBI), there has been a marked rise in fraud incidents involving credit cards, ATM or debit cards, and internet banking. The number of reported fraud cases has skyrocketed from 2,677 in the financial year 2019-20 to an alarming 29,082 in 2023-24. This shows a staggering 986 per cent increase. What does it mean? It simply shows fraudsters' growing sophistication and exposes vulnerabilities within the financial system. Also read | Services of 300 Indian banks collapse after ransomware attack hits tech firm At the same time, it also points to an urgent need for enhanced security measures as well as public awareness to protect individuals and the financial system at large. What is the financial impact of these frauds? The financial impact of these frauds has been equally concerning. The total amount involved surged from ₹129 crore ($15.4 mn) in FY 2019-20 to ₹1,457 crore ($173.9mn) in FY 2023-24, marking a dramatic increase of 1,068 per cent. Despite some progress in recovering funds, these efforts have not kept pace with the scale of fraud. The amount recovered increased from ₹12 crore ($1.43mn) in FY 2019-20 to ₹139 crore ($16.59 mn) in FY 2023-24, an improvement of 1,058 per cent. Also watch | India's digital payments boom causes spike in online payment fraud × But the recovery rate remains relatively low, with only 9.5 per cent of the total fraudulent amounts being reclaimed in the most recent financial year, up slightly from 9.3 per cent five years ago. Among the various types of financial fraud, those involving the Aadhaar Enabled Payment System (AePS) have been particularly problematic. These frauds often involve the compromise of Aadhaar numbers and biometric data, leading to unauthorised transactions. (With inputs from agencies)

India records 986 per cent surge in financial fraud cases in last five years

UK and US regulators were aware of and participated in a state-led effort to manipulate interest rates during the 2008 financial crisis. As per a BBC report, newly uncovered evidence suggests that the regulators concealed this information.

The evidence as cited by the BBC report suggests that lenders made a significant cut to their interest rate estimates under pressure from central banks. However, when bankers were later prosecuted for smaller-scale interest rate "rigging", this evidence was not presented in court.&nbsp;

While regulators have previously faced allegations of involvement in interest rate manipulation, this evidence reveals a broader international effort by central banks across the Western world.&nbsp;

Allegedly, central banks, including the Bank of England, Banque de France, European Central Bank, Banca d'Italia, Banco de Espana, and the Federal Reserve Bank of New York, intervened extensively in setting Libor and Euribor rates — benchmark interest rates that track how much it costs banks to borrow from one another — in October 2008.&nbsp;

These actions were apparently aimed at artificially restoring calm to the market during a time when bank lending was nearly held up.

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The evidence, which was reportedly disclosed to investigating agencies such as the FBI and UK's Financial Services Authority (FSA) in November 2010, was never made public and has been kept secret from Parliament, Congress, and the public.&nbsp;

This information suggests that Parliament may have been "misled" said Andrew Tyrie, the former chair of the UK Treasury Committee of MPs during the Libor inquiry.

In a conversation with BBC, he said that "the evidence that Mr Verity** has unearthed strongly suggests that the committee's inquiry into the Libor scandal was not told the whole truth."&nbsp;

**Financial Journalist Andy Verity is currently working as BBC News' economic correspondent and is behind the newly uncovered evidence.

"The public rely on Parliament to get to the truth. This case illustrates why Parliament should bolster its information-gathering powers with more effective sanctions against those who provide less than the full picture. Parliament appears to have been misled and, if that's the case, should not let it rest," said Tyrie.

The suppressed evidence that as per Verity's report indicates a potential cover-up is a recording from 2010 of an interview between FBI investigator Mike Kelly and Peter Johnson, a Barclays bank employee responsible for submitting Libor rates.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/the-turnaround-story-of-indias-public-sector-banks-594985">The Turnaround Story of India's Public Sector Banks</a>

In the interview, Johnson reveals that in October 2008, he was instructed by his superiors to report artificially low Libor rates that were significantly below the actual interest rates available in the market. He claims that this instruction came under pressure from both the Bank of England and the UK government.

The recording also indicates that the French banks were similarly pressured by the Banque de France.&nbsp;

In the recording, Kelly can be heard asking Johnson: "Did you have any understanding as to why this pressure was being put upon Barclays?"

To this, Johnson replies: "I'm not sure that it was being put just on Barclays."

Kelly: "OK? Who else did you think, was being pressured?"

Johnson: "We understood that the French banks had been told to get their rates down[...]"

Kelly: "What entity was pressuring them?"

Johnson: "We believe it was the Banque du France."

Published data on Euribor submissions during that period support these claims, showing "record falls in banks' estimates of the cost of borrowing euros by French banks - moves only explicable as having been co-ordinated at a national level," writes Verity.

Senior Conservative MP David Davis has called for a fresh investigation, expressing concerns that Parliament may have been misled.&nbsp;

The MP said that the evidence points to "a case to believe that state agencies coerced individuals into perjury that led to false convictions".&nbsp;

The US Department of Justice and the UK's Serious Fraud Office have prosecuted 37 traders for Libor manipulation. However, the prosecutions were done in the absence of this evidence.

The regulators involved have either declined to comment, rebutted the claims, or stated that they followed disclosure rules. The Bank of England labelled the allegations "unsubstantiated," while the European Central Bank "strongly rebut" the assertions which it said "misrepresent the role of a central bank in implementing monetary policy". Responding to the allegations, Italian bank Intesa Sanpaolo has reportedly emphasised that it has always acted independently and in full compliance with rate-setting rules. As per Verity, the FBI and the Commodity Future Trading Commission (CFTC) have declined to comment.

(With inputs from agencies)

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UK and US regulators were aware of and participated in a state-led effort to manipulate interest rates during the 2008 financial crisis. As per a BBC report, newly uncovered evidence suggests that the regulators concealed this information.

UK and US regulators were aware of and participated in a state-led effort to manipulate interest rates during the 2008 financial crisis. As per a BBC report, newly uncovered evidence suggests that the regulators concealed this information. The evidence as cited by the BBC report suggests that lenders made a significant cut to their interest rate estimates under pressure from central banks. However, when bankers were later prosecuted for smaller-scale interest rate "rigging", this evidence was not presented in court. While regulators have previously faced allegations of involvement in interest rate manipulation, this evidence reveals a broader international effort by central banks across the Western world. Allegedly, central banks, including the Bank of England, Banque de France, European Central Bank, Banca d'Italia, Banco de Espana, and the Federal Reserve Bank of New York, intervened extensively in setting Libor and Euribor rates — benchmark interest rates that track how much it costs banks to borrow from one another — in October 2008. These actions were apparently aimed at artificially restoring calm to the market during a time when bank lending was nearly held up. Also read | Will Indians be able to spend using ₹1000 notes again? RBI governor responds The evidence, which was reportedly disclosed to investigating agencies such as the FBI and UK's Financial Services Authority (FSA) in November 2010, was never made public and has been kept secret from Parliament, Congress, and the public. This information suggests that Parliament may have been "misled" said Andrew Tyrie, the former chair of the UK Treasury Committee of MPs during the Libor inquiry. In a conversation with BBC, he said that "the evidence that Mr Verity** has unearthed strongly suggests that the committee's inquiry into the Libor scandal was not told the whole truth." **Financial Journalist Andy Verity is currently working as BBC News' economic correspondent and is behind the newly uncovered evidence. "The public rely on Parliament to get to the truth. This case illustrates why Parliament should bolster its information-gathering powers with more effective sanctions against those who provide less than the full picture. Parliament appears to have been misled and, if that's the case, should not let it rest," said Tyrie. The suppressed evidence that as per Verity's report indicates a potential cover-up is a recording from 2010 of an interview between FBI investigator Mike Kelly and Peter Johnson, a Barclays bank employee responsible for submitting Libor rates. Also read | The Turnaround Story of India's Public Sector Banks In the interview, Johnson reveals that in October 2008, he was instructed by his superiors to report artificially low Libor rates that were significantly below the actual interest rates available in the market. He claims that this instruction came under pressure from both the Bank of England and the UK government. The recording also indicates that the French banks were similarly pressured by the Banque de France. In the recording, Kelly can be heard asking Johnson: "Did you have any understanding as to why this pressure was being put upon Barclays?" To this, Johnson replies: "I'm not sure that it was being put just on Barclays." Kelly: "OK? Who else did you think, was being pressured?" Johnson: "We understood that the French banks had been told to get their rates down[...]" Kelly: "What entity was pressuring them?" Johnson: "We believe it was the Banque du France." Published data on Euribor submissions during that period support these claims, showing "record falls in banks' estimates of the cost of borrowing euros by French banks - moves only explicable as having been co-ordinated at a national level," writes Verity. Senior Conservative MP David Davis has called for a fresh investigation, expressing concerns that Parliament may have been misled. The MP said that the evidence points to "a case to believe that state agencies coerced individuals into perjury that led to false convictions". The US Department of Justice and the UK's Serious Fraud Office have prosecuted 37 traders for Libor manipulation. However, the prosecutions were done in the absence of this evidence. The regulators involved have either declined to comment, rebutted the claims, or stated that they followed disclosure rules. The Bank of England labelled the allegations "unsubstantiated," while the European Central Bank "strongly rebut" the assertions which it said "misrepresent the role of a central bank in implementing monetary policy". Responding to the allegations, Italian bank Intesa Sanpaolo has reportedly emphasised that it has always acted independently and in full compliance with rate-setting rules. As per Verity, the FBI and the Commodity Future Trading Commission (CFTC) have declined to comment. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

UK, US banking regulators were instructed to 'rig' interest rates during 2008 financial crisis: Report

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India records 986 per cent surge in financial fraud cases in last five years

UK, US banking regulators were instructed to 'rig' interest rates during 2008 financial crisis: Report