Published Paper Details:

Frauds in banking sector are increasing. This is a result of intruders using willful means. These fraudsters pose themselves as an authentic party to the transaction for small span of time and vanish after scam. The Indian financial institutions have grown to multiple folds after 1991 and equally faced challenges post liberalization. This has happened despite this sector was well supervised and handled through government regulations but the negative elements have also learnt to evolve newer ways to find alternate ways for doing frauds. The paper tries to highlight issues related mortgage, home loan and auto loan frauds, credit card frauds in recent times. The report touches upon the case of fraud instances caught during credit appraisal process. It emphasizes more upon KYC frauds and alternate routes opted by fraudsters to pose themselves under fitment of credit worthiness during loan approval. The observations suggest the way ahead in eradicating fraud losses and also highlights the roles of underwriting teams and audit departments of financial institutions. Role of credit underwriting team is essential as it is a deciding factor on disbursal of all ticket size across industry.