Abstract: This study examines the trends, causes, and impacts of financial frauds in the Indian banking sector during the critical period 2015–2025. The research analyses how the transition from traditional banking to digital platforms influences the frequency and nature of banking frauds, encompassing corporate loan defaults (like PNB and DHFL) and retail cyber-frauds (UPI scams, phishing, and mule accounts). The study is based on a mixed-method approach, utilizing secondary data from RBI reports alongside primary data collected from 100 respondents. It applies statistical tools such as normality test, Pearson correlation analysis, and t-test. The findings indicate a severe vulnerability among the public, with a staggering 96% of respondents having been targeted by fraudulent communications and 42% facing direct financial encounters. While awareness of basic phishing is high, knowledge regarding "Money Mules" is dangerously low (6%). The study concludes that while banks have implemented advanced technological security measures, the "Human Element"—specifically customer ignorance and poor digital hygiene—remains the weakest link, necessitating mandatory financial literacy and AI-enhanced real-time monitoring.

Keywords: Financial Fraud, Indian Banking Sector, Cyber Fraud, Corporate Governance, Money Mules, Digital Banking, UPI Scams.

Downloads: | DOI: 10.17148/IARJSET.2026.13347