Rising digital fraud pushes banks to give customers more control over online transactions

As India’s digital footprint expands, so does the threat of online fraud. With over 86% of households now connected to the internet, banking and payments have rapidly shifted to mobile apps, internet platforms and UPI. While this has made financial services more accessible, it has also opened new avenues for cybercriminals.

Fake messages, phishing links and unauthorised account access have become common tools to target unsuspecting customers. According to data compiled by the Indian Cyber Crime Coordination Centre under the Union Ministry of Home Affairs, Indians have lost more than ₹52,976 crore to fraud and cheating over the past six years.

In response to this growing threat, banks are increasingly redesigning digital security around customer control. Axis Bank has rolled out a new feature called ‘Safety Centre’ on its mobile banking app ‘open’, allowing users to manage key banking functions in real time without having to contact customer support or visit a branch.

The Safety Centre enables customers to disable internet banking access, stop fund transfers, restrict UPI payments, block online shopping through net banking, prevent the addition of new payees, and set transaction limits. It also includes ‘SMS Shield’, which verifies the authenticity of messages by checking the sender ID against the bank’s official records.

According to the bank, changes made through the Safety Centre take effect instantly, allowing customers to act within seconds if they spot suspicious activity. By enabling selective and immediate blocking of services, the feature aims to reduce the risk of unauthorised transactions and limit potential losses.

Sameer Shetty, Group Executive – Digital Business, Transformation & Strategic Programs, Axis Bank, said the move reflects the bank’s focus on putting security directly in the hands of customers. He added that layered protection through features such as SMS Shield and in-app mobile OTP is designed to strengthen safeguards while keeping digital banking seamless and reliable.

The Safety Centre builds on Axis Bank’s broader Safe Banking programme, which includes tools like ‘Lock FD’ to prevent premature closure of fixed deposits through digital channels and in-app OTP generation to curb SMS-based fraud.

The urgency behind such measures is underscored by the scale of cybercrime in India. Government data shows that authorities have blocked over 9.42 lakh SIM cards and 2,63,348 IMEIs linked to cyber fraud, while the national helpline 1930 now offers round-the-clock support to victims. Reflecting the seriousness of the issue, the Union Budget 2025–26 allocated ₹782 crore for cybersecurity initiatives.

Cyber incidents have surged from 10.29 lakh in 2022 to 22.68 lakh in 2024. Losses reported in 2025 alone stood at ₹19,812.96 crore across more than 21.7 lakh complaints. Maharashtra, Karnataka, Tamil Nadu, Uttar Pradesh and Telangana accounted for the highest losses, reflecting greater exposure in digitally active states.

As fraudsters exploit speed and deception, banks are responding with tools that give customers faster control — recognising that in digital security, every second now matters.