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According to a report by BioCatch titled 'Digital Banking Fraud Trends in India 2026', there has been a staggering 146% increase in scams conducted via text messages. This indicates a rapid shift towards scam-based attacks within the country's digital fraud landscape. The report highlights that the rapid growth of Unified Payments Interface (UPI), mobile banking, e-commerce, and online investment platforms has made India's fraud ecosystem increasingly digital, large-scale, and scam-oriented. Although there has been a 12% decrease in attempted fraud sessions among BioCatch's clients, the total value of fraudulent payment attempts has surged by 35%. This suggests that fraudsters are now targeting transactions of higher value.

The report further states that UPI, investment scams, impersonation, and digital arrest scams are contributing to the rapidly growing 'money mule' ecosystem in India. Text message scams have emerged as one of the fastest-growing methods of fraud, as cybercriminals increasingly use SMS to lure victims into sharing sensitive information or approving fraudulent transactions. The report also sheds light on the evolving tactics of fraud, noting that risky payment sessions have doubled, while the median amount transferred in each fraudulent session has increased by 1.7 times. Additionally, the average duration of phone calls has decreased by 31%, and the median length of sessions has dropped by 32%, indicating that fraudsters are now executing attacks more swiftly and efficiently.

BioCatch has observed that fraud is becoming increasingly automated, with a higher usage of autofill tools for login credentials, enabling criminals to launch attacks more rapidly. While improved detection systems in banks have led to a decline in Remote Access Trojan (RAT) attacks, the rise in credential autofill usage suggests that financial institutions need to enhance their malware detection capabilities.

The report also notes that most fraudulent cases now involve active phone calls, where fraudsters maintain contact with victims during the payment process, guiding them at every step and preventing them from seeking help or verifying transactions independently. According to BioCatch, the banking industry has responded to these challenges through improved reporting of financial crimes, AI-based fraud detection technologies, and enhanced collaboration among banks, the Reserve Bank of India (RBI), the Indian Cyber Crime Coordination Centre (I4C), and law enforcement agencies.