India's Largest Fraud Recovery Delayed by Bank Gaps, ₹11,158 Crore Saved

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Operational challenges in the Cyber Fraud Mitigation Centre (CFMC) have emerged despite significant savings from cyber fraud interventions, as banks fail to provide critical access and resources to personnel.

Operational Challenges in Cyber Fraud Mitigation

A collaborative assessment revealed that multiple banks have not granted essential banking and technical access to CFMC personnel, creating bottlenecks in fraud recovery. This has raised concerns about the system’s ability to rapidly intercept illicit transactions.

Banks Failing to Grant Access

Major banks, including the State Bank of India, Punjab National Bank, Union Bank of India, and others, have not provided Core Banking System (CBS) access to CFMC representatives. This omission hinders their ability to verify suspicious accounts and freeze transactions in real time.

State Bank of India
Punjab National Bank
Union Bank of India
Indian Bank
Canara Bank
Bank of India
UCO Bank
Punjab & Sind Bank
Bank of Maharashtra
IDBI Bank
Yes Bank
Bandhan Bank
Uttar Pradesh Cooperative Bank

Infrastructure Gaps in CFMC Operations

Six banks—Union Bank of India, UCO Bank, Punjab & Sind Bank, Bank of Maharashtra, IDBI Bank, and Bandhan Bank—have not supplied laptops to CFMC representatives. Combined with restricted CBS access, this undermines the efficiency of fraud response operations.

CFMC’s Role and Achievements

The CFMC, established in Uttar Pradesh on June 1, 2026, serves as a centralized hub for collaboration between police, banks, and financial institutions. It has addressed over 32.80 lakh complaints, saving ₹11,158 crore from fraudulent losses. A Money Restoration Module launched in April 2026 aims to expedite fund recovery.

Urgent Need for Immediate Action

Delays in accessing core banking systems or technical resources can allow fraudsters to disperse funds across multiple accounts, complicating recovery. Prompt reporting by victims and timely support for CFMC personnel are critical to intercepting fraudulent transactions before they become irretrievable.

Call to Action for Banks and Victims

Banks must ensure CFMC representatives have the necessary tools and access to act swiftly. Victims of cyber fraud are urged to contact the 1930 helpline immediately upon discovering a fraudulent transaction to maximize recovery chances.

“The criticality of immediate action in cyber fraud cases cannot be overstated. Within the initial minutes after a breach, perpetrators often transfer stolen funds across multiple accounts, complicating recovery efforts.”