Axis Bank witnesses high double-digit decline in frauds

The bank has pinpointed several regional hotspots nationwide for extensive mule‑account activity | Photo Credit:
REUTERS

Axis Bank, a private‑sector lender, recorded roughly a 30 % year‑on‑year drop in retail‑customer fraud in the previous fiscal year and is still experiencing a pronounced double‑digit reduction in both the volume and value of fraud attempts, thanks to its shift from rule‑based to AI‑driven fraud detection.

“We previously relied on rule‑based tools to spot fraud. Today we are swapping those for AI‑based solutions, which boosts our capacity to foresee and flag fraudulent activity earlier,” said Gaurav Gupta, Group Head – Financial Crime Intelligence at Axis Bank, speaking to reporters in Kolkata on Wednesday.

AI‑Driven Fraud Monitoring

Supported by its AI‑based fraud intelligence, real‑time customer safeguards and a robust branch network, Axis Bank recorded about a 40 % drop in fraud cases across retail mobile banking, internet banking and mall transactions in the last fiscal year versus the year before. Moreover, the number of digital frauds thwarted via AI monitoring and risk‑based controls rose 4.5‑times in FY26 compared to FY25.

When questioned about the trend in the current fiscal’s first quarter, Gupta noted, “Whether we look sequentially or year‑over‑year, fraud volume and value keep falling, with reductions that are markedly high double‑digit. The technology investments we have undertaken to strengthen banking security keep paying off.”

Against the backdrop of increasingly sophisticated digital threats—such as impersonation scams, bogus investment platforms, malicious apps and QR‑code tampering—the bank’s intelligence‑driven prevention framework facilitates early spotting and response to dubious transactions, real‑time behavioural analysis to spot anomalies, and network‑level insight to expose organized fraud rings.

Mule‑Account Hotspots

Fraudsters are increasingly leveraging organized networks, using mule accounts as intermediary layers that hide the trail of funds and allow swift shifting of illicit money across many accounts. Axis Bank has pinpointed several regional hotspots nationwide for large‑scale mule‑account activity. “In West Bengal, notable hotspots lie near the Bangladesh border; parts of Assam are also at risk. Additional hotspots exist in Bihar, Jharkhand, Haryana, Rajasthan, Madhya Pradesh and the outskirts of Chennai,” said Sameer Shetty, Group Head – Digital Business, Transformation & Strategic Programs at Axis Bank.

Shetty added that the bank’s move from rule‑based monitoring to predictive, adaptive risk management has markedly reduced the occurrence of mule hotspots and mule accounts.

“For these identified hotspots we have implemented product‑specific controls, intensified monitoring, and adjusted our internal monitoring system to treat transactions from these areas as marginally higher risk than elsewhere,” he concluded.

Published on June 17, 2026