Banks See 146% Rise in SMS Based Scams

 Mumbai: A new report shows a sharp escalation in fraud in India originating from mobile devices, with reported cases of text-message-based scams increasing 146 per cent between the second half of 2025 and the first half of 2026 compared to the same period a year earlier.

Mobile fraud sessions rose 67 per cent overall during the period, including an 86 per cent increase on iOS devices and a 35 per cent increase on Android. Meanwhile, web browser-based fraud sessions declined by 10 per cent, underscoring the continued shift toward mobile attack channels. Fraud sessions were found to be shorter and more automated.

“Fraudsters are completing attacks more quickly and with less data entry. Sessions with active phone calls are increasing. More fraud now involves phone calls in which fraudsters guide victims through every step of a transfer process, keeping them engaged and preventing them from consulting others, said the report.

While banks are detecting and blocking Remote access trojan (RAT) attacks, the auto-filling of credentials continues to grow more prevalent, suggesting institutions should focus more on malware detection.

“SMS scams are particularly effective because they exploit trusted communication channels, making fraudulent messages appear legitimate and prompting customers to act before they stop to question what they're seeing,” BioCatch Director of Global Fraud Intelligence Tom Peacock said.

BioCatch, which prevents fraud, scams, and financial crime by recognizing patterns in human behavior, published these findings based off proprietary data from its customers in India. The data also shows a 35 per cent increase in the total value of attempted fraud payments, while average call length declined 31 per cent and median fraud session length fell by 32 per cent.

“The combination of higher-value fraud attempts and shorter calls and sessions tells us attackers are becoming far more efficient,” Peacock said. “Scams are increasingly refined, with criminals using well-rehearsed social engineering and automated techniques to persuade victims and move money before warning signs appear.”

“The encouraging news is that we’re seeing greater collaboration between banks, the Reserve Bank of India, the I4C, and law enforcement,” BioCatch Global Advisory Director Subhashish Bose said. “Behavioral intelligence helps banks move beyond point-in-time authentication to continuous assessment of user intent, enabling them to detect scams earlier and respond more quickly.”