Indian Banks Report 146% Spike In SMS-Based Scams As Mobile Fraud Surges
Bengaluru : Indian banks have witnessed a sharp rise in text-message-based financial frauds, with SMS scams increasing by 146% during the first half of 2026 compared to the same period last year, according to a new report released by fraud prevention firm BioCatch.
The report highlights a significant shift in cybercrime, with fraudsters increasingly targeting mobile users instead of traditional web-based channels. Overall mobile fraud sessions increased by 67%, including an 86% rise on Apple’s iOS devices and a 35% increase on Android devices. In contrast, browser-based fraud attempts declined by 10%, indicating that cybercriminals are focusing more on smartphones.
BioCatch Director of Global Fraud Intelligence Tom Peacock said SMS scams continue to be highly effective because fraudsters exploit trusted communication channels to make fake messages appear genuine.
“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,” Peacock said.
The report also found that the total value of attempted fraudulent transactions increased by 35%, even as fraudsters completed attacks more quickly. Average fraud-related call duration fell by 31%, while the median fraud session length declined by 32%, suggesting criminals are using more sophisticated social engineering techniques and automation to deceive victims.
India’s rapid adoption of Unified Payments Interface (UPI), mobile banking, e-commerce and digital investment platforms has created one of the world’s largest digital payment ecosystems, making it an attractive target for cybercriminals.
Despite the increase in high-value fraud attempts, BioCatch noted that banks using its behavioural intelligence platform recorded a 12% decline in attempted fraud sessions, indicating that advanced fraud detection systems are helping financial institutions counter evolving threats.
BioCatch Global Advisory Director Subhashish Bose said collaboration among banks, the Reserve Bank of India (RBI), the Indian Cyber Crime Coordination Centre (I4C) and law enforcement agencies has strengthened fraud prevention efforts.
“Behavioural 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,” Bose said.
The report urges banks to continue investing in behavioural analytics and real-time fraud detection as mobile-based financial scams become faster, more sophisticated and increasingly difficult to identify.