SMS scams in India surge 146% as mobile banking fraud grows faster and more costly, report shows

SMS-based scams in India jumped 146 per cent between late 2025 and early 2026, while mobile fraud sessions rose 67 per cent, according to a BioCatch report. Attackers are becoming faster and targeting higher-value transfers via mobile channels

New Delhi:Text‑message‑based scams and mobile fraud have surged sharply in India, with SMS scams up 146 per cent and mobile fraud sessions rising 67 per cent between the second half of 2025 and the first half of 2026 compared to the same period prior year, according to a report.

The report from BioCatch said the surge in mobile fraud sessions includes an 86 per cent increase on iOS devices and a 35 per cent rise on Android.

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Fraud is becoming faster and more costly as risky payment sessions doubled, median fraud session length fell by 32 per cent and the median transfer value per fraud session increased 1.7 times.

Meanwhile, web browser-based fraud sessions declined by 10 per cent, underscoring the continued shift toward mobile attack channels.

Investigators detected more than 8.5 lakh mule accounts across more than 700 branches of multiple Indian banks in 2025.

Cyber-fraud complaints in India reached Rs 22,496 crore in 2025, alongside 26.48 lakh mule cases, while Rs 9,055 crore was declined through the suspect registry.

“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,” said BioCatch Director of Global Fraud Intelligence Tom Peacock.

The report also noted 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.”

India’s rapid adoption of Unified Payments Interface (UPI), mobile banking, e-commerce, and online investment platforms has created a highly digital payments ecosystem that remains an attractive target for fraudsters.

“The encouraging news is that we’re seeing greater collaboration between banks, the Reserve Bank of India, the I4C, and law enforcement,” said BioCatch Global Advisory Director Subhashish Bose.

“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,” he added.