SMS Scams in India Surge 146%

SMS-based scams and mobile banking fraud have risen sharply in India as criminals increasingly target customers through mobile channels and higher-value payment transactions.

According to a BioCatch report, SMS scams increased by 146% between the second half of 2025 and the first half of 2026, compared with the corresponding period a year earlier. Mobile fraud sessions rose by 67% during the same period.

The increase was particularly significant on Apple devices, where fraud sessions climbed by 86%. Android devices recorded a 35% rise. In contrast, fraud conducted through web browsers declined by 10%, indicating a continued shift towards smartphones and mobile banking applications.

Fraud attempts are also becoming faster and more expensive. Risky payment sessions doubled, while the median duration of a fraudulent session fell by 32%. At the same time, the median transfer value per fraud session increased 1.7 times, and the total value of attempted fraudulent payments rose by 35%.

The shorter duration of fraud calls and sessions suggests that criminals are using more refined social engineering techniques and automated methods to persuade victims and transfer funds before warning signs are detected.

SMS scams remain particularly effective because fraudulent messages often appear within communication channels that customers already trust. Messages may impersonate banks, government agencies, delivery companies or payment platforms and pressure recipients to click a link, reveal credentials or approve a transaction.

The report also highlighted the growing problem of mule accounts. Investigators detected more than 8.5 lakh mule accounts across over 700 branches of Indian banks during 2025. Cyber-fraud complaints involving ₹22,496 crore were recorded during the year, along with 26.48 lakh mule cases.

India’s rapid adoption of Unified Payments Interface transactions, mobile banking, e-commerce and online investment platforms has expanded convenience but also created a larger target for cybercriminals.

Banks, regulators and law-enforcement agencies are therefore strengthening collaboration and using behavioural intelligence to continuously assess customer activity. Such tools can identify unusual behaviour, detect suspicious payment intent and intervene before funds are transferred.