Indian Banks Face 146% Surge in SMS Scams as Mobile Fraud Accelerates

Text-message-based scams and mobile fraud have surged sharply across India. According to new data from fraud-prevention firm BioCatch, SMS scams rocketed by 146% and mobile fraud sessions climbed 67% between H2 2025 and H1 2026 compared to the previous period.

The dramatic uptick in mobile fraud includes an 86% spike on iOS devices and a 35% rise on Android. Meanwhile, web browser-based fraud sessions dropped by 10%, highlighting a clear migration of cybercriminals toward mobile attack channels.

Sharper Tactics and Faster Payouts

Fraud is moving at a much faster pace while growing significantly more costly for victims. Risky payment sessions doubled during the period, while the median transfer value per fraud session surged 1.7 times. At the same time, the median fraud session length fell by 32%, and average call length dropped by 31%, pointing to a sharp increase in scam efficiency.

“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 Tom Peacock, Director of Global Fraud Intelligence at BioCatch.

Peacock noted that the combination of higher-value fraud attempts alongside shorter calls and sessions shows that attackers are refining their approach, using well-rehearsed social engineering and automated techniques to move stolen funds before victims notice warning signs.

Overall, cyber-fraud complaints in India reached ₹22,496 crore in 2025, with 26.48 lakh mule cases reported. However, protective measures managed to block ₹9,055 crore through the national suspect registry. On the ground, investigators uncovered over 8.5 lakh mule accounts spread across 700 branches of various Indian banks in 2025.

Industry Response and Behavioral Defense

India’s rapid adoption of the Unified Payments Interface (UPI), mobile banking, e-commerce, and digital investment platforms has created a seamless payments landscape but also an attractive hunting ground for cybercriminals.

To counter these tactics, financial institutions and authorities are tightening their defenses.
“The encouraging news is that we’re seeing greater collaboration between banks, the Reserve Bank of India, the I4C, and law enforcement,” said Subhashish Bose, Global Advisory Director at BioCatch.

Bose emphasized that adopting behavioral intelligence allows banks to move past single-point authentication toward continuous user intent assessment, helping institutions flag scams earlier and intercept fraudulent transfers faster.