Axis Bank reports 40 per cent decline in retail digital frauds in FY26 compared to FY25

The bank also reported a 4.5x increase in fraud prevention during the same period, driven by AI-led monitoring and enhanced risk-based controls.

The data was shared during a media briefing in Kolkata, where the private lender showcased its pan-India ‘Safe Banking’ strategy. The approach integrates AI-powered fraud intelligence, real-time customer controls, and a strong branch-led ecosystem to safeguard customers against evolving digital threats.

Speaking at the event, Sameer Shetty, Group Head – Digital Business, Transformation & Strategic Programs, Axis Bank, said the bank is combining AI-driven intelligence with customer-controlled tools to shift from detection to prevention, while embedding resilience across the customer journey.

“As digital interactions continue to scale, our focus is on strengthening trust by ensuring customers are not only protected but also empowered to act with confidence in real time,” he added.

Gaurav Gupta, Group Head – Financial Crime Intelligence, Axis Bank, noted that financial crime is becoming increasingly organised and network-driven, requiring a shift from isolated transaction monitoring to an intelligence-led approach.

“At Axis Bank, we are integrating behavioural insights, network analytics, and real-time risk signals to identify threats earlier and intervene more effectively. This enables us to disrupt fraud ecosystems at scale while strengthening trust and resilience across the digital banking landscape,” he said.

The bank’s intelligence-led prevention architecture enables early detection and action on suspicious transactions, real-time behavioural pattern analysis to flag deviations, and network-level intelligence to uncover organised fraud rings.

AI-Powered Fraud Prevention

Axis Bank has embedded artificial intelligence across its fraud prevention systems, enabling a shift from rule-based monitoring to predictive and adaptive risk management. AI-driven models support real-time risk scoring, behavioural anomaly detection, and fraud network identification, helping the bank detect and respond to potential threats at an early stage.

The bank also highlighted the growing complexity of fraud networks, where mule accounts are used as intermediaries to obscure money trails and facilitate rapid movement of illicit funds across multiple accounts.

To strengthen security, Axis Bank has deployed backend controls such as geolocation checks, velocity monitoring, and identity validation to enhance onboarding safety and reduce fraud risk.

Key capabilities include dynamic risk scoring of transactions for real-time authentication, step-up verification, or blocking of high-risk activity, along with network-level intelligence to detect organised fraud rings and mule account ecosystems at scale.

This framework is further strengthened through ecosystem-wide collaboration across banks, telecom operators, and regulatory bodies, enabling earlier identification and mitigation of fraud risks before they reach customers.

Customer-Controlled Security

Alongside AI-driven safeguards, Axis Bank has introduced several customer-facing security features aimed at improving visibility and control over digital banking risks.

• Mobile App Code: Enables secure app-based authentication for logins and transactions, reducing reliance on OTP-based systems.
• Face Authentication: Adds a biometric verification layer, ensuring only authorised users can access or approve sensitive banking actions.
• Safety Centre: A central hub for instant protective actions, including restricting transactions during suspicious activity and enabling proactive controls such as Quiet Hours.
• Lock FD: Prevents unauthorised digital closure of fixed deposits, particularly useful for customers using assisted banking channels.
• SMS Shield: Verifies the authenticity of SMS messages by validating sender IDs against official Axis Bank identifiers, helping detect spoofing and phishing attempts.

(Reporting by Supriyo Hazra)