In today’s world, India has seen a huge increase in Cyber crimes such as Trojan attacks, e-mail bombing, information theft, system hacking, data hacking etc. Despite various technologies are used by organizations, there is rise in cybercrimes in the recent years. Since computer usage and internet usage have been increasing rapidly in day to day life there is a large scope of cyber crime that can be done by fraudsters. In this concern there should be some precaution measures to be done when individuals and corporates offices are using internet as it is major threat in cybercrime. The purpose of the study is to represent the various types of cybercrime in banking sector and their effect on the banks. In this paper certain preventive measures have been suggested to reduce the cyber crime and basic cyber security points are discussed.

KEYWORDS:  Cyber Fraud, IT Act, Indian Banking Sector, Cyber Security, Cyber Law.