Rising number of frauds and bank employees getting involved in them, the banking industry is making an inclination towards implementing IT based forensic and IT system in their organizations.

Private sector banks seem to be head stead and confident in adopting IT measures while the counterparts in the public sector are still in analysis stage.

"More and more banks are making attempts to use IT-enabled solutions for proactive data analysis. But use of IT in fraud detection is still in the nascent stage," KPMG director (forensic) KV Karthik said.

Debashish Sarkar, chief vigilance officer of Allahabad Bank said, "Banks are slowly gearing up to use information technology in detection of frauds. But there is long way to go."

Bankers express their views saying that although IT advancement is on the move, but it is majorly through internal audit, inspections and surprise visits that the frauds are mainly put on check.

"Fraud investigation requires competence in forensic audit and also technical and transactional expertise," the RBI said.

"Merely using IT solutions will not help. One needs to customise it and there should be company-specific anti-fraud programme," said Mr Karthik.

"Banks often overlook aberrations in small-value transactions," said an executive at a fraud management cell of a public sector bank. "There is a rising trend of frauds involving small amounts so that these do not get highlighted easily."