Banking sector frauds have been in existence for centuries, with the earliest known frauds pertaining to insider trading, stock manipulation, accounting irregularity/ inflated assists etc. Over the years, frauds in the sector have become more sophisticated and have extended to technology based services offered to customers. The Indian banking sector too is experiencing the pain due to increase in fraud incidents with 93 percent of our survey respondents indicating that fraud has grown over the last two years. A majority of survey indicated that more than 50 fraud incidents in the retail banking segment in the last two years (average fraud loss of around INR 10 lakh per incident) and an average of 10 fraud incidents in the non-retail segment (average loss amount close to INR 2 crore per incident). India Banking Fraud Survey report where only 40 percent of respondents claimed such fraud losses. While most of the banks have indicated an overall increase in frauds incidents across all banking segments, it comes as no surprise that retail banking has been identified as the major contributor to fraud, followed by corporate banking. As retail banking is more process as well as volume-driven, increased fraud incidents in this area should trigger a wider review of the process and controls to identify the root cause as these incidents could be just the tip of the iceberg. In this paper an attempt is made to understand the meaning of fraud, fraud triggers, how to identify and control fraud in retail banking products.