A large number of Indians are falling prey to financial fraud carried out over the Internet. A staggering Rs 7061 crores of public funds have been siphoned off by a nexus of cybercriminals operating primarily from Southeast Asian nations like Cambodia, Myanmar, and Laos in the first four months of this year alone.
The illicit proceeds from deceptive operations are laundered through sophisticated means, including cryptocurrency transactions and cash withdrawals spanning multiple countries.
In its analysis of trends seen from January to April, the Indian Cybercrime Coordination Centre (I4C) found that 46 per cent of such frauds were reported in this period.
National Cybercrime Reporting Portal (NCRP) data show 7.4 lakh complaints were made between January 1 and April 30 this year, while 15.56 lakh complaints were received in all of 2023. A total of Rs 9.66 lakh, Rs 4.52 lakh, Rs 2.57 lakh, and Rs 26,049 complaints were received in 2022, 2021, 2020, and 2019 respectively.
To combat the menace, Indian authorities have taken stringent measures, freezing 3.25 lakh mule accounts and blocking 3,000 URLs and 595 apps under Section 69A of the IT Act.
The gravity of the situation prompted the formation of a high-level inter-ministerial committee chaired by the Special Secretary (Internal Security), Ministry of Home Affairs. It has been constituted to coordinate with relevant ministries and departments for implementing comprehensive measures aimed at mitigating cybercrime originating from Southeast Asia targeting India and creating a resilient ecosystem to prevent such crimes from originating from other geographies.
Recognising the scale of these crimes, the Ministry of Home Affairs (MHA) has sounded the alarm on the escalating cybercrime menace targeting India in the region. The I4C has identified four broad categories of fraud originating from these three countries, following certain modus operandi.
The first is classified as a trading scam. The alleged fraudsters issued ads on social media offering free trading tips, often using pictures of well known stock market experts and fake news articles. The victims were asked to join a WhatsApp group or Telegram channel, where they would receive tips on making money by investing in shares.
After a few days, the victims would be asked to install some specific trading applications and register themselves in order to receive further guidance on making huge profits. The victims would start “investing” on the apps, following recommendations made by the cybercriminals. None of these apps would be registered with the stock market regulator, the Securities and Exchange Board of India (SEBI), but the victims typically neglected to check this. The victims deposited money in particular bank accounts to “buy shares”, and were shown some fake profits in their digital wallets.
Second, digital arrest, where potential victims would get a call in which the caller would tell them that the victims had sent or were the intended recipients of a parcel containing illegal goods, drugs, fake passports, or other contraband. In some cases, relatives or friends of the target would be told that the target had been found to be involved in a crime. The criminals They would pose as law enforcement officials, often wearing uniforms and calling from places resembling police stations or government offices, and demand money to negotiate and blackmail the victims.
Third type of cyber fraud is an investment scam (task based), where victims typically receive a WhatsApp message from an overseas number, purportedly belonging to a representative of a company, with an offer to earn a large sum of money, say, Rs 30,000, while working from home.
Those who responded were told they would have to help boost the social media ratings of some entities by giving them a five-star rating. After the task was completed, victims received a code, which they were asked to share with their “admin” on Telegram. At this point, the victim would be asked to participate in a pre-paid or merchant task, in which a higher return would be promised after a certain amount — which could be between Rs 1,500 and Rs 1 lakh — had been deposited. However, the following day, the victims would be told that their performance score was not good enough, and they needed to improve it by participating in new tasks so they could get their money.
Lastly, there is the dating scam, a somewhat more conventional trap, though laid out online. The victims, who were male, were lured by people they thought were foreign women. These women would propose relationships or marriage, and then make plans to come and meet in person. However, the victim would typically get a call from the “woman” that she had been detained at the airport, and needed money to get out. On its website, the US FBI, which has dealt with such cases, says romance scamsters are experts at appearing genuine, caring, and believable. These con artists lurk on most dating and social media sites, and seek to quickly gain the victim’s trust.
Indians who are lured to southeast Asia’s organised cybercrime factories with fake jobs advertised by illegal recruiters, detected in states like Andhra Pradesh, Tamil Nadu, Odisha and Delhi – are pushed into defrauding unsuspecting victims in India through social media advertisements and fake messages. The MHA stated that thousands of Indians, willingly or unwillingly working in these call centers, are involved in fraud.
After the recent revelation by Vishakhapatnam police of a human trafficking racket operating in Cambodia, the decision to form the committee has gained prominence. According to the AP police, over 300 Indians were lured to Singapore with the promise of employment opportunities. However, they were subsequently trafficked to Cambodia, where their passports were confiscated.
These individuals have been rescued and repatriated to India. In response, the Indian embassy in Cambodia has issued an advisory, urging those seeking job opportunities in Cambodia to only engage with authorised agents. Additionally, it advised job seekers to conduct thorough background checks on prospective employers.
In the age of rapid technological change, this entire series of events is extremely appalling and concerning. It is an eye-opening experience for India to further bolster its cybersecurity mechanisms to be able to protect itself; expose, and prevent such advanced plans of action devised by cyber frauds.
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