Menace of Digital Scams

 

      Digitalization is hailed as a path breaking innovation for its speed and convenience. However, this disruptive technology has brought certain risks in the form of cyber-crimes. Every day, news about someone, like a doctor, professor, engineer, CEO, and well-known personalities, falling prey to the fraudsters are being reported. The scamsters have not even spared a Cyber Cell IPS Officer. In Mumbai, an IPS Officer attached to the cyber cell, a journalist and a cyber security expert also received calls from the cyber criminals. In the present digitally interconnected world, cybercrimes have further threatened the cyber security with the evolving Machine Learning (ML) and Artificial Intelligence (AI).

    As per Public Response against Helplessness & Action for Redressal (PRAHAR) in 2023, India experienced over 70 million cyberattacks, ranking it third globally in terms of the number of such incidents. This marked a 15% increase from the previous year. The escalation continued into 2024. In the first quarter, reports indicated a sharp rise in cyberattacks, with over 500 million incidents reported in just three months.

     The National Cybercrime Reporting Portal highlighted that the citizens lost approximately Rs. 2140 crore (about 5 million USD) to the digital arrest scams within the first 10 months (January – October 2024) of 2024.

     There could be more cyber fraud victims than the official figures. It is possible that many more crimes are unreported. The sense of shame in getting fooled could have prevented several educated ones from not reporting.

    The scamsters psychologically manipulate and convince the victims that they are involved in some serious criminal activities. The fraudsters in many cases would manage to collect some of the personal information of the victims – such as Aadhar (or probably the last 4 digits), PAN, bank details etc. With such actual information, the victim would be convinced to believe that the victim’s Aadhar, PAN, bank account had been used for illegal activities or the mobile phone.  The fraudsters will impersonate law enforcement officials like- Traffic Police, CBI, State Police, CID, ED, Customs, DRI, Supreme Court and more- to deceive their victims. The scamsters then threaten the victims with a digital arrest warrant, citing various offences. The fraudsters even create a police station, Enforcement Directorate office etc. to further convince the victims that they are legitimate. The victims are coerced into transferring money into specific bank accounts under the guise of “refundable security” or “assisting in the investigation”. Once the victims do as instructed, the scamsters will vanish with the money leaving no trace.

    The scamsters are exploiting the ignorance, fear and anxieties of the gullible people about the possible unpleasant encounter with the law enforcing agencies. The mental trauma makes the victims to lose their ability to think rationally and act appropriately. When people get scared, the rational part of their brain stop working and the emotional part take over.

   Apprehending “digital arrest” scamsters is a challenging process as they often operate from remote locations, using fake Skype accounts for video calls, using rented bank accounts to receive money from their victims. They also use technologies like Virtual Private Networks (VPN), fake identities and exploit cross-border jurisdictional constraints. The scamsters quickly convert the scam proceeds into cryptocurrency, which further complicates the traceability. By the time the victim reports the crime to the police, the scamsters block the account and convert the cryptocurrency into real money.

    So far, the government seems to have underplayed the enormity of the menace. The response is limited to issuing advisories and establishing cyber-crime units and cyber helpline. The cybercrime units are getting more and more complaints and are overwhelmed with the daunting task. The scamsters are getting smarter and are one step ahead of cyber cell experts.

       The scamsters use ‘Mule Accounts” – which are third party bank accounts to transfer the illicit funds on behalf of the criminals. As a part of multi-pronged efforts to crack down online frauds, government and Reserve Bank of India are exploring the feasibility of offering a “cooling off facility” to block funds received in a bank account. The proposed “cooling off period” is meant to check the immediate transfer of funds by the fraudsters. A facility like this is available in some countries and the government agencies are examining how effective a freeze on transfer of funds can be, and at the same time there is no hardship to customers.

    For awareness, it is necessary to know that the mule accounts can be of two types. In the first type, the account holders willingly participate, making them complicit in the fraud. In the second type, they are unwitting victims, unaware that their accounts are being exploited illegally.

    The MHA, through its Indian Cyber Crime Coordination Center (14C), has advised the citizens against selling or renting their bank accounts. It has also asked the banks to strengthen KYC norms to prevent the establishment of accounts without proper verification of identities.

   Digitalization and adoption of digital services has spread wide and far creating more opportunities and benefits. But the society at large is also paying a heavy price through exposure to greater risks and vulnerabilities. The scamsters are continuously innovating and improving cyber frauds by leveraging advanced technologies like Artificial Intelligence, deepfake, hacking official websites and other sophisticated techniques.

     Ultimately, it is the responsibility of the individual to safeguard one’s interest. Awareness about possible cyber scams and knowledge about foolproof cyber security practices are essential. In the unfortunate event of one becoming a victim, it is necessary to report the crime without much loss of time. Report the crime online at www.cybercrime.gov.in . The victims can also contact national cybercrime helpline 1930. It is important to report the cybercrimes within the golden hour- within 1 to 3 hours - to National Crime Reporting Portal (NCRP), either by making a call to 1930 or reporting on the website. This will help the law enforcement agencies and the financial institutions registered with NCRP to trace and block the proceeds of the crime.

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