Cybercrime Surge in India

May 25, 2024

General Studies Paper-3

Context: Recently, the CEO of the Indian Cyber Crime Coordination Centre (I4C) highlighted that India has witnessed a sharp increase in cybercrime incidents.

About the Cyber Crime

It is the use of digital technologies such as computers and the internet to commit criminal activities.
It includes financial fraud (credit card fraud, online transaction fraud), crime against women and children with regard to sexually explicit material, and deep fake content etc.
Reasons for increase in Cybercrime: Rapid Digitalisation, Large Internet User Base, Inadequate Cybersecurity Infrastructure, Insider Threats, Payment Systems Vulnerability, and Vulnerable population because of Low digital literacy etc.

Rise in Cybercrime in India

Daily Complaints: India is facing a rise in cybercrime, averaging more than 7,000 complaints daily up to May this year.
Cyber Fraudsters’ Locations: Many cyber fraudsters targeting India are believed to be operating from key locations in Southeast Asia, including Pursat, Koh Kong, Sihanoukville, Kandal, Bavet, and Poipet in Cambodia; Thailand; and Myawaddy and Shwe Kokko in Myanmar.
Upward Trend in Cybercrime: Complaints surged by 113.7% from 2021 to 2022 and 60.9% from 2022 to 2023. The number of complaints has steadily increased over the years.

Cyber Fraud Incidents in 2024

Types of Scams: Most cyber fraud incidents involve fake trading apps, loan apps, gaming apps, dating apps, and algorithm manipulation.
Reported Scams: Between January and April, the I4C received 4,599 complaints about digital fraud amounting to Rs 1,203.06 crore.
- Additionally, trading scams, investment scams, and dating scams were reported.

Modus Operandi of Fraudsters

Contact Method: Victims are contacted via normal call from India number using call spoofing.
Impersonation: The fraudsters also make calls posing as officers of various law enforcement agencies.

Challenges and Necessities

Alarming Trend: This surge in cybercrime cases suggests an alarming trend and underscores the increasing challenges related to cybersecurity in the country.
Need for Enhanced Cyber Defence: This also highlights the necessity for enhanced cyber defence mechanisms, public awareness, and robust legal frameworks to tackle the burgeoning issue of cybercrime.
Challenges and impacts of cyber-crime are multifaceted that include Financial Losses, Data Breaches, Identity Theft, Disruption of Services, Loss of Intellectual Property, Reputational Damage, and National Security Concerns etc.

Actions Taken by Law Enforcement

Freezing of Mule Bank Accounts: The I4C and various law enforcement agencies have frozen nearly 325,000 mule bank accounts in the past four months.
Blocking of SIM Cards and Social Media Accounts: Additionally, 530,000 SIM cards and 3,401 social media accounts, including WhatsApp groups, have been blocked.

Related Key Provisions

Constitution of India: According to the Seventh Schedule of the Indian Constitution, cybercrimes are within the purview of State Subjects.
Information Technology Act, 2000: Section 43, 66, 70, and 74 of the IT Act, 2000 deal with hacking and cyber-crimes.
Indian Computer Emergency Response Team (CERT-In) issues alerts and advisories regarding latest cyber threats/vulnerabilities and countermeasures to protect computers and networks on a regular basis.
National Cyber Coordination Centre (NCCC) has been set up to generate necessary situational awareness of existing and potential cyber security threats and enable timely information sharing for proactive, preventive and protective actions by individual entities.

Indian Cyber Crime Coordination Centre (I4C)

It is an initiative of the Union Ministry of Home Affairs (MHA) to deal with cyber crime in the country in a coordinated and comprehensive manner.
It focuses on tackling all the issues related to Cybercrime for the citizens, which includes improving coordination between various Law Enforcement Agencies and the stakeholders.

Objectives

To act as a nodal point to curb Cybercrime in the country.
To strengthen the fight against Cybercrime committed against women and children.
Facilitate easy filing Cybercrime related complaints and identifying Cybercrime trends and patterns.
To act as an early warning system for Law Enforcement Agencies for proactive Cybercrime prevention and detection.
Assist States/UTs in capacity building of Police Officers, Public Prosecutors and Judicial Officers in the area of cyber forensic, investigation, cyber hygiene, cyber-criminology, etc.

Strengthening the Cyber Security

Data localisation: Most cyber crimes are trans-national in nature with extra-territorial jurisdiction. Therefore, ‘data localisation’ is required, so that enforcement agencies are able to get timely access to the data of suspected Indian citizens.
Upgrade cyber labs: The cyber forensic laboratories of States must be upgraded with the advent of new technologies.
Cyber insurance: Designing cyber insurance policies tailored to the unique requirements of diverse businesses and industries is essential.
Stringent Data Protection Law: Data necessitates a robust data protection framework in India. India’s Personal Data Protection Bill, 2019 is a good step in the right direction.

Related International Measures

Budapest Convention: It is the 1st international treaty to address cybercrime.
- India is not a signatory to the treaty.
Internet Corporation for Assigned Names and Numbers (ICANN): It is a US-based not-for-profit organisation for coordinating & maintenance of several databases.
Internet Governance Forum: It is the United Nations forum for multi-stakeholder policy dialogue on Internet governance issues.

Conclusion

As the digital landscape continues to evolve, so does the nature of cyber threats. It is crucial for individuals, businesses, and the government to stay vigilant and proactive in the face of these challenges.
With collective efforts and robust cybersecurity measures, we can hope to mitigate the risks and safeguard our digital space.