Digital Arrest is the most innovative form of cyber scam affectingmore than 92,000 Indians in the year 2024 wherein funds are withdrawn through online transfers in the guise of resolving tax or legal dues.
Digital Arrest:
In the digital arrest scam, cybercriminals dupe common people by creating fake identities of law enforcement officials or government agencies such as state police, CBI, ED and Narcotics Bureau.
Scamsters call people without any suspicion and claim that a case has been registered against them and use fake police stations to make their allegations credible.
Cybercriminals contact victims via phone or email. These start with audio calls and then video calls from places like airports, police stations or courts.
They use photographs of police officers, lawyers and judges as display pictures on their social media accounts to appear legitimate.
They can also send fake arrest warrants, legal notices or official-looking documents via email or messaging apps.
Burying the victims:
Cybercriminals typically accuse victims of serious crimes such as money laundering, drug trafficking, or cybercrime.
They can fabricate evidence to make their allegations credible.
The vulnerability of people:
Fear and Anxiety:
Victims of the threat or fear of arrest tend to take the word of such people without thinking.
The lack of information:
Ignorance of law enforcement procedures makes it difficult for victims to distinguish between legitimate claims and fraud.
Social stigma:
Victims become victims of fraud due to fear of social stigma and impact on the family.
The use of technology:
It uses AI voices, professional people and fake video calls to look believable.
Technical Sensitivity:
Individuals with little or no technical knowledge or stress easily fall prey to frauds.
The state of cybercrime in India:
According to the Indian Cyber Crime Coordination Centre (I4C), there has been a significant increase in both frequency and financial impact of cyber scams / cyber frauds in India.
This worrying trend indicates an ever-increasing threat to India’s digital ecosystem.
Complaints and Damages:
There has been a significant increase in the number of complaints in the last few years, with 1,35,242 complaints registered in the year 2021, 5,14,741 in the year 2022 and 11,31,221 in the year 2023.
The total monetary loss from cyber scams has reached Rs 27,914 crore between 2021 and September 2024.
Major Scams:
Stock Trading Scam:
It is the most significant source of losses with 2,28,094 complaints causing a loss of Rs 4,636 crore.
Scammers use it to promise illogical gains when trading equities, forex or cryptocurrencies, but victims eventually fall prey to the fraud.
Ponzi scheme scam:
1,00,360 complaints resulting in a loss of Rs 3,216 crore.
“Digital Arrest” Fraud:
A total of 63,481 complaints have resulted in a loss of Rs 1,616 crore.
New Money Fraud Strategies:
Cybercriminals have adopted their own strategies for money fraud.
Methods of withdrawal:
The stolen money is often withdrawn through various channels, including cheques, CBDCs, fintech cryptocurrencies, ATMs, merchant payments and e-wallets.
Mule Accounts:
I4C has identified and frozen about 4.5 lakh Mule accounts which were primarily used for laundering money from cybercrime.
Indian Cyber Crime Coordination Centre (I4C):
I4C (Cyber Crime Coordination Centre) was launched by the Ministry of Home Affairs in the year 2020 to deal with all types of cyber-crimes including cyber scams in a comprehensive and coordinated manner.
The objectives of I4C are:
To act as a nodal body to curb cybercrime in the country.
Strengthening the fight against cybercrime against women and children.
Facilitate easy filing of complaints related to cybercrime and identify trends and patterns of cybercrime.
To act as an early warning system for law enforcement agencies for prevention and detection of active cybercrime.
To create awareness among the public about prevention of cybercrime.
To assist the States/UTs in capacity building of police officers, public prosecutors and judicial officers in the field of cyber forensics, investigation, cyber hygiene, cyber criminology etc.
National Cyber Crime Reporting Portal:
Under I4C, the National Cyber Crime Reporting Portal is a citizen-centric initiative that will enable citizens to report cyber frauds online and all complaints will be accessed by the respective law enforcement agencies to take action as per law.
Challenges in dealing with cybercrime:
Privacy:
Cybercriminals use tools such as virtual private networks (VPNAs) and encrypted messaging apps to hide their identity and location, complicating efforts to detect and arrest them.
International Scope:
Cyber scams often span multiple countries, making it difficult for local law enforcement agencies to take action.
A large part of the scam comes from Southeast Asia and China.
Fast-evolving strategies:
Phishing scams are carried out via email in more sophisticated ways, including social engineering, text messages, and voice calls, making it harder to detect fraud.
Advanced malware:
Cyber scams use advanced malware that can bypass antivirus programs and firewalls to steal data or gain unauthorized access.
Regulatory fragmentation:
Different countries have different rules, which makes it difficult to formulate a coherent international strategy to combat cybercrime.
Moreover, countries lack comprehensive threat intelligence to identify emerging cyber scam trends and strategies without sharing data.
The growing digital market:
The growth of e-commerce and digital payment systems has led to an increase in scams such as fake online stores, card skimming and fraudulent payment schemes.
Types of cyber-attacks:
Phishing Scams:
Fraudsters send fake emails or messages, impersonating trusted organisations, to get victims to share sensitive information such as passwords or financial details.
Lottery and Prize Scam:
Victims receive information that they have won an important prize and are asked to pay a processing fee or tax to receive it.
Emotional manipulation scam:
Scammers on dating apps build relationships with victims and later ask for money for emergencies, often demanding payment in cryptocurrency.
Job Scam:
Scammers post fake job listingson recruitment platforms or social media to offer personal information or money to job seekers, especially fresh graduates.
Investment Scams:
These scams attract the victim’s desire to earn quick money by promising high, unrealistic returns through Ponzi or pyramid schemes.
Cash-on-Delivery (CoD) Scam:
Scammers create fake online stores that accept CoD orders when the product is delivered, it is either counterfeit or not as advertised.
Fake Charity Appeal Scams:
Scammers create fake websites or social media pages for inappropriate causes, such as disaster relief or health initiatives, and use emotional stories or images to create urgency and empathy.
Wrongful Money-Transfer Scams:
Scammers contact victims to claim that money has been sent to their account by mistake and use fake transaction receipts to pressure them to return the money to avoid legal trouble.
Credit Card Scams:
Scammers offer loans at low interest rates and approve them instantly. After the victim pays an upfront fee to secure the loan, the scammers disappear.
Solution:
Digital Security:
The Prime Minister of India outlined a simple three-step security protocol to protect against digital arrest.
Pause:
Stay calm and avoid giving out personal information in a hurry.
Think about it:
Keep in mind that legal agencies do not make such inquiries through calls or demand payment through calls.
Take action:
Reporting incidents, informing family members and recording evidence on National Cyber Crime Helpline (1930) or National Cyber Crime Reporting Portal.
The best practices in cybersecurity:
Using firewalls, which act as the first line of security for computers, to monitor and filter network traffic to prevent unauthorized access.
Keeping all software and hardware systems up to date to address security-related deficiencies.
The improved security:
Implementing two-factor authentication to add an extra level of security. Using encryption to protect sensitive data, including financial records.
Increased alertness:
Banks should monitor high-value transactions in low-balance or salaried accounts and alert the authorities, as stolen money is often transferred to these accounts and then sent abroad by converting it into cryptocurrency.
Awareness:
Do not give any personal information (such as Aadhaar or PAN card details) and money.
Always independently verifying the identity of the caller through official channels.
Learn about common fraud tactics and share this information with your family and friends to prevent such incidents.
The international cooperation:
Cooperation among nations to establish common laws, share intelligence and coordinate responses can help combat cross-border cybercrime.
Key Government Initiatives related to Cyber Scams in India:
National Cyber Security Policy
Computer Emergency Response Team-India (CERT-In)
Cyber Surakshit Bharat Initiative
Cyber Sanitation Centre
National Centre for Protection of Critical Information Infrastructure (NCIIPC)
Digital Personal Data Protection Act, 2023
Cyber Crime Coordination Centre
Citizen Financial Cyber Fraud Reporting and Management System
