Indians are likely to lose over ₹1.2 lakh crore over the next year to cyber-frauds, shows a projection made by the Indian Cyber Crime Coordination Centre (I4C), which runs under the Union Home Ministry.
Key Highlights of the I4C Projection
- Financial Impact: Indians are expected to lose over Rs 1.2 lakh crore in 2025 to cyber fraud, siphoning off 0.7% of India’s GDP. From January to June, 2024 Rs 11,269 crore was lost to financial fraud.
- Contributors to Cyber Fraud: Approximately 4,000 mule bank accounts are identified daily by I4C. I4C has identified 18 ATM hotspots across the country from where money was fraudulently withdrawn. A mule account refers to a bank account that is used to facilitate illegal activities such as money laundering and fraudulent transactions.
- Origin of Scam: The government has identified “scam compounds” in South East Asian countries such as Cambodia, Myanmar and Laos from cyber fraudsters. Most scams have origins in China or Chinese-linked entities.
- Modus Operandi: International Scam Compounds resemble call centres and have emerged as a hub of investment scams. Fraudsters make calls to unsuspecting people from Indian mobile phone numbers and dupe people of their money through various methods like lottery and prize scams, etc.
- Illegal Activities: Cyber scams can be used for terror-financing and money laundering. For instance, during March to May 2024, crypto currency worth Rs 5.5 crore was purchased using Indian accounts and laundered outside India. Cash withdrawals using mule account debit cards have been reported at overseas ATMs in Dubai, Hong Kong, Bangkok, and Russia.
Cyberfraud
- Cyber fraud is a kind of cyber crime that aims to steal money (or other valuable assets) from an entity.
- It involves using online solutions (internet based) to commit fraud.
Indian Cyber Crime Coordination Centre
- I4C was launched by the Ministry of Home Affairs in 2020 to deal with all types of cyber crimes including cyber fraud in a comprehensive and coordinated manner.
Objectives of I4C
- 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.
- Awareness creation among public about preventing Cybercrime.
- 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
National Cyber Crime Reporting Portal
- Under I4C, the National Cyber Crime Reporting Portal is a citizen-centric initiative which will enable citizens to report cyber fraud online and all the complaints will be accessed by the concerned law enforcement agencies for taking action as per law.
Types of Cyberfraud
| Cyber Threat | Description |
| Phishing | Phishing involves emails that appear to be from trusted sources, tricking users into clicking links that lead to fake websites and attackers gain sensitive details e.g., credit card numbers. |
| Malware | Malware is used to steal personal information that allows cyber criminals to gain control of a victim’s computer. |
| Ransomware | Ransomware encrypts a victim’s files and demands payment for decryption. E.g., WannaCry attack in 2016 |
| Cyberbullying | Cyberbullying includes any threat to a person’s safety, coercion to say or do anything. |
| Cyber Spying | Cyber Spying target a public or private entity’s network to gain access to classified data, private information, or intellectual property. |
| Business Email Compromise (BEC) | Scammers hack legitimate email accounts to impersonate suppliers, employees, or tax office members, considered a white-collar crime. |
| Dating Hoodwinks | Hackers use dating websites, chat rooms, and online dating apps to pose as potential partners and gain access to personal data. |