Interministerial Panel Identifies Loopholes Enabling Cyber Scams

Context:

The Centre’s high-level interministerial panel has identified loopholes in banking, immigration, and telecom sectors that enable cyber scams originating from Southeast Asian countries.

Relevance:

GS III: Security Challenges

Dimensions of the Article:

1. Overview of Cybercrimes Originating from Southeast Asia
2. Types of Cybercrimes
3. Panel Report Findings
4. Proposed Steps to Address the Issue

Overview of Cybercrimes Originating from Southeast Asia

Key Facts:

• Over 5,000 Indians are suspected to be trapped in Cambodia and forced into cyber fraud operations.
• Indians have lost at least Rs 500 crore in the last six months due to cybercrimes.
• About 45% of cybercrime incidents targeting India are traced back to Southeast Asia, notably Cambodia, Myanmar, and Laos PDR.
• Since January 2023, around 1 lakh cyber complaints have been registered with the National Cybercrime Reporting Portal (NCRP).

Types of Cybercrimes

• Trading Scams:
  • Modus Operandi:
    • Scammers use social media ads and fake news articles to offer free trading tips.
    • Victims are asked to install trading apps and deposit money to buy shares.
    • They are shown fake profits in their digital wallets, but funds cannot be withdrawn.
  • Impact:
    • Rs 222 crore lost by Indians between January and April 2024.
    • 20,043 cases reported.
• Digital Arrest:
  • Modus Operandi:
    • Victims receive calls about illegal activities involving contraband or forged documents.
    • Scammers pose as law enforcement on video calls, demanding money to settle the case.
    • Victims are coerced into staying visible to criminals until demands are met.
  • Impact:
    • Rs 120 crore lost by Indians between January and April 2024.
    • 4,600 cases reported.
• Investment/Task-Based Scams:
  • Modus Operandi:
    • Scammers use WhatsApp to promise returns for boosting social media ratings.
    • Victims are asked for bank details, receive a small sum initially, and are then enticed into larger investments.
    • Profits never materialize.
  • Impact:
    • Rs 1,420 crore lost by Indians between January and April 2024.
    • 62,587 cases reported.
• Dating Scams:
  • Modus Operandi:
    • Victims are lured by individuals pretending to be foreign women.
    • After proposing relationships or marriage, the scammers claim to be detained at the airport and request money for release.
  • Impact:
    • Rs 13 crore lost by Indians between January and April 2024.
    • 1,725 cases reported.

Panel Report Findings

Shortcomings Identified:

• Bank Involvement:
  • Senior bank managers from State Bank of India and Punjab National Bank were allegedly involved in opening mule accounts used for laundering cybercrime funds.
• Unreturned Passengers:
  • About 30,000 out of 73,000 Indians who traveled on visitor visas to Southeast Asian countries between January 2022 and May 2024 did not return.
• Bulk SIM Cards Misuse:
  • Misuse of bulk SIM cards in carrying out cybercrimes.

Proposed Steps to Address the Issue

• Freezing Mule Accounts:
  • Around 4 lakh mule accounts have been frozen in the first six months of intervention.
• Tracing Missing Individuals:
  • The immigration bureau plans to coordinate with relevant states to trace the families of the 30,000 missing individuals for further information.
• State-Level Coordination:
  • States including Kerala, Tamil Nadu, Punjab, Andhra Pradesh, Delhi, Odisha, Madhya Pradesh, Mumbai, Telangana, and Uttar Pradesh will be tasked with locating missing persons and gathering intelligence on their current whereabouts.

-Source: Indian Express