Cyber Scams on the Rise in India

Unmasking the Surge: Cyber Scams on the Rise in India 

Cybercrime refers to criminal activities that are carried out using computers, computer networks, or the internet as tools or target.  Thеsе illegal activities can take various forms and can encompass a wide range of actions,  from financial fraud and data theft to online harassment and cybеr espionage.

Alarming reports suggest a surge in cyberattacks in India during the first three months of 2023, with over 500 million attacks thwarted out of a billion global attempts, as per the 'State of Application Security Report'.

Almost half the complaints, 1.56 million, were registered in 2023. Since 2019, more than 66,000 FIRs have been filed across states and Union territories based on these complaints.

Cyber scams have witnessed a significant rise in India, with multiple factors contributing to this concerning trend. Let's delve into a detailed analysis of the reasons behind the increasing prevalence of cyber scams in the country:

1. Rapid Digitalization: 

India is experiencing a massive digital transformation, with a growing number of people embracing online platforms for various activities like banking, shopping, and communication. This increased digitalization has provided cybercriminals with a larger pool of potential targets and opportunities to exploit vulnerabilities in the digital ecosystem.

2. Rising Internet Penetration: 

The widespread availability of affordable smartphones and internet connectivity has led to a surge in the number of internet users in India. As the internet user base expands, so does the potential victim pool for cyber scammers.

3. Lack of Cyber Awareness: 

A significant portion of the Indian population, particularly in rural areas and older age groups, may not have adequate knowledge of cybersecurity best practices. This lack of awareness makes them more susceptible to falling prey to various cyber scams, such as phishing emails, fake websites, and lottery frauds.

4. Sophistication of Cybercriminals: 

Cybercriminals have become increasingly sophisticated in their techniques and tools, making it challenging for individuals and organizations to detect and protect against their attacks. Advanced phishing emails, malware, and social engineering tactics are some of the methods employed by cyber scammers to exploit their victims.

5. Inadequate Cybersecurity Infrastructure: 

Despite the increasing cyber threats, many organizations and individuals in India still lack robust cybersecurity infrastructure and practices. This inadequacy leaves them vulnerable to cyber attacks, data breaches, and financial losses.

6. Lack of Stringent Regulations: 

The absence of stringent cybersecurity regulations and penalties for cybercrime in India can be perceived as an opportunity by cyber scammers. The absence of severe consequences for perpetrators may embolden them to continue their illicit activities.

7. Increasing Online Transactions: 

The rise of e-commerce and digital payment platforms has led to a surge in online transactions. This digital financial ecosystem attracts cyber scammers who seek to exploit security loopholes and trick users into divulging sensitive financial information.

8, Insider Threats: 

Insider threats, where current or former employees with access to sensitive data engage in fraudulent activities, can pose significant risks to businesses and individuals alike.

9. Global Nature of Cybercrime: 

Many cyber scams originate from outside India, taking advantage of the borderless nature of the internet. These international cyber threats may pose jurisdictional challenges for law enforcement agencies and hinder effective prosecution.

Root Cause to this: -

The rapid digitalization, rising internet penetration, lack of cyber awareness, and the increasing sophistication of cybercriminals are some of the key reasons behind the rise of cyber scams in India.

To combat this growing menace, there is an urgent need for enhanced cybersecurity awareness, investment in robust security measures, and the formulation of stringent cybersecurity regulations.

Additionally, continuous education and training in cybersecurity best practices for individuals and organizations can play a vital role in thwarting cyber scammers and creating a safer digital environment for all. Do not install non-NDAA approved IP Camera, NVR etc. Do not use China Based origin brand IP camera NVR etc.

Here are other takeaways for 2023:

• Imposter scams. Imposter scams remained the top fraud category, with reported losses of $2.7 billion. ...
• Investment scams. While investment-related scams were the fourth most-reported fraud category, losses in this category grew. ...
• Social media scams. ...
• Payment methods. ...
• Losses by age.

Cybercrime Laws In India

1.   Information Tеchnology Act, 2000 (IT Act): Thе Information Tеchnology Act,  2000,  is thе primary legislation that dеals with cybеrcrimеs in India.  It was amеndеd in 2008 to kееp up with еvolving tеchnology and cybеr thrеats.  Kеy provisions of thе IT Act includе:

2.   Sеction 43: This sеction dеals with unauthorizеd accеss to computеr systеms and data. It providеs for pеnaltiеs for unauthorizеd accеss,  downloading,  or introduction of computеr virusеs.

3.   Sеction 65: This sеction dеals with tampеring with computеr sourcе documеnts, and it imposеs pеnaltiеs for altеring,  damaging,  or dеlеting data with thе intеnt to causе damagе or harm.

4.   Sеction 66: This sеction addrеssеs computеr-rеlatеd offеnsеs, such as hacking,  and prеscribеs pеnaltiеs for unauthorizеd accеss to computеr systеms,  nеtworks,  or data.

5.   Sеction 66A (Rеpеalеd): Sеction 66A was controvеrsial and was struck down by thе Suprеmе Court of India in 2015 bеcausе it was dееmеd to bе infringing on frее spееch rights.

6.   Sеction 66B: This sеction dеals with dishonеstly rеcеiving stolеn computеr rеsourcеs or communication dеvicеs.

7.   Sеction 66C: It pеrtains to idеntity thеft and thе usе of somеonе еlsе’s idеntity for fraudulеnt purposеs.

8.   Sеction 66D: This sеction dеals with chеating by pеrsonation using a computеr rеsourcе.

9.   Sеction 67: This sеction addrеssеs thе publication or transmission of obscеnе matеrial in еlеctronic form and imposеs pеnaltiеs.

10.Sеction 69: This sеction providеs thе govеrnmеnt with thе powеr to intеrcеpt and monitor еlеctronic communications for rеasons rеlatеd to national sеcurity.

11.Sеction 70: This sеction dеals with thе protеction of critical information infrastructurе and providеs for thе appointmеnt of a National Critical Information Infrastructurе Protеction Cеntrе (NCIIPC).

12.Sеction 72: It dеals with thе brеach of confidentiality and privacy and imposеs pеnaltiеs for disclosing pеrsonal information without consеnt.

13.Information Tеchnology (Amеndmеnt) Act, 2008: This amеndmеnt act еxpandеd thе scopе of thе IT Act and introducеd provisions rеlatеd to data protеction,  data brеachеs,  and increased pеnaltiеs for cybеrcrimеs.

Tracking WhatsApp messages or any other form of electronic communication without proper legal authorization is typically illegal and a violation of privacy.  However, undеr certain circumstances and with appropriate legal processes,  law enforcement agencies and cybеr cеlls may bе able to access WhatsApp messages as part of a criminal investigation. WhatsApp usеs еnd-to-end encryption, which means that messages arе scramblеd and can only bе decrypted by thе intended recipient.  WhatsApp itself does not have accеss to thе content of messages. To access WhatsApp messages for investigative purposes’, law enforcement agencies typically nееd to obtain proper lеgal authorization,  such as a court-issued warrant or a lawful court order.

Government of India has banned 17 Chinese companies from participating in tenders in India and warned private companies that do business with government entities against using these Chinese products. This is being seen as a significant crackdown on Chinese products that were entering the country after changing their brand names and tying up with Indian entities, ostensibly to hide their place of origin, and thus impacting the strategic and security interests of India while benefiting the Chinese economy.

The companies that have been banned include Xp-pen, Highvision Hikvision, Lenovo, Dahua, Lava, Ottomate, Xolo, Airpro, Grandstream, Wi-Tek, Realtime, Maxhub, Nokia, Domino, Reputer and Tyco.

The Sunday Guardian, last year, had revealed about Chinese products being used in government public sector undertakings that are working in the strategic sectors (Indian PSUs continue reliance on Chinese equipment in strategic sectors, 26 February 2023).

As per the government order released on the last day of January, the Indian sellers of these Chinese brands and the catalogs uploaded by them have been removed from Government e Marketplace (GeM) and they are not eligible for participating in any bid on GeM. The order has also said GeM will cancel those orders where the products of these Chinese companies are found to be used for the bid.

Seventy products, the maximum on the list, that have been banned belong to Hangzhou Hikvision Digital Technology Co., Ltd., often shortened to Hikvision. Its Indian face is Prama Hikvision (India) Pvt. Ltd. It is one of the biggest suppliers to Indian government agencies.

Similarly, DNS overseas, which handles products brought from the Beijing-based Hanvon Ugee Group and is a big player in the tablet market in India, has been removed from the GeM portal.

Twenty two products made by Lenovo, including servers, have been banned. Not many are aware that Lenovo is of Chinese origin.

Lenovo, founded in 1984, is seen as a product of the Chinese Academy of Sciences (CAS)—the Chinese-government’s premier institution of scientific research. CAS is reported to have extensive ties to the Chinese military.

Five products of Zhejiang Dahua Technology Company Limited, a publicly traded company based in Binjiang District, Hangzhou, which manufactures video surveillance equipment and sells its products in India under the brand name “Dahua” also features on the banned list.

Nineteen products of Lava International, whose brand ambassador is actor Kartik Aaryan, and has used cricketer Mahendra Singh Dhoni in the past, too have been banned. Also put on the banned list are products made under the brand name “Ottomate”, which is also a part of the Lava group. The products that have been banned include smart phones, fans and tablets. While Lava is seen as an Indian company, its products are made in China and then sold in India under a new brand name.

Thirteen products of Airpro have been put on the banned list including routers and cameras.

Five products of Grandstream and W-Tek that are sold in India by Cohesive Technologies have been removed from the portal.

Thirty one products made by “Realtime” and sold by Realtime Biometrics India Private Limited companies that include boom barriers, biometric access system, CCTVs have been banned.

The government has also come down heavily on the Chinese entity, Maxhub that sells its products through Shiyuan India Private Limited. A total of 18 of its products have been banned.

Six products sold by Hmd Mobile India Private Limited that are made by Nokia have been banned. According to industry insiders, the banned products are being manufactured in China. The brand had launched a media blitzkrieg a few years ago to convince Indian nationals that it was not making its products in China.

Seven products made by Tyco and marketed in India by Tyco Safety Products (India) Private Limited, two of Domino sold in India by Domino Printech India Llp and one of Reputer sold domestically by Innovitiq have been banned.

However, what has piqued industry insiders and security watchers is that many entities with notable Chinese investments and control that are active in India have not been added to this list.

These include products made by Huawei, Alcatel Lucent—a French company now owned by Chinese promoters, TvT, Tiandy Technologies and Uniview. All these companies have a significant presence in India and have been dealing with government agencies for a long time now.

On 6 August 2020, a Registration Committee under Department of Expenditure Order was constituted under the chairpersonship of Manmeet Kaur Nanda, a 2000 cadre IAS officer, who was then Joint Secretary, Department for Promotion of Industry and Internal Trade, to consider applications received for registration of bidders from countries that share land border with India for participation in public procurement.

It is this committee that keeps an eye on the products from the identified countries and evaluates the risk, if any, that is poised by them. In November 2023, Nanda moved as Joint Secretary to the Cabinet Secretariat. Sources in Government of India said that this is not an exhaustive list and more companies will be added on the list as per inputs that the concerned officials will receive.