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.
