Cyber Frauds in India

"Welcome to our latest edition of the THE TRUTH OF INDIA newsletter!

Today, we are going to summarise about the increment of Cyber Fraud in India.So, sit back and enjoy the read !

Online fraud and payments have received a lot of attention lately. Being cashless is easier for consumers to manage on the one hand, but 70% of these users have fallen victim to online fraud. We'll examine cyberfinancial fraud in this blog and discuss reporting options.

Financial fraud, in simple terms, is a circumstance in which someone loses money dishonestly or maliciously. Since COVID-19, there has been a significant increase in online payments worldwide. Introducing a circular titled "Master Directions on Fraud- Classification and Reporting by Commercial Banks and select FIs," the RBI acknowledged cyber financial fraud on July 1, 2016, and acknowledged the need for increased reporting.

Financial fraud is classified by the RBI as misappropriation and criminal breach of trust, cheating and forgery, unapproved credit facilities extended for payment of rewards or illegal gratification, fraudulent encashment through forged documents, fraudulent transactions involving foreign exchange, manipulation of books of account or through fictitious accounts, property conversion, or any other type of fraud. Rule 2.2 of the Circular states that these acts must be interpreted in accordance with the Indian Penal Code, 1860, which classifies them as crimes. The government has developed a system to report financial cybercrime under the I4C scheme and given specific rules in this regard.

What is the I4C scheme?

The Government of India launched the I4C scheme, also known as the Indian Cyber Crime Coordination Centre, in 2019 to combat the escalating cyberfinancial fraud. The Ministry of Home Affairs provided oversight for the introduction of this programme. It is established in various organisations that identify and look into cybercrimes, including the National Cybercrime Reporting, the Platform for Joint Cybercrime Investigation Team, the National Cybercrime Threat Analytics Unit (TAU), the National Cybercrime Training Center (NCTC), the National Cybercrime Forensic Laboratory (NCFL), Ecosystem Cybercrime Ecosystem Management Unit, and the National Cybercrime Research and Innovation Centre.

When a cyber financial fraud happens, the victim can report the incident by calling at 1930 or lodge a formal complaint on the National Cybercrime Reporting Portal www.cybercrime.gov.in.

Procedure to lodge a complaint on National Cyber Crime Reporting Portal

·    Whenever a cyber financial fraud occurs, a victim can access the website www.cybercrime.gov.in and get registered as a new user

·    After the successful registration, the user needs to click “Report Cyber Crime”

·    Select your state

·    According to the RBI circular, go to the “Frauds: Classification and Reporting” then the complaint will be marked to the cyber cell, and the FIR will be lodged at the police station where the offence is alleged to be committed.

Since no legislation specifically provides cyber financial fraud as a separate offence, RBI issued guidelines for these cases, in which the provisions of IPC will be applied.  

Whenever financial fraud is committed either by way of online mode or otherwise, time is considered as the utmost essence, and the RBI guidelines entail the person to report the same asap. Obviously, the law favours the vigilant and does not rescue the one who doesn’t stand for his rights. If the victim swiftly reports the commission of fraud, then as per I4C Scheme, the chances of recovery of deceived amount get high.

Steps to avoid Cyber Financial Frauds

1.   Use Verified apps only

2.   Browse authorised and secured websites

3.   Use safe Internet Connections

4.   Strict vigilance while using the card

5.   Always update your mobile security and Computer

6.   Don’t respond to Fake Calls, SMS or Emails

Conclusion

The existing laws do not classify cybercrimes as separate offences. However, RBI’s guidelines state that such offences will be dealt with under IPC and IT Act, 2000. The recovery of the deceived amount is given high priority, and speedy recovery is the greatest relief a victim can avail of. The reason for introducing the I4C scheme, keeping in mind the motive of law that Justice delayed, is Justice denied. Apart from this, a trial can be instituted under the penal laws to ensure complete justice for the victim.

Thanks for reading !

This newsletter was written by  BIKRAM GORAI . If you liked this advice from this newsletter, subscribe to it.

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