Alarming Financial Losses of Indian Citizens
In the first four months of 2024, Indian citizens have lost a staggering ₹1,750 crore to cyber frauds. With over 7.4 lakh complaints registered on the National Cybercrime Reporting Portal, the magnitude of these financial crimes is becoming increasingly concerning. This concludes a loss of ₹14.58 Crore every day since the beginning of 2024.
Surge in Cybercrime Complaints
Between January and April 2024, Indian citizens filed an average of 7,000 cybercrime complaints daily. This marks a significant 113.7% increase from 2021-2023 and a 60.9% rise from 2022-2023, according to the Indian Cyber Crime Coordination Centre (I4C). The I4C, established by the Ministry of Home Affairs, provides a framework for law enforcement agencies to tackle cybercrime effectively.
Predominance of Financial Scams
Financial scams are the most prevalent form of cybercrime, accounting for over 85% of the cases. Common scams include:
1. Online Investment Frauds: In the Indian market, online investment frauds have surged, targeting individuals with promises of high returns. Scammers create fake investment platforms, often mimicking legitimate financial institutions, to lure victims. These frauds exploit the increasing trend of online trading and investment, deceiving people into investing large sums of money. Once the investments are made, scammers vanish, leaving investors with significant financial losses. Vigilance and verification of investment sources are crucial to avoid falling prey to such schemes. Here is an example of one such incident that happened with a famous personality of Bollywood.
2. Gaming App Scams: Gaming app scams in India have become increasingly common as the popularity of mobile gaming soars. Fraudsters create counterfeit gaming apps or manipulate legitimate ones to steal personal and financial information from users. They often lure gamers with promises of free in-game currency, rewards, or premium features. Once users download these apps and provide sensitive information, scammers exploit this data for fraudulent activities. It is essential for gamers to download apps only from trusted sources and avoid sharing personal details. Here is how a Nagpur man lost 58 crore in online gaming fraud.
3. Illegal Lending Apps: Illegal lending apps have become a significant issue in India, preying on individuals in urgent need of cash. These apps offer quick loans with exorbitant interest rates and hidden charges. Once the loan is disbursed, the borrowers find themselves trapped in a cycle of debt due to the unreasonable repayment terms. Additionally, these apps often misuse personal data for harassment and coercion. Users must verify the legitimacy of lending platforms and read the terms carefully before borrowing. Here is how these apps took 60 lives.
4. Sextortion: Sextortion scams are on the rise in India, targeting individuals through social media and dating apps. Scammers build trust with victims and convince them to share intimate photos or videos. These are then used to blackmail victims for money or further compromising material. The emotional and financial toll of sextortion can be devastating. To protect themselves, individuals should be cautious about sharing private content online and report any blackmail attempts to authorities. Read this to know more
5. OTP Forwards: One-Time Password (OTP) forwards are a common tactic used by scammers in India to gain unauthorized access to bank accounts and other sensitive services. Scammers trick victims into sharing OTPs by posing as bank representatives or customer service agents. Once they have the OTP, they can complete fraudulent transactions. To avoid falling victim to OTP fraud, individuals should never share their OTP with anyone and always verify the identity of callers claiming to be from financial institutions. Read the CID report here.
How can Indian Citizens protect themselves from online fraud:
1. Verify Before Trusting: Always verify the authenticity of any request for personal or financial information. Use official contact details found on trusted websites instead of responding directly to unsolicited messages. If you find any message or call suspicious terminate communication immediately and do not click on any links.
2. Be Wary of Unsolicited Offers: Avoid engaging with unexpected offers for investments, loans, or prizes. Scammers often use these tactics to lure victims into providing sensitive information or money. Invest only in trusted instruments, greed of getting higher returns can damage your principal amount and years of savings.
3. Use Strong Passwords: Create strong, unique passwords for all your accounts. Utilize two-factor authentication (2FA) wherever possible to add an extra layer of security. Doing it will make it difficult for fraudsters to steal your information and increase security on your accounts.
4. Educate Yourself: Stay informed about common scam tactics and trends. Regularly review information from trusted sources on how to recognize and avoid scams. Join our Newsletter for free guidance. Our blogs can help you.
5. Report Suspicious Activity
If you encounter a scam or suspicious activity, report it to the appropriate authorities. Here are some options where Indian Citizens can report suspicious activities:
- National Cybercrime Reporting Portal: This portal, operated by the Ministry of Home Affairs, allows individuals to report cybercrimes online. Visit cybercrime.gov.in to file a complaint.
- Cyber Crime Police Stations: Many cities in India have dedicated cybercrime police stations where victims can report cybercrimes in person.
- Local Police Stations: Individuals can also report cybercrime incidents at their local police stations, where they can receive assistance or be directed to the appropriate cybercrime unit.
- National Helpline Number: The Indian government has set up a national helpline number, 155260, for reporting cyber fraud.
