An unprecedented rise in cybercrime has gripped Mumbai, with citizens losing Rs 1,181 crore in just 11 months this year – an alarming 350 per cent rise in such incidents over 2023. Even more alarming is the trend of fraudsters. The first six months saw a sharp rise in cases of investment fraud, employment fraud and digital arrests. 2024.
According to RTI data (up to June 2024), the amount of investment fraud or share trading fraud in the city has increased almost 25 times from 7.76 crore in 2023 to 191 crore by June this year, while the amount of work fraud has reached Rs 36.89 crore. 40.77 crore by June, 2023.
On December 10, Minister of State for Home Bandi Sanjay Kumar informed the Lok Sabha that the Citizen Financial Cyber Fraud Reporting and Management System 2021 had received 9.9 lakh complaints nationwide along with 1930 helplines for citizens to report cyber crimes online. Since its inception. According to Mumbai Police data, 77,331 of these complaints – about eight percent of the national total – were from Mumbai, a city that represents one percent of India’s population.
The 1930 helpline has also seen a significant increase in calls from the city. By November 2024, more than 5 lakh calls had come to the helpline, compared to just 91,000 calls in 2023. While not all of these calls were from scam victims — most were contacted by scammers but didn’t fall through. Victims – reports of actual damage have increased.
In 2024, till November, 55,707 victims reported a loss of Rs 1,181.43 crore, a three-fold increase from 2023, when 18,256 people complained of a loss of Rs 262.51 crore. Despite heightened vigilance and government campaigns urging citizens to report cybercrimes immediately, the recovery rate of stolen funds remains dismal. In 2024, only Rs 139.15 crore was realized – 11.77 per cent of the total loss – compared to Rs 26.52 crore (10.12 per cent) in 2023, despite significant resources being devoted to tackling cyber crime.
According to police sources, the actual number of cyber crimes and the amount involved in them may be higher as the data obtained from the Cyber Helpline of 1930 does not fully show the impact of cyber crime on the citizens. Due to lack of awareness, many victims do not approach the helpline and instead report their case directly to the local police or cyber police station. As a result, these cases and the amounts involved are not included in the data collected by the 1930 helpline.
Low recovery rate
Police officials attribute the low recovery rate in cybercrime cases to several factors, including delays in reporting incidents, challenges in getting information from intermediaries and service providers, and the involvement of criminals from other states and even abroad.
“We have noticed that a significant number of people who approach us with complaints do not immediately contact the National Cyber Crime Helpline – 1930. This helpline can play a vital role in recovering lost money if contacted immediately. We are actively working to create public awareness about its importance. Cyber fraudsters exploit human psychology, and even a moment of carelessness can lead to huge financial losses,” said DCP Datta Nalawde, Cyber Crime, Mumbai.
In 2024, Mumbai Police’s 1930 helpline team achieved success by saving over 150 crores of victims’ money. Additionally, Mumbai Police blocked 6,500 suspicious mobile numbers in 2024, according to the DCP.
A senior police officer explained the factors behind the recent rise in cyber crime incidents. “There has been a significant increase in cyber fraud gangs operating from various states like Rajasthan, Delhi, Jharkhand, Madhya Pradesh, Odisha, West Bengal and Uttar Pradesh as well as some foreign countries. These gangs carefully research social trends and adapt their methods to exploit vulnerable groups, especially senior citizens or middle-aged people who lack technical expertise but have enough savings in their bank accounts.
As more essential services move online to increase accessibility, convenience and efficiency, fraudsters are quick to exploit these trends. “These criminals delve into popular services and design scams targeting individuals in metropolitan cities. Greed and lack of awareness play a major role in their success,” the officer added.
Cyber expert Ritesh Bhatia presented a critical perspective on the increasing incidence of cyber crime. “While lack of awareness is often cited as the reason for the increase in cybercrime, those in power cannot simply claim that they are doing the work of spreading awareness. Awareness programs are not reaching every person, and despite significant efforts, people continue to lose large amounts of money. “
Bhatia emphasized that cyber crime is increasing due to lack of fear of law. The government should amend the cyber laws and strong policies. Simply renaming the Indian Penal Code to the Indian Justice Security Code (BNSS) is not enough. The existing laws should not only punish criminals but also be more effective in deterring potential criminals by setting strong examples,” he said.
Bhatia also highlighted the responsibility of the police department, banks and social networks in controlling cyber crime. “Instead of blaming the victim for neglect, the authorities should be held accountable. These platforms and systems are often exploited by fraudsters. He said that many cyber crimes can be prevented by prioritizing the safety of users over commercial interests.
Fraudsters
– Two types of cyber fraud that will increase in 2024 – investment fraud and employment fraud
– In 2022 and 2023, investment fraud or share trading fraud of Rs 3.87 crore and Rs 7.76 crore were reported in 5 cyber police stations respectively. According to the RTI data, an investment amounting to Rs 191 crore has been defrauded till June this year.
– Groups in other states target new stock market investors or business startups. Data of such vulnerable individuals is collected through floating advertisements or social media posts
– 15-20% victims of share trading fraud reported to cyber police stations are chartered accountants, leading bank managers, doctors, professors, serving and retired IAS, IPS and IRS officers, lawyers, etc.
– Work fraud or work fraud worth Rs 1.23 crore and Rs 40.77 crore was reported in 5 cyber police stations in 2022 and 2023 respectively. In the year 2024 till the month of June there were reports of job fraud of Rs 36.89 crore
– Most job scams were task job frauds, tricking people through “work from home” ads.
– Digital Arrest Cases of cyber fraud are on the rise in metros and tier two cities, prompting Prime Minister Narendra Modi to warn citizens against it.
– Fraudsters operate from Rajasthan to Cambodia, Haryana to Indonesia, police say
– A cyber police officer said that cyber crime cases of less than 15-20 lakhs committed by gangs spread across Rajasthan (Bharatpur), Nuh/Mewat (Haryana), Jharkhand, West Bengal, etc. are usually through KYC update, action work. Fraud, non-payment of power bills, ATM card suspension, UPI payment fraud, etc.
– Large-scale frauds are through digital arrests, investment/share trading frauds, etc. by professional gangs operating from Cambodia, Indonesia, Myanmar, Dubai and Ajman along with some Indian groups from Cambodia, Indonesia, Myanmar, Dubai and Ajman. Call centers by international groups, controlled and run by suspected Chinese nationals, force Indian, Pakistani, Bangladeshi individuals to commit cyber fraud in India, police say.
– A senior police officer said fraudsters use internet-based calls and virtual private networks (VPN) to target people, making it difficult to trace them. Since mule bank accounts are used in fraud, the money trail ends after a point.
— To evade the vigilance of law enforcement agencies and banking channels, fraud gangs use hawala operators to transfer money to eWallets in US dollars. They convert the money into USD to send abroad after paying taxes. Once the money crosses the border, it’s gone.
– A cyber police inspector said the responsibility also lies with security companies whose names are misused to cheat people in the digital space. These companies should identify gangs imitating their platforms and report them.
– After the Covid-induced lockdown, investing in the stock market, SIP-mutual funds and insurance, along with home culture became popular. Fraudsters saw a huge opportunity in exploiting two “weaknesses” of human behavior – greed and fear – police say.
‘Be aware, be aware’
D Shivanandan, former Maharashtra DGP: Cybercriminals and victims are spread across the globe. It is now almost impossible to catch criminals as they operate without borders. There are no international protocols yet for cooperation and coordination between countries. The government is issuing public awareness advertisements. But the number of crimes and losses are increasing day by day. The only solution is to educate people. Think, stop and act is the only way to stop crime.
Dutta Nalawde, DCP Cyber: Citizens should be aware and alert. They should not fear fraudsters impersonating law enforcement officers, as there is no concept of digital arrest or detention in our legal framework. Instead of panicking, people are advised to go to the police.
Akshat Khaitan, Cyber Legal Expert and Founder of AU Corporate Advisory and Legal Services (AUCL): Citizens should be alert and aware as scammers rely on anxiety and desperation. 6,000 complaints are reported daily on the National Cyber Crime Reporting Portal with an average loss of Rs 60 crore reported daily. Also, the 1930 helpline received 60,000 calls per day, 3,700 fraudulent accounts per day and 35 percent of the reported amount received was over 5 million. As India moves towards a digitally empowered society, the risks posed should not be overlooked.
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