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The Indian Cyber Crime Coordination Centre (I4C) has projected that cyber frauds may cost Indians over ₹1.2 lakh crore in the next year.
This alarming figure highlights the growing threat of cybercrime in India and its potential impact on the economy.
What is the Indian Cyber Crime Coordination Centre (I4C)?
Established under the Union Ministry of Home Affairs (MHA), I4C serves as a central hub for addressing and managing cybercrime issues in India.
It aims to coordinate between various law enforcement agencies, facilitate reporting of cyber crimes, and enhance the overall response to such incidents.
The centre is located in New Delhi.
The I4C has 7 components which are:
National Cyber Crime Threat Analytics Unit (TAU)
National Cyber Crime Reporting Portal (NCRP)
National Cyber Crime Training Centre (NCTC)
Cyber Crime Ecosystem Management Unit
National Cyber Crime Research and Innovation Centre
National Cyber Crime Forensic Laboratory (NCFL) Ecosystem
Platform for Joint Cyber Crime Investigation Team
What is Cyberfraud?
Cyberfraud encompasses a range of illegal online activities aimed at deceiving individuals or organizations for financial gain.
Common methods include phishing, identity theft, and the use of mule bank accounts, which serve to launder illicit funds and facilitate fraud.
Key Highlights of the I4C Projection
Mule bank accounts are a significant source of online scams, with the potential to drain approximately 0.7% of India's GDP.
A substantial portion of these scams originates from countries like China, Cambodia, and Myanmar, indicating a transnational nature of cybercrime.
From January to June this year, financial fraud losses reported through the MHA's cybercrime portal reached ₹11,269 crore, underscoring the scale of the issue.
Cyber Fraud in India
The government has identified 18 ATM hotspots where fraudulent cash withdrawals frequently occur, indicating organized operations.
"Scam compounds" have been established in Southeast Asian nations, where fraudsters, sometimes based in India, use Indian phone numbers to target victims across the country.
There are also reports of money being withdrawn from ATMs abroad using mule accounts, with locations including Dubai, Hong Kong, and Russia.
Way Forward
The MHA plans to convene a meeting with the Union Finance Ministry and the Reserve Bank of India to develop strategies to combat the use of mule accounts.
Banks are urged to improve their transaction monitoring systems to identify suspicious activity, such as high-value transactions from low-balance accounts.
Implementing alerts for multiple logins from a single IP address and sudden changes in transaction patterns could help law enforcement act quickly against fraud.
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