An unprecedented rise in cybercrime has hit Mumbai, with citizens losing an estimated Rs 1,181 crore in just 11 months this year – marking a staggering 350 percent increase in such crimes compared to 2023. The most alarming is the trend of fraud with a significant increase in cases of investment fraud, employment fraud and digital arrests in the first six months of 2024.
According to RTI data (up to June 2024), while investment fraud or stock trading fraud has increased almost 25 times from Rs 7.76 crore in 2023 to Rs 191 crore till June this year in the city, the amount of fraud of work stood at Rs 36.89 crore till June, compared to Rs 40.77 crore by 2023.
On December 10, Home Minister Bandi Sanjay Kumar informed the Lok Sabha that the Citizen Financial Cyber Fraud Reporting and Management System, which was launched in 2021 and the 1930 helpline for citizens to report cybercrime, had received more than of 9.9 lakh across the country. since its inception. According to data from the Mumbai police, 77,331 of these complaints – about eight percent of the total – came from Mumbai, a city that represents one percent of India’s population.
The 1930 helpline also saw a significant increase in calls from the city. As of November 2024, more than 5 lakh calls were made to the helpline, compared to 91,000 calls in 2023. Although not all of these calls were made by victims of fraud – most were from people who were contacted by scammers but fell through. victim – reports of actual losses have increased.
In 2024, in November, 55,707 victims reported losses of Rs 1,181.43 crore, a three-fold increase from 2023, when 18,256 people reported losses of Rs 262.51 crore. Despite increased vigilance and government campaigns urging citizens to report cybercrime immediately, the recovery rate for stolen funds remains poor. In 2024, only Rs 139.15 crore – 11.77 percent of the total loss – was recovered, compared to Rs 26.52 crore (10.12 percent) in 2023, despite significant resources devoted to fighting cyber crime.
Sources within the police department indicated that the actual number of cybercrime cases and the amounts involved could be much higher, as statistics reported by the 1930s cybercrime do not fully reflect the extent of cybercrime affecting citizens. Due to lack of information, many victims do not come to the helpline and instead report their cases directly to the local police or online police stations. As a result, these conditions and the amounts involved are not included in the data collected by the 1930 distress call.
Low recovery rate
Police officials attribute the low recovery rate in cybercrime cases to several factors, including delays in victims reporting incidents, challenges in obtaining information from intermediaries and service providers, and the involvement of criminals operating in other states and even abroad.
“We have seen that a lot of people who come to us with complaints do not contact the National Cyber Crime Helpline – 1930 immediately. This helpline can play an important role in recovering lost money if contacted immediately. We are working hard to make the public aware of its importance. Cyber fraudsters exploit the human mind, and even a moment of carelessness can lead to huge financial losses,” said DCP Datta Nalawade, Cyber Crime, Mumbai.
In 2024, the 1930 relief team of Mumbai police achieved success by saving more than Rs 150 crore for the victims. Additionally, the Mumbai Police blocked 6,500 suspicious mobile numbers in 2024, according to the DCP.
A police chief explained the factors behind the recent rise in cybercrime cases. “There has been a significant increase in cyber fraud gangs operating in different states like Rajasthan, Delhi, Jharkhand, Madhya Pradesh, Odisha, West Bengal and Uttar Pradesh, as well as some foreign countries. These criminals carefully study social trends and adapt their methods to exploit vulnerable groups, especially senior citizens or middle-aged people who are not tech-savvy but have a lot of money in their bank accounts.”
As critical services move online to improve accessibility, convenience, and efficiency, fraudsters are quick to exploit these trends. “These criminals do extensive research on popular services and design scams that target people in big cities. Greed and lack of awareness play a major role in their success,” the official added.
Cyber expert Ritesh Bhatia has given a critical view on the rise of cyber crimes. “While lack of awareness is often cited as the reason for the rise in cybercrime, those in power cannot simply claim that they are promoting awareness. Awareness programs do not reach everyone, and despite great efforts, people continue to lose large sums of money.”
Bhatia stressed that lawlessness is contributing to the rise of cybercrime. “The government must introduce strong policies and amendments to computer laws. Renaming the Indian Penal Code as Bhartiya Nyay Suraksha Sanhita (BNSS) will not suffice. “The existing laws must be effective in punishing not only the offenders but also prevent potential criminals by setting strong examples,” he said.
Bhatia also highlighted the responsibility of authorities, including the police department, banks and social media, in fighting cybercrime. “Instead of blaming the victims for negligence, the authorities should be held accountable. These platforms and programs are often exploited by scammers. If user safety was prioritized over business interests, many cyber crimes could be prevented,” he added.
SCAMMERS IN THE WORLD
– Two types of online fraud to increase in 2024 – investment fraud and employment fraud
– In 2022 and 2023, investment fraud or stock trading fraud worth Rs 3.87 crore and Rs 7.76 crore respectively were reported in 5 cyber police stations. This year till the month of June fraud of Rs 191 crore has been reported, reveals RTI data.
– Groups from other states target those who have just started investing in the stock market or trading. The data of such vulnerable people is collected through floating ads or social media posts
— 15-20% victims of stock trading fraud reported to police stations online are chartered accountants, senior bank executives, doctors, professors, retired IAS, IPS and IRS officers, lawyers, etc.
– Job fraud or job fraud worth Rs 1.23 crore and Rs 40.77 crore were reported in 5 online police stations in 2022 and 2023, respectively. In 2024, up to the month of June fraudulent jobs worth Rs 36.89 crore were reported.
– Most of the reported job scams are job scams, by scamming people through “work at home” ads
– Cases of digital fraud are on the rise in major cities and the two states, prompting Prime Minister Narendra Modi to warn citizens about them.
– Fraudsters operate from Rajasthan to Cambodia, Haryana to Indonesia, police said
– The cyber police said that cybercrime cases involving less than Rs 15-20 lakh were committed by gangs spread across Rajasthan (Bharatpur), Nuh/Mewat (Haryana), Jharkhand, West Bengal, etc., mostly due to renewal of KYC, the job of the employee. fraud, non-payment of power bill, ATM card suspension, UPI payment fraud, etc.
– Fraud involving large amounts is due to digital arrests, investment/share-sharing fraud, etc., by criminal gangs operating in Cambodia, Indonesia, Myanmar, Dubai and Ajman, as well as a few Indian gangs. Call centers of international groups, controlled and operated by suspected Chinese nationals, are forcing Indians, Pakistanis, Bangladeshis to commit online fraud in India, police said.
– The police chief said that fraudsters use Internet-based calls and Virtual Private Network (VPN) to identify people, making it difficult to trace them. Since mule bank accounts are used for fraud, the trail of money ends after a point.
– To avoid law enforcement agencies and monitoring of banking channels, fraud groups use hawala operators to transfer money in US dollars through eWallet. They convert money to USD to send abroad by paying taxes. If the money crosses the border, it’s gone.
– The cyber police inspector said that the responsibility also lies with the securities company whose names are being misused in the digital space to defraud people. These companies should identify the criminal groups that use their platforms and report them.
– After the Covid-induced shutdown, investments in stock markets, SIP-mutual funds and insurance, and work from home culture became popular. Fraudsters saw a huge opportunity exploiting two “weaknesses” of human behavior – greed and fear – police said.
‘WATCH OUT, WATCH OUT’
D Sivanandhan, former DGP of Maharashtra: Cyber criminals and victims are spread all over the world. It is almost impossible to catch criminals now as they operate without borders. There are currently no international agreements in place between countries for cooperation and coordination. The government releases advertisements to raise public awareness. But the number of crimes and losses is increasing day by day. The only way is to educate people. Think, pause and act the only way to stop crime.
Datta Nalawde, DCP Cyber: Citizens must remain alert and vigilant. They should not be afraid of fraudsters posing as law enforcement officials, as there is no concept of digital arrest or detention in our legal framework. Instead of panicking, people are advised to talk to the police.
Akshat Khetan, Internet legal expert and founder of AU Corporate Advisory And Legal Services (AUCL): Citizens should remain vigilant and documented as fraudsters rely on anxiety and desperation. About 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 numbers received 60,000 calls daily, 3,700 fraud accounts were reported per day and 35 percent of the reported value was over Rs 50 lakh. As India moves towards a digitally enabled society, the inherent risks should not be ignored.
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