In view of the rising cyber fraud cases across the country, the Parliamentary Committee on Finance called officials from the Reserve Bank of India, Finance Ministry, National Payments Corporation of India (NCPI) and NASSCOM to understand the complexity of such frauds and introduce remedial measures.
A report recommending the steps to check cybercrime cases is likely to be presented in the Monsoon Session of Parliament.
Several industrial bodies, which presented their concerns to the committee, explained that the increasing scale of digitisation and digital transactions has led to a significant rise in cybercrime cases.
They highlighted the negative impact of the overused one-time password (OTP) method, which has become a breeding ground for phishing scams. They argued that while users suffer from the consequences of these crimes, financial institutions remain largely immune.
The industrial bodies also highlighted the loopholes within transaction-processing institutions and telecom service providers, which make users providing OTPs fall victim to fraudulent activities.
The industrial bodies expressed concern about the lack of appropriate infrastructure, leading to poor law enforcement in the realm of cybercrime. They also pointed out issues related to evidence collection, examination, and presentation in court, as well as the lack of uniform procedures and differences in capabilities among enforcement bodies across jurisdictions in India.
Additionally, the industrial bodies demanded attention to the recruitment and retention of talent within the cybercrime and criminal justice system. They argue that the lack of skilled professionals often leaves victims struggling to find support within an already weak system.
The bodies also highlighted the lack of attention towards architectural and technological thinking. According to them, development is required here to reduce the burden on users, who take decisions on financial transactions.
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