IIT Kanpur-incubated nonprofit startup Future Crime Research Foundation (FCRF) has released a whitepaper on cybercrimes impacting India. The report comes as India, on one hand, is rapidly embracing digitisation, and on the other hand, is grappling with a surge in cybercrimes.
The FCRF paper, titled ‘A Deep Dive into Cybercrime Trends Impacting India’, has researched and analysed cybercrime data between January 2020 and June 2023, drawing inputs from publicly available sources including government websites such as the National Crime Records Bureau (NCRB), parliamentary statistics, media reports, etc.
The study has found that online financial frauds account for 77.41 percent of India’s entire cybercrime landscape.
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According to the report, financial frauds encompass a range of cybercrimes aimed at exploiting individuals' financial information and assets through various digital platforms. “The data indicates a concerning trend in cybercriminal activity related to financial fraud in India over the analysed period,” it added.
Listed below are the various kinds of online financial frauds:
UPI Fraud (47.25%)
Unified Payments Interface (UPI) fraud involves attackers exploiting vulnerabilities in India's widely used real-time payment system to conduct unauthorised transactions. The substantial percentage signifies UPI fraud as the most prevalent form of online financial fraud during the analysed period.
Debit/ credit card fraud/ sim swap fraud (11.27%)
Debit and credit card frauds include instances where criminals steal card information to make unauthorised transactions. Sim swap fraud involves attackers manipulating telecom providers to transfer a victim's phone number to a SIM card under their control, giving them access to sensitive authentication codes. The double-digit percentage suggests that card-related fraud remains a significant threat.
Internet Banking Related Fraud (9.28%)
Cybercriminals exploit weaknesses in online banking systems to conduct unauthorised transactions, access account information, or carry out phishing attacks. The percentage reflects a notable threat to online banking security.
Fraud call/ vishing (5.32%)
Fraudulent calls or "vishing" involve scammers impersonating legitimate individuals or organisations to manipulate victims into revealing personal or financial information over the phone. The percentage suggests a significant presence of this socially engineered attack.
E-wallet related fraud (3.45%)
E-wallets are popular digital payment platforms in India. Scammers exploit security vulnerabilities or trick users into revealing their account information to steal funds. The percentage indicates a moderate prevalence of this type of fraud in the country.
Demat/ depository fraud (0.61%)
This category involves fraudulent activities related to demat accounts that hold securities electronically. Fraudsters might manipulate these accounts to conduct unauthorised trades, siphoning off investments or making false transactions. The relatively low percentage implies that this form of fraud is less prevalent in India.
Business email compromise/ e-mail takeover (0.24%)
This involves attackers gaining unauthorised access to business email accounts to conduct fraudulent activities, such as requesting unauthorised money transfers, altering invoices, or stealing sensitive information. While the percentage of the occurrence of this type of online financial fraud in India is relatively low, it's worth noting that this form of attack can result in significant financial losses and data breaches.
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