The New Age of Online Theft: Can We Protect Ourselves from Cybercrime?

A 73-year-old woman from Pune subscribed to the ad-free plan on an OTT platform to enjoy shows without interruptions.

However, when the advertisements continued despite the subscription, she reached out to the company’s customer care, requesting a refund.

During this process, she shared her bank account details with the customer service representative. Unfortunately, within minutes, ₹17.64 lakhs were siphoned from her account.

A similar complaint was reported at the Taloja Police Station in Navi Mumbai.

Venkateshwar Rao, a 63-year-old man, tried to simplify his financial transactions by downloading a popular UPI app. Shortly after, he received a call from someone claiming to be a customer care executive from the app, offering assistance with the installation.

Within no time, over ₹3 lakhs were stolen from his account.Whether it’s unknowingly taking out credit cards in a customer’s name, pretending to be a customer care executive to obtain KYC details, sending malicious links via email or message to trick users into visiting fraudulent websites, or stealing login credentials to drain accounts these scams have become all too common today.

Why is it that almost everyone receives some kind of scam call on their phone every day? Where did we go wrong? How did these scammers get access to our financial information and phone numbers?

Table of Contents:

• The Rise of Cyber Crimes
• The Rapid Growth of Digital Transactions
• Common Tactics Scammers Use to Steal Money from Bank Accounts
• Security Measures Taken by Companies
• How to Obtain Compensation?
• The Responsibility of Companies
• The Risk
• Steps to Take if You Become a Victim of Cybercrime
• How to Protect Yourself from Cybercrime

The Rise of Cyber Crimes

In the first four months of 2024 alone, the public has lost a staggering ₹1,750 crores to cyber crimes.

Even when victims report these crimes promptly through the cybercrime platform and take the necessary steps to recover their lost money, it often doesn’t reach them.

The Indian Cyber Crime Coordination Committee (I4C) states, “Government efforts have helped save crores of rupees, but only about 9% to 10% of the lost funds have been returned to the affected individuals.”

The Rapid Growth of Digital Transactions

Post-COVID, digital transactions have experienced explosive growth, garnering admiration from developed countries.

The widespread use of smartphones and the rapid flow of the internet have significantly contributed to this trend. As a result, both the general public and businesses can conduct financial transactions conveniently from their locations.

However, alongside this growth, the technology used by fraudsters is also advancing. Several factors contribute to this:

1. Easy Data Transfer: The exchange of critical data through digital means allows fraudsters to infiltrate systems and conduct information theft easily.
2. Inadequate Security Features: In some financial institutions, the lack of robust security measures contributes to data breaches.
3. Reduced Regulations: Due to competition among financial institutions and fintech companies, there is a tendency to ease regulations under the guise of streamlining transactions, inadvertently benefiting fraudsters.

Unfortunately, it is the ordinary people lacking economic knowledge or technical expertise who are most affected by these issues.

Individuals who share their OTPs or bank account details often believe they are assisting legitimate employees, unaware of the fraudsters’ tactics. By sharing an OTP, they unwittingly become victims of a crime.

Moreover, these individuals are not compensated for losses incurred from unauthorized digital transactions. Even when a customer makes a payment to a seller in an instant, numerous entities are involved in the transaction.

If any one of those entities has a weakness in data security, it can provide an opportunity for fraudsters to exploit.

Common Tactics Scammers Use to Steal Money from Bank Accounts

Scammers employ various techniques to access people’s bank accounts, including:

1. Impersonating Customer Service Agents: Pretending to be legitimate representatives to extract personal details.
2. Phishing Emails: Sending deceptive emails that aim to steal sensitive information like passwords and bank details.
3. Stealing OTPs: Tricking users into sharing their One-Time Passwords (OTPs) for unauthorized transactions.
4. Malicious Software: Using malware or fake apps to gain access to financial information.

Security Measures Taken by Companies

Banks and other financial institutions are seeking the services of various organizations to protect individuals’ personal financial information from cyberattacks and to strengthen their digital infrastructures.

However, despite these efforts, such frauds continue to occur, and there seems to be no clear solution to prevent them entirely.

How to Obtain Compensation?

In the UK, a law providing compensation for such scams is set to take effect in October 2024. However, for victims in our country seeking compensation, the process is not straightforward.

The amount of compensation, which organization is responsible for paying it, and the maximum limits have not been clearly defined.

Furthermore, the victim must demonstrate that the cause of the scam was not their negligence but rather the systemic shortcomings of the institutions involved.

In July 2023, the Economic Standing Committee stated, “When a cybercrime occurs, investigations can take a considerable amount of time to unfold, and there is no guarantee that justice will be served to the victim afterward. Therefore, it is recommended that companies involved attempt to provide some form of advance payment to alleviate the distress of the unfortunate victims of cybercrime.”

If implemented, this would compel banks involved in scams and intermediary app companies to intensify their efforts to prevent cybercrimes. As a result, this could reduce the losses incurred by the general public.

The Responsibility of Companies

Protecting the public’s money from cyberattacks is a critical responsibility for financial institutions. When introducing new technologies, it is their duty to thoroughly assess the associated risks and to raise awareness among both the public and their employees.

The Risk

If fraudulent activities continue to rise, public trust in the government’s extensive efforts to implement UPI transactions may diminish.

There is a real danger that people will revert to traditional cash transactions, avoiding digital transfers altogether. If this occurs, it will create difficulties for the public and pose an even greater challenge for the government.

Therefore, in addition to regularly issuing warnings to the public, both the government and financial institutions must strengthen their infrastructures to completely prevent scams and intensify their efforts to provide compensation plans for affected customers.

Steps to Take if You Become a Victim of Cybercrime

If you fall victim to cybercrime, take these immediate actions:

1. Report the Incident: Visit the Cyber Crime portal at www.cybercrime.gov.in to report the fraud.
2. Contact Your Bank: Notify your bank to freeze your accounts and prevent further unauthorized transactions.
3. File a Police Report: Report the crime to your local authorities for further investigation.
4. Secure Your Accounts: Change all your passwords and ensure your devices are protected with the latest security updates.

How to Protect Yourself from Cybercrime

To safeguard yourself from cybercrime, follow these essential tips:

1. Never Share Sensitive Information: Avoid disclosing your OTPs, bank details, or passwords.
2. Beware of Suspicious Links: Don’t click on unknown links in emails or text messages.
3. Use Secure Apps: Only download and use apps from verified, trusted sources.
4. Enable Two-Factor Authentication: Add an extra layer of security by enabling two-factor authentication on your accounts.
5. Keep Devices Updated: Regularly update your devices and apps to ensure they have the latest security features.