Cambodia, Myanmar and Laos- A Hub of Organised Financial Crimes

May 23, 2024

GS Paper III Internal security

Context

As per the Indian Cyber Crime Coordination Centre (I4C), nearly half of financial frauds targeting Indians are originating from the three south-east Asian countries of Myanmar, Cambodia and Laos.

Southeast Asian Financial Crimes Targeting India

Financial Crimes

Chinese Connection: Many web applications used to commit the frauds are written in Chinese language, hence showing the Chinese connection.
Formation of a Committee: Recently, a high-level inter-ministerial committee headed by the Special Secretary (Internal Security) has been constituted aimed at mitigating cybercrime originating from south-east Asia targeting India.
Inclusion under Organised Crime: The newly enacted Bharatiya Nyaya Sanhita (BNS) would come into effect from July 1 and would put such crimes in the “organized crime” category.

Rising Financial Crimes and Southeast Asian Involvement

Financial Crimes

Concerning Statistics: In the first four months of the year, Indians had lost over ₹1,776 crore in 89,054 cases of financial crimes such as digital arrest, stock market scam, investment scam and romance or dating scam and there had been an increase in organized crime from south-east Asia.
Hotspots: Out of the total complaints on the national cyber crime portal, 85% complaints pertain to financial crimes, out of which 48% originate from south-east Asia.
- The financial crime hotspots in Jharkhand, Haryana, Rajasthan and West Bengal were still active and are expanding.

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Organized Crime:

Refers: It refers to actions carried out jointly or severally by members, with the intent of obtaining pecuniary or other advantages.
Types: Organized gang criminality, Racketeering, Syndicate Crime, Drug trafficking, Cybercrime, Human trafficking, Money laundering, Violence, People smuggling, Extortion, Counterfeiting.
Legal Position: India does not have a specific law to deal with organized crime at the national level.

About Cybercrime:

Cyber Crimes encompasses a wide range of malicious activities, including identity theft, financial fraud, hacking, cyberstalking, and the distribution of harmful software, among others.
- It is a crime where a computer is the object of the crime or is used as a tool to commit an offense.
- It involves illegal or unauthorized activities that exploit technology to commit various forms of crimes.
Legal Provision: In India, cybercrime falls under State subjects as per the Seventh Schedule.

About Indian Cyber Crime Coordination Centre (I4C):

It is an initiative of the Ministry of Home Affairs to deal with cybercrime in the country in a coordinated and comprehensive manner.
It was approved in October 2018.

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