{"id":139757,"date":"2024-10-24T20:37:23","date_gmt":"2024-10-24T15:07:23","guid":{"rendered":"https:\/\/pwonlyias.com\/stage\/?post_type=current-affairs&#038;p=139757"},"modified":"2025-02-13T15:59:35","modified_gmt":"2025-02-13T10:29:35","slug":"cyber-fraud-losses","status":"publish","type":"current-affairs","link":"https:\/\/pwonlyias.com\/stage\/current-affairs\/cyber-fraud-losses","title":{"rendered":"Cyber Fraud losses could amount to 0.7% of GDP, projects Ministry&#8217;s study"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Indians are likely to lose over \u20b91.2 lakh crore over the next year to cyber-frauds, shows a projection made by the<\/span><b> Indian Cyber Crime Coordination Centre (I4C)<\/b><span style=\"font-weight: 400;\">, which runs under the Union Home Ministry.<\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>Key Highlights of the Projections<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Projected Losses:<\/b><span style=\"font-weight: 400;\"> Losses through cyber fraud is expected\u00a0 to be 0.7% of the country\u2019s GDP.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Mule Bank Accounts:<\/b><span style=\"font-weight: 400;\"> These accounts, used to facilitate illegal transactions and launder money, are <\/span><b>significant contributors <\/b><span style=\"font-weight: 400;\">to online financial scams.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Around\u00a0 4,000 mule accounts were identified each day that are involved in facilitating fraud.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>ATM Fraud Hotspots: <\/b><span style=\"font-weight: 400;\">I4C has identified 18 ATM hotspots across India where money is fraudulently withdrawn, and withdrawals have been traced to overseas ATMs in Dubai, Hong Kong, Bangkok, and Russia.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Scam Compounds:<\/b><span style=\"font-weight: 400;\"> Fraud compounds resembling call centers have been identified in<\/span><b> Southeast Asia (Cambodia, Myanmar, Laos),<\/b><span style=\"font-weight: 400;\"> and recently, in<\/span><b> Azerbaijan, <\/b><span style=\"font-weight: 400;\">from where scammers target people in India using Indian mobile numbers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Crypto-linked Money Laundering:<\/b><span style=\"font-weight: 400;\"> Between March and May, cryptocurrency worth \u20b95.5 crore was laundered out of the country through international crypto exchanges using over 350 transactions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Total Losses Reported:<\/b><span style=\"font-weight: 400;\"> Financial fraud losses reported through the<\/span><b> MHA\u2019s cybercrime portal and helpline<\/b><span style=\"font-weight: 400;\"> until June 30, 2023<\/span><b>, totaled \u20b911,269 crore<\/b><span style=\"font-weight: 400;\">, though unreported cases exist.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/www.pw.live\/batches\/upsc\/pw-only-ias?utm_source=seo+upsc+batch&#038;utm_medium=seo+upsc&#038;utm_campaign=seo&#038;utm_id=upsc\" target=\"_blank\" rel=\"noopener\">Enroll now for UPSC Online Classes<\/a><\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>Action suggested to avoid such frauds<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Banking System Vulnerabilities: <\/b><span style=\"font-weight: 400;\">The government emphasises that banks should improve their systems to detect and flag unusual transactions.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Special monitoring of high-value transfers in accounts with low balances, multiple account logins from single IP addresses, and sudden increases in transaction volume.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Action Plans:<\/b><span style=\"font-weight: 400;\"> The MHA is set to meet with the Union Finance Ministry and the Reserve Bank of India to develop mechanisms to curb mule accounts and prevent further losses.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>What is cyber fraud?<\/b><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-139745 alignright\" src=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/10\/247-671a4c94de27c.webp\" alt=\"Cyber Fraud\" width=\"405\" height=\"358\" srcset=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/10\/247-671a4c94de27c.webp 653w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/10\/247-671a4c94de27c-300x265.webp 300w\" sizes=\"(max-width: 405px) 100vw, 405px\" \/><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cyber fraud is a<\/span><b> blanket term to describe crimes<\/b><span style=\"font-weight: 400;\"> committed by cyberattackers via the internet.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These crimes are committed with the intent to illegally acquire and leverage an individual&#8217;s or business\u2019s sensitive information for monetary gain.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-size: 16pt;\"><b>Examples of Cyber Fraud Threats<\/b><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Phishing Scams: <\/b><span style=\"font-weight: 400;\">Fake emails from seemingly trusted sources trick users into revealing sensitive data, like passwords or financial information.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Malware Attacks<\/b><span style=\"font-weight: 400;\">: Malicious software designed to harm systems, steal data, or create backdoor access for attackers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Ransomware:<\/b><span style=\"font-weight: 400;\"> Criminals encrypt files and demand payment for decryption, often through email attachments or malicious links.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>DDoS Attacks<\/b><span style=\"font-weight: 400;\">: Overwhelm servers or networks to disrupt services, using botnets or exploiting protocol vulnerabilities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Social Engineering: <\/b><span style=\"font-weight: 400;\">Manipulating individuals emotionally to extract confidential information through personalised contact.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>About Mule bank Account<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Money mule account <\/b><span style=\"font-weight: 400;\">: Refers to a bank account that is used to receive and transfer funds acquired illegally on behalf of others.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Money Mule<\/b><span style=\"font-weight: 400;\">: Someone who transfers or moves illegally acquired money on behalf of someone else.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Person may become a money mule intentionally or unintentionally by receiving illegally acquired funds and helping in its transfer to others.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>For Example: <\/b><span style=\"font-weight: 400;\">Fraudsters may approach prospective victims (mule account holders) with some offers and ask the victims to lend, share or rent their bank accounts\/ cards.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Money mules add\u00a0 layers of distance between crime victims and criminals, which makes it harder for law enforcement to accurately trace money trails.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Mode of transactions:<\/b><span style=\"font-weight: 400;\"> Move funds in various ways including through bank accounts, cashier\u2019s checks, virtual currency, prepaid debit cards, or money service businesses.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books\/upsc-textbooks?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+Textbooks\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Check Out UPSC NCERT Textbooks From PW Store<\/span><\/a><\/span><\/p>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.9975%; height: 683px;\">\n<tbody>\n<tr style=\"height: 683px;\">\n<th style=\"width: 100%; height: 683px; border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle;\">\n<h3><span style=\"font-size: 16pt; color: #000000;\"><b> Indian Cyber Crime Coordination Centre<\/b><\/span><\/h3>\n<ul>\n<li aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">I4C is an<\/span><b> initiative of the Ministry of Home Affairs<\/b><span style=\"font-weight: 400;\"> to deal with cybercrime in the country in a coordinated and comprehensive manner.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">It was approved in October 2018.<\/span><\/li>\n<\/ul>\n<h4><span style=\"font-size: 15pt; color: #000000;\"><b>Objectives of I4C<\/b><\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">To act as a nodal point to curb Cybercrime in the country.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">To strengthen the fight against Cybercrime committed against women and children.<\/span><\/li>\n<\/ul>\n<h4><span style=\"font-size: 15pt; color: #000000;\"><b>It has seven components<\/b><\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">National Cyber Crime Threat Analytics Unit<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">National Cyber Crime Reporting Portal<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">National Cyber Crime Training Centre<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Cyber Crime Ecosystem Management Unit<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">National Cyber Crime Research and Innovation Centre<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">National Cyber Crime Forensic Laboratory Ecosystem<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Platform for Joint Cyber Crime Investigation Team.<\/span><\/li>\n<\/ul>\n<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/div>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 100.043%;\">\n<tbody>\n<tr>\n<td style=\"width: 130.811%; text-align: center; border-style: solid; border-color: #000000;\" colspan=\"2\"><span style=\"font-size: 18pt;\"><b>Must Read<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 50.5357%; text-align: center; border-style: solid; border-color: #000000;\"><a href=\"https:\/\/pwonlyias.com\/stage\/editorial-analysis\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">UPSC Daily Editorials<\/span><\/a><\/td>\n<td style=\"width: 80.2753%; text-align: center; border-style: solid; border-color: #000000;\"><a 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Ministry.<\/p>\n","protected":false},"author":11,"featured_media":139713,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"tags":[],"paper-wise":[2089],"subject":[2100],"acf":[],"_links":{"self":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/139757"}],"collection":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs"}],"about":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/types\/current-affairs"}],"author":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/comments?post=139757"}],"version-history":[{"count":1,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/139757\/revisions"}],"predecessor-version":[{"id":139758,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/139757\/revisions\/139758"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/media\/139713"}],"wp:attachment":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/media?parent=139757"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/tags?post=139757"},{"taxonomy":"paper-wise","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/paper-wise?post=139757"},{"taxonomy":"subject","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/subject?post=139757"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}