Author: Abhijit Singh, New Law College, Bhartiya Vidyapeeth, Pune
Introduction
Cybercrime, especially the theft of financial and personal data, has surg
ed in India in the last couple of years. Rapid digitalization of the country has also increased the usage of smartphones, online banking, digital payment, and social media, that has made every individual a prime target of cyber-crooks as well as every business entity. According to reports from the Ministry of Home Affairs, cybercrime in India has been increasing exponentially, with thousands of cases reported annually, most of which are financial fraud, identity theft, and data breaches.
Cybercriminals in India are exploring different ways to exploit a weakness in digital systems, mainly phishing, ransom ware, breach of data, and social engineering tactics. Financial institutions and government agencies, e-commerce sites, and even individuals do not go unscathed under the attacks.
This article explores some of the high-profile cybercrime cases in India targeting financial and personal data, the methods used by cybercriminals, and the need for stronger protections and awareness in the fight against this growing menace.
Abstract
Cybercrime has emerged as a significant challenge in India, especially in the context of financial and personal data security. The rise of digital transactions, online banking, e-commerce, and social media platforms has made individuals and organizations vulnerable to various forms of cybercrimes, including identity theft, phishing, financial fraud, and data breaches. These crimes not only threaten the privacy of citizens but also disrupt the nation’s economic stability. India has seen a sudden rise in financial and personal data cybercrimes, primarily due to improper adoption of technology and woeful lack of cybersecurity. The criminals take advantage of weak systems of data protection and the less digital literate users fall prey to sophisticated attacks of ransom ware, card skimming, and social engineering scams.
Cybercrimes Targeting Financial and Personal Data-Types
Phishing And Spear Phishing Attacks
Phishing is one of the most common cybercrimes targeting personal and financial information in India. Cybercrooks send fake emails, messages, or phone calls pretending to be from authentic institutions such as banks, government offices, or e-commerce websites. They usually contain malicious links or attachments that steal sensitive information, such as passwords, credit card details, or Aadhaar numbers.
Identity Theft and Financial Fraud
Identity theft is another increasing issue in India. The cybercriminals steal the personal data of the citizens, including social security numbers, banking details, and personal identification information. Once obtained, they use this data to open fraudulent accounts, take loans in the victim’s name, or make unauthorized purchases. Such activities often go unnoticed until victims receive bills or encounter financial difficulties.
Ransom ware Attacks
Ransom ware attacks are also increasing in India. Ransom ware attacks use malicious software that encrypts the data of the victim, thus making it unavailable to him or her. The attackers demand a ransom in crypto currency for decrypting the key. This is one of the worst cyber crimes that can devastate the individual and the business through financial loss, reputational damage, and operational disruptions.
Card Skimming and ATM Fraud
Card skimming is a type of cybercrime in which the criminal uses a hidden device to steal card information from an ATM or point-of-sale system. Once they have access to this data, they can either sell it on the dark web or use it to make unauthorized transactions. India’s widespread use of debit and credit cards makes it an attractive target for such attacks
Case Studies of Cybercrime in India
The Airtel Payment Bank Fraud (2017)
The most notable case of cybercrime involving financial data in India was when hackers hacked into the Airtel Payment Bank system. Cybercriminals took advantage of the vulnerabilities in the bank’s platform to transfer funds from the customers’ accounts into other fraudulent accounts. The incident sparked a lot of debate regarding the security of mobile payment systems, and as a result, the Reserve Bank of India (RBI) made it harder for digital wallets and payment banks.
Aadhaar Data Breach (2018)
In 2018, a massive data breach compromised the personal and financial information of millions of Indian citizens enrolled in the Aadhaar system. The breach was said to be due to unauthorized access to the UIDAI database, which contains the personal details, biometric information, and financial records of over a billion individuals. The breach again highlighted the risks of centralizing personal data and vulnerabilities of government-managed digital databases.
SBI Card Fraud (2020)
In 2020, a massive fraud was perpetrated on the State Bank of India when cybercriminals used a phishing attack to steal card details of thousands of SBI customers. The hackers used the stolen information to carry out fraudulent transactions, including large-scale online purchases. The case highlighted the increasing threat of phishing scams targeting credit card holders.
Ransom ware Attack on the All India Institute of Medical Sciences (AIIMS), Delhi, 2022
In 2022, AIIMS Delhi was hit by a ransomware attack that crippled its digital infrastructure, which affected the hospital’s access to critical medical data. The attackers demanded a ransom for the decryption key, which reflects the growing attacks on healthcare systems and their data. This attack has been disrupting services for days, affecting thousands of patients and exposing the vulnerabilities of essential institutions in India.
Challenges in Combating Cybercrime
While India has made significant strides in improving its digital infrastructure, challenges remain in effectively combating cybercrime:
Lack of Cyber security Awareness
The low level of cyber security awareness by the general public is a major challenge in preventing cybercrime. Most people fall prey to phishing scams, social engineering, and malware attacks because of ignorance of secure online practices. Cyber security education and awareness campaigns are essential in reducing such risks.
Lack of Cyber Forensics Capacity
Investigating cybercrimes demands specialized skills in digital forensics, however, India still lacks enough professionals trained in this field. Inability to trace cyber criminals, especially those located overseas, adds a layer of complication to the work of law enforcing agencies. The lack of advanced technology and tools used in tracking digital evidence contributes to another layer of difficulties in investigating and prosecuting cybercrimes.
Cross-border Nature of Cybercrime
The transnational nature of cybercrime presents one of the biggest challenges when trying to catch criminals, often based in other countries. Often, India relies on international cooperation to solve cybercrime issues, which is hamstrung by issues of jurisdiction and international legal frameworks. The same lack of cooperation leaves criminals to act with impunity as they move across borders.
Conclusion
Cybercrime targeting financial and personal data has become a major concern in India, with criminals using increasingly sophisticated methods to exploit vulnerabilities in digital systems. The country’s rapid digital transformation has created new opportunities for cybercriminals, but it has also underscored the need for stronger cybersecurity measures, improved awareness, and a more effective legalframework. India can reduce the impact of cybercrime by taking proactive steps against such challenges and protecting the citizens’ financial and personal data in the digital age.
FAQS
1. What is cybercrime targeting financial and personal data?
Answer: Cybercrime aimed at financial and personal information includes illegal activities where criminals take the help of the internet, stealing, manipulating, or using sensitive financial or personal details such as bank account and credit card numbers, Aadhar details, passwords, and any other private data. Their common tactics include phishing, identity theft, financial fraud, and hacking.
2. What are the common types of cybercrimes targeting financial and personal data in India?
Answer: Phishing Attacks: Malicious emails, messages, or websites that dupe people into revealing sensitive information.
Identity Theft: Stealing personal details for fraudulent activities, such as opening bank accounts or taking loans.
Credit Card Fraud: Unauthorized use of credit/debit card details for financial theft.
3. How prevalent is cybercrime in India?
Answer: Cybercrime is growing rapidly in India. According to the National Crime Records Bureau (NCRB), cybercrime cases in India increased by over 11% in recent years, with a significant rise in financial frauds and personal data theft. The rise in online transactions, digital banking, and e-commerce has created more opportunities for cybercriminals.
4. What are the major risks to financial data in India?
Answer: The major risks include:
Online Fraudulent Transactions: Purchases and transfers that are made using stolen card details or bank credentials.
Data Breaches: Hacking or careless organization that exposes personal and financial data.
Social Engineering: Manipulation of individuals into revealing confidential information such as PINs or passwords.
Malware and Spyware: Software that monitors online activities, capturing passwords and financial data.
