Government’s Crackdown on Digital Fraud
In its fight against digital frauds and cybercrimes, the Centre has blocked over 7.81 Lakh SIM cards and more than 2.08 Lakh IMEIs (International Mobile Equipment Identity) till February 28.
This extensive blocking of SIM cards and IMEIs represents one of the government’s most significant actions to combat the rising tide of digital fraud and cybercrime in India. By targeting the communication tools used by fraudsters, authorities are working to disrupt the infrastructure that enables these criminal activities.
The scale of this operation—nearly 8 lakh SIM cards and over 2 lakh IMEIs—indicates the widespread nature of SIM-based fraud operations in the country and the government’s determined response to address this growing challenge to digital security.
Replying to a written question in the Lok Sabha yesterday, union minister of state for home affairs Bandi Sanjay Kumar said that the Indian Cybercrime Coordination Centre (I4C) has identified and blocked more than 3,962 Skype IDs and 83,668 WhatsApp accounts used for digital arrests.
The minister’s response in Parliament highlights the government’s focus on dismantling the communication networks used by cybercriminals. Digital arrest scams, where fraudsters impersonate law enforcement officials to extort money from victims, have emerged as a particularly troubling form of cyber fraud in recent years.
The successful identification and blocking of these Skype IDs and WhatsApp accounts demonstrates the effectiveness of the I4C’s monitoring and enforcement capabilities in tracking down cybercriminals across multiple digital platforms.
The Central Government and Telecom Service Providers (TSPs) have devised a system to identify and block incoming international spoofed calls displaying Indian mobile numbers that appear to be originating within India. Directions have been issued to the TSPs for blocking such incoming international spoofed calls,” Sanjay Kumar said in his response.
This collaborative approach between the government and telecom service providers represents an important step in preventing call spoofing—a technique commonly used by fraudsters to disguise their identity and location. By blocking international calls that falsely display Indian mobile numbers, authorities are addressing a key vulnerability that has been exploited for numerous scams.
The minister’s statement underscores the importance of public-private partnerships in developing effective countermeasures against evolving cyber threats.
Earlier this month, Sanjay Kumar informed the Parliament that Indians lost INR 1,935.51 Cr to digital arrest scams in 2024.
This staggering figure reveals the severe financial impact of digital arrest scams on Indian citizens. With losses exceeding INR 1,935 crore in just digital arrest scams alone, the economic damage caused by cyber fraud has reached alarming proportions, justifying the government’s intensified efforts to combat these crimes.
The substantial financial losses reported to Parliament highlight why digital fraud has become a priority concern for policymakers and law enforcement agencies across the country.
Role Of Ministry of Home Affairs’ I4C
Operating under the aegis of the Home Ministry, I4C plays a crucial role in the immediate reporting of financial frauds and preventing the siphoning of funds by fraudsters.
The Indian Cybercrime Coordination Centre serves as the central hub for coordinating India’s response to the growing challenge of cybercrime. Its focus on rapid response to financial fraud reports has proven critical in preventing fraudsters from completing transactions and disappearing with stolen funds.
By centralizing cybercrime reporting and response, I4C has established itself as a vital component of India’s digital security infrastructure, enabling more effective coordination between different law enforcement agencies and regulatory bodies.
Established in 2020, I4C also oversees the 2021-launched Citizen Financial Cyber Fraud Reporting and Management System, which has helped prevent fraudsters from siphoning off around INR 4,386 Cr. The initiative has also handled over 13.36 lakh complaints related to financial fraud.
The Citizen Financial Cyber Fraud Reporting and Management System represents one of I4C’s most successful initiatives. Since its launch in 2021, this system has demonstrated remarkable effectiveness in preventing financial losses, with the prevention of approximately INR 4,386 crore in potentially fraudulent transactions.
The high volume of complaints processed—over 13.36 lakh—indicates both the scale of the cybercrime problem in India and growing public awareness about the importance of promptly reporting suspicious activities.
Recently, MHA under I4C launched a national cybercrime reporting portal (https://cybercrime.gov.in) and a national cybercrime helpline number (1903) to allow citizens to report various types of digital crimes, with a strong focus on crimes against women and children.
These new reporting channels represent an important expansion of I4C’s capabilities, making it easier for citizens to report cybercrimes and receive assistance. The special emphasis on crimes against women and children reflects the government’s commitment to protecting vulnerable demographics from digital exploitation.
By providing multiple avenues for reporting—both online through the portal and via telephone through the helpline—the MHA is working to ensure that all citizens, regardless of their technological proficiency, have access to cybercrime reporting mechanisms.
Kumar’s response comes at a time when both Indian government institutions and private players are facing a volley of cyber attacks.
The timing of the minister’s statement is particularly relevant given the increasing sophistication and frequency of cyber attacks targeting both public and private sector organizations in India. This broader context of rising cyber threats underscores the importance of the government’s multi-pronged approach to digital security.
Surge In Online Frauds In India
As per RBI disclosure for FY24, online frauds in the country surged 334% year-on-year (YoY) to 29,082 in FY24 from 6,699 in FY23.
This dramatic increase in online fraud cases, as revealed by the Reserve Bank of India, signals an alarming acceleration in cybercriminal activity. The more than four-fold jump in reported cases within a single year highlights how rapidly the digital fraud landscape is evolving in India.
This surge coincides with the growing digitalization of India’s economy and financial systems, creating new opportunities for cybercriminals to target unsuspecting users.
Meanwhile, the country lost INR 177.05 Cr to cyber frauds in FY24, more than double compared to INR 69.68 Cr in FY23.
The financial impact of this surge in online fraud is clearly reflected in the more than doubled monetary losses between FY23 and FY24. With losses increasing from INR 69.68 crore to INR 177.05 crore, the economic damage caused by cyber fraud represents a significant drain on the Indian economy.
These figures likely represent only reported cases, suggesting that the actual financial impact of cyber fraud may be substantially higher when accounting for unreported incidents.
Meanwhile, the MoS for finance Pankaj Chaudhary responded earlier in Lok Sabha that Indians lost INR 107.21 Cr to cyber frauds in the first nine months of the ongoing financial year 2024-25 (FY25).
The statement from the Minister of State for Finance provides a concerning update on the continuing financial impact of cyber fraud in the current fiscal year. With losses already exceeding INR 107 crore in just the first nine months of FY25, the trend of substantial financial damage from cyber fraud appears to be continuing.
This information from the Finance Ministry complements the data provided by the Home Ministry, offering a more comprehensive picture of the cyber fraud challenge facing India from both security and financial perspectives.
Measures Taken To Curb Online Frauds
The government, alongside regulatory authorities like the RBI, have taken several measures to crack down on online fraud. These measures include awareness campaigns, blocking scammers, a reporting mechanism, and I4C deployed initiatives.
The multi-faceted approach adopted by the government and regulatory authorities reflects the complex nature of the cyber fraud challenge. By combining public education with enforcement actions, reporting systems, and specialized initiatives, authorities are working to address cyber fraud from multiple angles.
This comprehensive strategy acknowledges that no single approach can effectively combat the diverse and evolving tactics used by cybercriminals in today’s digital landscape.
Earlier this month, the DoT launched Sanchar Saathi mobile application, expanding its existing digital security initiative. It was also reported to be teaming up with SBI and some telcos to develop a solution to alert about stolen one-time passwords (OTP) to combat phishing attacks.
The Department of Telecommunications’ Sanchar Saathi mobile application represents an important step in empowering citizens with tools to protect themselves from digital fraud. By expanding access to digital security features through a mobile application, the DoT is making these protections more accessible to the average user.
The collaboration with SBI and telecom companies to develop an OTP theft alert system demonstrates a forward-thinking approach to addressing one of the most common vectors for phishing attacks in India. This public-private partnership combines the resources and expertise of multiple sectors to create more effective cybersecurity solutions.
Last year, the Department of Telecommunications (DoT) introduced a digital intelligence platform and the “Chakshu” facility on the Sanchar Saathi portal to report suspected fraudulent communications.
The digital intelligence platform and “Chakshu” reporting facility represent significant enhancements to India’s cybersecurity infrastructure. By providing specialized tools for identifying and reporting fraudulent communications, the DoT is improving the country’s capacity to detect and respond to emerging cyber threats.
These initiatives build upon the existing Sanchar Saathi portal, creating a more comprehensive ecosystem of digital security tools available to Indian citizens and organizations.
Previously, the Centre held deliberations with fintech startups and law enforcement agencies to collaborate and address challenges related to digital financial fraud. Razorpay also collaborated with MHA to strengthen India’s digital payments security ecosystem.
The government’s engagement with fintech startups highlights the recognition that innovative private sector companies have a crucial role to play in developing effective countermeasures against digital fraud. By bringing together startups, law enforcement, and established companies like Razorpay, the Centre is fostering a collaborative approach to digital security.
These partnerships are particularly important in the rapidly evolving fintech sector, where new payment technologies and services can create novel vectors for cyber fraud if not properly secured.
While SEBI issued an advisory warning investors about fraudulent trading platforms last year, the RBI also announced plans to establish the Digital India Trust Agency.
The involvement of both SEBI and the RBI in addressing digital fraud demonstrates the broad institutional response to this challenge across India’s financial regulatory landscape. SEBI’s advisory on fraudulent trading platforms addresses a specific segment of financial fraud targeting investors, while the RBI’s planned Digital India Trust Agency represents a more structural approach to building trust in digital transactions.
Together, these initiatives from different regulatory bodies indicate a coordinated effort to protect the integrity of India’s financial systems against the growing threat of cyber fraud.
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