THE RISE OF ONLINE FRAUD: TRENDS, CHALLENGES, AND IMPACTS

“As technology advances, so do the tactics of online fraudsters. Staying informed and vigilant is our best defence against their ever-evolving threats.”

INTRODUCTION

Online fraud refers to fraudulent activities carried out over the internet or a digital platform in order to cheat and exploit unaware persons. It is a fraud scheme performed against a company or a person. 

The frauds are classified into two types: (i) frauds for a business or an individual; and

                                                                  (ii) frauds against a business or an individual.

The year 2005 was well known for some high-profile technological fraud which occurred due to computer development or evolution that unlocked new channels for fraudsters. Online fraud increases due to the modern world’s over dependence on computers.¹

For example; Nagpur woman cheated of Rs. 5 lakhs during a job search online, a journalist cheated of Rs 40000 where he claims he was hypnotised on call, online shopping fraud worth Rs. 8lakhs in New Delhi etc.

CLASSIFICATION

There are four major classifications of cyber crime or cyber fraud:

1. Cyber Crime Against Individuals 

• Email spoofing: In a spoofed email, the e-mail header is sham such that the email looks to be sent from one source but was really sent from another.
• Spamming: Spamming is the practice of sending numerous copies of uninvited mails or bulk e-mails such as chain letters. 
• Cyber Defamation: This is when defamation is committed using computers or with the help of Internet or both.
• Harassment & Cyber Stalking: Cyber stalking is the practise of tracing or following an individual’s internet activities. Many protocols, like e-mail, chat rooms, and user net groups, can be used to do this.²

1. Cyber Crime Against Property 

• Credit Card Fraud: As the name implies, this is a type of fraud that occurs through the use of a credit card. This usually occurs when someone learns the card number or the card is taken.
• Intellectual Property Crimes: Theseincludes: Software piracy, Infringement of copyright, Trademark infringement, Theft of computer source code
• Internet time theft: This occurs when an unauthorised individual uses Internet hours that are genuinely paid for by another person.³

 (3) Cyber Crime Against Organisations 

• Unauthorised Computer Access: Accessing the computer without the permission of the owner. It can be of two forms:

                                a) Data Change or Delete: Unauthorised data change. 

                                b) Computer voyeur: The wrongdoer reads or copies personal information, but neither deletes nor modifies the data.

• Denial of Service: When false requests are all over flooded in the internet and as a result genuine users are unable to avail the service or leads the server to fail. 
• Computer contamination / Virus attack: it is a computer program that may infect other computer programs by making some changes to them such that a copy of it is included. Viruses can infect files or impact the computer’s boot area. 
• Email Bombing: Sending a huge number of emails to an individual, corporation, or mail server, leading it to crash.
• Salami Attack: When small quantities are taken and made into something greater. Usually, financial crimes are committed through these assaults.
• Logic Bomb: This is an event-based program. Here, the computer crashes on the occurrence of some event, as a result, a virus is released or there is some other possibility of damage.
• Trojan Horse: It is an unauthorised program which operates within what appears to be an authorised programme, disguising what it is actually doing. 
• Data tampering: This type of attack includes tampering with raw data right before it is processed by a computer and then changing it back once the processing is finished.⁴ 

 (4) Cyber Crime Against Society 

• Forgery: here currency notes, revenue stamps, and mark sheets are faked with the help of Computers and high-quality scanners and printers.
• Cyber Terrorism: In this terrorist acts are carried by threatening or forcing people with the use of computer resources.
• Web Jacking: Here, hackers acquire access and control over another’s website, they even change the content of the website for political or financial advantage.⁵

HOW TO PROTECT YOURSELF FROM CYBERCRIME

Preventing cybercrime requires a proactive approach and adopting various security measures. Here are some essential steps to help prevent cybercrime:

• Use Strong and Unique Passwords: For all of your online accounts, use strong, complicated passwords and avoid repeating passwords. We can also use a password manager to store and manage our credentials securely.
• use Two-Factor Authentication (2FA): When possible, use 2FA to give an extra layer of protection to our online accounts. This usually provides a unique verification number given to your mobile in addition to our password.
• Maintain Software Updates: Updating our operating system, online browsers, antivirus software, and other apps on a regular basis guarantees that we have the most recent security updates and protected safeguards.
• Be cautious of suspect Emails: Do not read emails or click on links from unfamiliar or suspect sources. Be cautious of phishing attacks, in which attackers act as reputable organizations in order to cheat us into disclosing personal information or login credentials.
• safeguard Your Wi-Fi Network: To safeguard our network, change the default password on our home Wi-Fi router and use a strong encryption mechanism (e.g., WPA2 or WPA3). Furthermore, avoid sending critical data via public Wi-Fi networks.
• Make use of secure websites: When browsing websites, look for “https” and a padlock icon in the URL bar to ensure a secure connection. Entering sensitive information on insecure or questionable websites should be avoided.
• Be aware of Social Media Sharing: Use caution while sharing information on social media sites. Limit the amount of personal information to make it public since hackers might use it for identity theft or targeted assaults.
• Back-Up Your Data on a Frequent Basis: Make frequent backups of your key information and store them securely. Backups can enable you to restore your data in the event of a cyberattack without having to pay a ransom or suffer irreversible loss.
• Educate and Inform Yourself: Keep up to speed on the most recent cybersecurity dangers and best practices. To improve our cybersecurity expertise, attend workshops, read publications, and follow credible sources.
• Make Use of Reliable Security Software: To identify and prevent cyber attacks, install credible antivirus software, anti-malware programs, and firewalls on your devices.⁶

LEGAL REMEDIES FOR CYBER CRIME IN INDIA

In India, cybercrime is addressed through various legal provisions under the Information Technology Act, 2000, and the Indian Penal Code, along with other relevant laws. Here are some legal remedies for cybercrime in India:
Information Technology Act, 2000: The Information Technology Act (IT Act) is India’s major piece of the cybercrime law. It makes unauthorised access, hacking, identity theft, phishing, internet stalking, and the publication of obscene content illegal. Specific portions of the IT Act provide for the prosecution of violators. Under section 43A of the Information Technology Act 2000, the right has been given to a victim to file an appeal in court for compensation for the wrong done to him, as this section provides the penalties and compensations for offences such as ‘damage to the computer, computer system, or computer networks, etc’. Also, the punishment for ‘tampering with computer source documents’ is also provided by the act under section 65.⁷

Indian Penal Code (IPC): The IPC has provisions for dealing with cybercrime. In situations of cyber fraud, internet scams, and defamation, such as section 419 cheating by impersonation, section 420 cheating and dishonestly inducing handover of property, and section 499 defamation might be used.⁸

In the case of Pune Citibank Mphasis Call Center Fraud , The court decided that section 43(a) of the IT Act, 2000 is relevant because of the kind of unauthorised access that is involved to perform transactions. The accused were also charged under section 66 of the IT Act, 2000 and section 420 i.e. cheating, 465,467 and 471 of The Indian Penal Code, 1860.⁹

The case of State of Tamil Nadu v. Suhas Katti is one that is considered a landmark with respect to Cyber Law as a result of its quick and effective handling, which made it possible to convict someone in less than 7 months dating from the date the FIR was filed. The person accused of the offence was convicted under Sections 469 and 509 of the Indian Penal Code, 1860 and Section 67 of the Information Technology Act. The person accused of the offence faced 2 years in prison and fined an amount of Rs. 500 as per Section 469 of the Indian Penal Code, Simple Imprisonment of 1 year and fined Rs. 500 as per Section 509 of the Indian Penal Code, and 2 years in years and fined Rs. 4,000 under Section 67 of the Information Technology Act.¹⁰

CONCLUSION

In conclusion, the rise of online fraud has become a pressing issue in our increasingly interconnected world. The advancements in technology have opened up new avenues for criminals to exploit unsuspecting individuals and organizations. The impacts of online fraud are far-reaching, extending beyond financial losses to eroding trust and disrupting lives.

To combat this rising threat, it is imperative for individuals, businesses, and governments to take proactive measures. Enhancing cybersecurity practices, such as using strong and unique  significantly reduce the risk of falling victim to online fraud. Education and awareness play a crucial role in preventing online fraud. Recognizing the common tactics employed by fraudsters, such as phishing scams and identity theft, empowers individuals to identify and avoid potential threats. By staying informed about the latest trends and sharing knowledge with others, we can collectively build a more resilient digital community.

Moreover, collaboration between law enforcement agencies, international organizations, and cybersecurity experts is essential to address the transnational nature of online fraud. Governments need to enact and enforce robust cybercrime laws and regulations, ensuring that cybercriminals are held accountable for their actions. Ultimately, the fight against online fraud requires a combined effort from individuals, businesses, governments, and technology providers. By adopting proactive cybersecurity measures, promoting education and awareness, and fostering international cooperation, we can mitigate the risks posed by online fraud and create a safer digital landscape for all.

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