Issued on: 03.11.2024 – 14:56

2 minutes

In August, Indian textile magnate SP Oswal, the company’s chairman Vardhman Group, paid 770,000 euros to scammers posing as federal agents who accused him of money laundering.

The 82-year-old was put under video surveillance at home and threatened with arrest until he paid the ransom.

This “digital arrest” scam has ensnared other high-profile victims, including judges, doctors and army officers.

Between January and March alone, victims transferred around €1.3 million to fraudsters, despite anti-fraud campaigns.

The Deadly Toolkit

According to Faisal Kawoosa, Chief Technology Analyst Techarc consulting firmthe scam seems to be evolving.

“Government and regulatory bodies have come up with measures to make it harder for fraudsters to use traditional means such as phishingso they found this new technique,” Kawsoosa told RFI.

“But they have a limited shelf life because eventually everyone gets to the point that a scam like this exists,” he added.

A report in May found that 46 percent of cyberattacks targeting India originate from Laos, Myanmar and Cambodia, prompting Indian officials to engage in discussions on cross-border cybercrime in Southeast Asia.

Run by the state Indian Cyber ​​Crime Coordination Centre (ICCC) estimates that Indians who endured various forms of online attacks lost 18 billion rupees – about 2 billion euros – in four months earlier this year.

Prime Minister Narendra Modi urged students to support state campaigns under the hashtag #SafeDigitalIndia.

“No government agency threatens you like that on the phone, asks or demands money for such a video call…” Modi said in a radio interview on the topic of digital arrest.

According to the ICCC, India recorded around 741,000 cybercrime complaints in the first four months of 2024 – a 113% increase from 2021 to 2023.

“Hold Hostage”

TV journalist Richa Mishra – who was a victim of digital arrest – admitted she was confused and unsettled during her hours-long ordeal on October 5.

“At one point I was thinking of ending my life,” said Mishra, who was charged with drug trafficking when she was held hostage by online scammers.

Mishra later said it took him several hours to register a complaint with portals set up as security beacons.

Police recently arrested a man in a Delhi suburb for allegedly laundering 100,000 euros on behalf of fraudsters.

The role of banks in facilitating these transactions has come under scrutiny, with revelations that while fraudsters funnel billions of rupees through banks, less than 2% of the stolen funds are recovered.

Online financial fraud has increased by 1,000% in the last five years in India, with 955 million internet users and 536 million WhatsApp subscribers – key targets for cybercriminals.

From January to April this year alone, India recorded over 700,000 cybercrime complaints following 1.5 million reports in 2023.