BEWARE! Southeast Asia emerges as key hub for cyber frauds targeting India; Rs 1775 cr lost to over 88k scams

A recent report indicates that a staggering 46% of defrauded money in India is now lost to cybercrimes originating from Cambodia, Myanmar and Laos, surpassing previous hotspots like Jamtara and Mewat.

Team Asianet Newsable

First Published May 24, 2024, 4:34 PM IST

In recent years, the landscape of cybercrime in India has undergone a significant shift, with southeast Asian countries such as Cambodia, Myanmar, and Laos emerging as new hotspots for financial cyber fraud. A recent TOI report indicates that a staggering 46% of defrauded money in India is now lost to cybercrimes originating from these nations, surpassing previous hotspots like Jamtara and Mewat.

According to Rajesh Kumar, the chief of Indian Cyber Crime Coordination Centre (I4C), the scale of financial loss due to cyber fraud is alarming. Between January and April of this year alone, Rs 1,420 crore was lost to 62,587 investment scams, Rs 222 crore to 20,043 trading scams, Rs 120 crore to 4,600 digital arrest scams, and Rs 13 crore to 1,725 romance/dating scams originating from southeast Asia, Kumar was quoted as saying in the TOI report.

In the previous year, over one lakh investment scams originating from the region were reported on the Indian national cybercrime reporting portal, leading to the registration of 10,000 FIRs.

These figures underscore the magnitude of the threat posed by cybercriminals operating across borders. Moreover, the involvement of Chinese nationals in these scams cannot be overlooked. Many Chinese individuals are known to work in these scam hubs, and numerous suspected apps used for fraud are in the Chinese language. This suggests a possible nexus between cybercriminals in southeast Asia and actors in China.

Also read: 'Criminal syndicates take Indians hostage': MEA warns of fake agents luring people for jobs in Cambodia, Laos

Amidst a general surge in significant fraud cases reported in 2024, the report stated that the national cybercrime reporting portal received over six lakh complaints, amounting to a total of Rs 7,061 crore. In response, I4C has successfully intervened, saving Rs 812.7 crore from being defrauded.

In the past four months as per the report, collaboration between I4C and law enforcement agencies has resulted in significant achievements. This includes the debit-freeze of 3.2 lakh mule accounts, blocking of over 3,000 URLs and 595 apps under the Information Technology Act. Additionally, since July 2023, 5.3 lakh SIM cards and more than 80,000 IMEI numbers have been suspended. Moreover, there has been notable progress in combating unlawful content, with 3,401 cases addressed across social media platforms, websites, and WhatsApp in the last two months alone.

The rise in cyber fraud originating from southeast Asia has prompted swift action from Indian authorities. The modus operandi of these cybercrime gangs is well-organized and sophisticated. The I4C and state law enforcement agencies have intensified efforts to crack down on illegal recruitment agents and cybercrime units operating in these countries.

According to the report, gullible Indians, lured by fake job advertisements, are recruited to work in cybercrime factories located in southeast Asia. Once there, they are coerced into defrauding unsuspecting victims in India through various means, including social media advertisements, gaming, digital arrest scams, and romance/dating scams.

"These gangs work in an organised manner, from scam compounds ... many of them were linked to casinos earlier," Kumar told TOI.

The illicit gains from these criminal activities are laundered through intricate financial channels, including Indian bank accounts and cryptocurrency transactions. Despite the crackdown on recruitment agents and cybercrime units, the problem persists, necessitating continued vigilance and collaboration between Indian and international law enforcement agencies.

The Indian government has taken steps to address the growing threat of transnational cybercrimes by establishing an inter-ministerial committee comprising various law enforcement and intelligence agencies. To date, the foreign ministry has facilitated the safe return of 360 Indians who were ensnared in cybercrime units. Furthermore, an additional 60 individuals are slated to return from Cambodia in the near future.

In May of this year, the Visakhapatnam cybercrime police apprehended three illegal recruitment agents involved in sending vulnerable youth to Cambodia. Parallel operations led to similar arrests in Odisha. The Ministry of External Affairs has been actively collaborating with authorities in Phnom Penh to facilitate the rescue and repatriation of Indians held in these compounds, ensuring their safe return home.

Earlier this month, the MEA cautioned Indian nationals seeking employment opportunities in Laos and Cambodia to remain vigilant against potential scams.

"All Indian nationals who are traveling for jobs in Cambodia and the Southeast Asian region, are advised that many fake agents are operating in the region, who along with agents in India, are luring people to scam companies, involved especially in cyber crimes. Anybody who takes up a job in Cambodia should do so only through authorised agents approved by the Ministry of External Affairs of India," the ministry said in the statement.

This proactive approach underscores the gravity of the situation and the commitment to safeguarding Indian citizens from cyber threats originating from abroad.

Last Updated May 24, 2024, 4:34 PM IST