Bengaluru emerges as the leading tech-enabled city for scams: Cyber fraud has been on an upward spiral during the period 2021 through September 2024, reports the police while citing the cumulative loss to this city as an amount of Rs 2,270 crore during the period and six major types of scams where the loss involved nearly Rs 1,788 crore.
Important Fraud Categories
The figures point to considerable losses in the following fraud types:
Investment Frauds: Unrealistic returns promised by fraudsters led to a loss of ₹1,187.2 crore.
Job Frauds: Losses due to fake job offers stood at ₹601.23 crore.
Courier Scams: Well developed courier-related schemes accounted for ₹165.57 crore.
Card Scams: Stolen card details used for fraudulent transactions resulted in losses of ₹116 crore.
Phishing Attacks: Emails and messages designed to steal personal data caused ₹96.98 crore in damages.
Loan App Frauds: Fraudulent lending platforms resulted in ₹32.25 crore in losses.
Challenges in Recovery
Recovery of stolen funds is still a challenge for the investigators. Police have identified two major hurdles:
Delayed Reporting: Victims mostly delay reporting frauds, and thus miss the most crucial "golden hour," when funds can be frozen.
Lag in Banks' Response: Banks used to take up to eight days to provide account details, which adversely affected recovery operations. This is now reduced to 4-5 days, post meetings with RBI, but there is more to be achieved.
AI in Cybercrime
AI has been a gambler for scamsters in Bengaluru. Advanced technologies are being made use of to devise highly believable frauds:
Proposed Solutions
To counter these emergent threats, the authorities have stressed the requirement of public education and systemic reformation. The CEN wing has suggested that:
1. There should be a campaign for citizen education about prevailing scams.
2. There should be better coordination among banks, the police, and regulatory bodies so that the responses are faster.
3. A specific cybercrime wing with special resources should be developed, as already announced by the government.
Although measures to improve response times and raise awareness have shown promise, experts stress that more robust systems are needed to tackle the growing paradigm of cybercriminals. With AI reshaping the way scams operate, staying informed and cautious is now more crucial than ever.
This is a major fraud case whereby delivery partners exploited a weakness in the logistics app Porter, syphoning Rs 90 lakh from Bengaluru. The swindle was detected by a routine business audit conducted in July by Smart Shift Logistics Solutions Pvt Ltd, which runs Porter. After this, an official of the logistics company filed a complaint with the police. Insider involvement was ruled out through automated operations.
The authorities suspected it could be an inside job when the fraud was first detected, considering the scale of the crime. They looked at the backend operations of the company and found nothing internal as most processes were automated. This led to a deep probe with Sarah Fathima, the Deputy Commissioner of Police (Southeast), assigning a team to trace the refunds made by the company since January. This series of operations was headed by ACP Govardhan Gopal, along with inspector Eshwari from the Southeast Cybercrime, Economic Offences, and Narcotics (CEN) police station.
Understanding the Scam
The investigators soon came across several refunds credited to the same accounts, and a rather clear fraud pattern began to emerge. The police were following this chain of suspicious transactions when it led them to a Shreyas TL, a 29-year-old from Hassan's Hirisave. Based on confession questioning of Shreyas, the police managed to seize three others: Kaushik KS, aged 26, from Mandya, Ranganath PR, also 26, and Anand Kumar, 30, both from Mandya.
These were earlier cab drivers and food delivery partners for various online applications who chanced upon loopholes in the Porter app after dabbling in such scams in other delivery services. They eventually managed to pinpoint how to exploit the Porter system through trial and error for their financial gains.
How the scam was run
Porter has a system where the driver can get a part of the total bill through his wallet whenever he accepts the job. And if he rejects the delivery, he will have his money back automatically. The application does not allow abusing this system, and therefore it has a strict cancellation policy where it blacklists the drivers in case they cancel two deliveries consecutively.
The fraudsters bypassed the system. Geo-spoofing is an application of the technology, using which they manipulated the app so as to pose their locations at places where there are few available drivers. This way, they accepted the jobs using their fake delivery accounts. The amount of the bill was credited to their digital wallets. Then the amount was drawn from these wallets into bank accounts. They canceled the delivery, and customers canceled the order and received a refund.
The reason they did not get blacklisted was because of repeated cancellations, so to avoid that, the gang bought fake phone numbers from Telegram groups and created new accounts on the app with them. Additionally, the gang practiced geo-spoofing to change their location into neighbouring states, making it hard for the authorities to trace them.
A Perfected Scam
The operation of the gang was so sophisticated that they managed to make off with a total of Rs 90 lakh from the company. Taking advantage of loopholes in the automation of the app, they had syphoned off the amount without raising any suspicion in the beginning. But finally, after going through a detailed investigation, it was traced by the police, and the fraudsters were caught.
This case shines a light on the importance of secure and foolproof systems in online platforms, especially those handling financial transactions. It also highlights the need to frequently audit and monitor company automated processes to detect fraud before it gets out of hand.
Panaji: In a disturbing cybercrime case, the Goa Cyber Crime Police arrested a Bengaluru resident, Mohan Raj V, for allegedly cyberbullying and extorting a woman from Goa. The arrest was made on Saturday after a strategic operation by the police team.
The case began when the victim, a woman from Goa, filed a complaint with the cyber crime police. She reported that the accused had posted a fake job advertisement for a position at a foreign bank. Responding to the advertisement, the woman was contacted via a chatting app by the accused, who arranged an online interview. During the video call, individuals posing as company representatives coerced the woman into undressing. They recorded the video and took screenshots, which were later used to blackmail her.
According to the complaint, the accused demanded sexual favours in exchange for deleting the compromising material. Over the past two months, he persistently harassed the woman, threatening to make the videos and pictures public if she did not comply. He also demanded that she meet him in Bengaluru.
Following the complaint, the police, led by Superintendent of Police Rahul Gupta, devised a plan to apprehend the accused. A team, including the victim, travelled to Bengaluru and laid a trap. After extensive efforts and a lengthy chase, the accused was caught when he arrived to meet the victim. The police recovered the chats and videos from the accused's phone, which will be sent for a cyber forensic examination.
The investigation revealed that Mohan Raj V used VPN phone numbers to create fake Telegram accounts and post fraudulent job offers. He targeted women by promising high salary packages and conducting fake online interviews.
The accused has confessed to his crimes and has been booked under several sections of the Indian Penal Code, including section 354A (sexual harassment), section 384 (extortion), and relevant provisions of the Information Technology Act. The case is being further investigated by Police Inspector Deepak Pednekar.
SP Rahul Gupta urged the public to verify the authenticity of online job offers through local or cyber police stations before engaging with them. He also cautioned against complying with unethical online demands, no matter the promised benefits.
This case highlights the growing menace of cybercrime and the importance of vigilance in online interactions. The Goa Cyber Crime Police's successful operation furthers the cause for robust cyber security measures and public awareness to prevent such incidents.
It all started on May 5 at 10 a.m., when Rajkumar (name changed), an Indiranagar resident and retired MNC executive, got a call from 8861447031. The caller claimed as a 'FedEx' logistics executive and supplied Rajkumar's Aadhaar and mobile numbers.
He said that a package shipped to Taiwan under Shankar's name contained five passports, a laptop, 3kg of clothing, and 150 grams of MDMA. He forwarded the phone to a "police officer" after claiming a case against him had been filed at Mumbai's Andheri East cyber police station.
A man claimed to be Rajesh Pradhan, DCP (Cybercrime), Andheri and informed Shankar that he was under digital arrest until the inquiry was completed. They warned to arrest him if he left his residence and instructed him to isolate himself in a room. Later, they made a video call to him, and Shankar noticed a police station in the backdrop and assumed he was speaking with actual cops.
Pradhan informed Rajkumar that this was a high-profile and sensitive matter involving VIPs. He was told not to mention their call with anybody and threatened with arrest if he did not obey their instructions.
The con artist added that they discovered a bank account opened in his name that was being used for money laundering. They allegedly examined the charges against him, which included money laundering, NDPS, and other criminal actions, before offering to assist him.
To protect the account, he was ordered to move the full balance in his bank accounts to Reserve Bank of India (RBI) accounts.
After promising to repay him after his transactions were verified, they convinced Shankar to send money to their accounts in several transactions.
After transferring Rs 3.8 crore, Rajkumar was promised that the return would be in his account within 30 minutes of verification and the connection was discontinued. Rajkumar only realized he had been duped after the crooks went mute.
According to Kuldeep Kumar Jain, DCP (East), Shankar submitted a report on May 13, and they were able to freeze Rs 9 lakh within two days.
A case has been filed under the Information Technology Act and IPC section 420 (cheating and dishonestly inducing delivery of property).
According to Jain, such claims should not be taken seriously. The police force has no idea of digital arrests or online (virtual) investigations. If you receive such calls, simply disconnect and report them to your nearest police station or the 1930 cyber helpline. If you lose any money, you should contact the police right away. Delays in filing complaints will have an impact on recovery rates.
In a recent cybercrime incident, a 52-year-old businessman from Bengaluru fell victim to a stock market scam, losing a staggering Rs 5.2 crore. The victim, referred to as Sharath for anonymity, reported the incident to the cybercrime police on April 8. According to his account, the ordeal began when he received a WhatsApp message on March 11 promoting stock market investments with promises of high returns. Despite refraining from clicking the accompanying link, Sharath found himself involuntarily added to a WhatsApp group named "Y-5 Ever Core Financial Leader," boasting around 160 members.
Subsequently, Sharath received numerous calls from unidentified numbers, urging him to download an application linked to the investment scheme. Initially resistant, Sharath eventually succumbed to the persuasion tactics employed by the fraudsters and downloaded the app. Under the guidance of the perpetrators, Sharath began purchasing stocks facilitated by multiple accounts provided by the fraudsters. Assured that his funds were being invested in the stock market, Sharath transferred a staggering Rs 5.2 crore to five designated accounts by April 2.
Despite his growing suspicions, Sharath's attempts to withdraw profits or reclaim some of his invested capital for further investments were thwarted by the fraudsters. It was only then that he realised he had fallen victim to a scam. In response to the complaint, authorities have initiated legal proceedings under the IT Act, with ongoing investigations. Efforts have been made to freeze the funds in the fraudsters' accounts in collaboration with bank officials, raising hopes for potential recovery of some of the lost money, as confirmed by a senior police official.
Senior Citizen Scammed: Woman Loses Rs 6 Lakh
In another distressing incident, a 61-year-old woman fell prey to cybercriminals impersonating Delhi police and Customs officials. Exploiting her fear, the fraudsters falsely accused her of drug smuggling and money laundering, coaxing her to transfer Rs 6.56 lakh. Manipulating her trust, they provided fake validation procedures, leading to her significant loss.
These incidents serve as stark reminders of the growing tactics of cybercrime and the importance of caution while engaging in online transactions. Authorities urge the public to exercise caution and scepticism when encountering unsolicited investment opportunities or suspicious requests for financial transactions. As investigations continue into these cases, efforts to combat cybercrime through deliberate security measures and real-time data sharing remain imperative to safeguard individuals and businesses from falling prey to such fraudulent schemes.
Following a few questions from the ‘agents,’ victim Mahashweta Pal grew suspicious and called the official helpline number of the airlines to inform them about the narrow escape from the fraud.
Pal, the social media manager at Inquest, was taken aback when, on January 1, she received a call from an alleged Indigo agent informing her that her tickets had been cancelled. Pal had purchased a round-trip ticket to Kolkata on Indigo.
"The caller then proceeded to offer two options: immediate rebooking at the same fare or a refund of the original booking amount (Rs 15,600) within 24 hours[…]This purported cancellation was presented as a fact, with no prior notification or explanation provided. The caller told me he could send me a link for repayment on WhatsApp," Pal said.
Pal discovered that her tickets had been cancelled, but that a third party had handled it, after hanging up the phone and dialling Indigo's official hotline number.
She informed that the Indigo ‘agents’ informed her of the cancellation of her tickers and that there was nothing they could do except initiate a “partial refund of the cancelled tickets and I received around Rs 8,000."
However, when Pal asked some follow-up questions, the bogus agents informed them that someone had altered the information on their website. The customer support agent admitted that there were errors in the cancellation information; her phone number and email address did not match what she had entered. This disparity implied that her booking was maliciously altered and that there was illegal access to her account. Even though they acknowledged that there was a problem, they did not provide a fix or the remaining portion of my money.
Following a week of Pal pursuing the case and eventually taking the case to social media, she finally started getting calls from the airlines for assistance.
"The customer care executive was kind enough to share the information about the scammers. The email ID they used was maheshmeena00417@gmail.com and the number to which the OTP was sent was 9257384638. And the IP address was 157.38.67.21," Pal shared.
The airline took further measures to "ensure the security" of Pal's booking when she purchased the flight tickets once again. "We have temporarily blocked any modifications or web check-in of your booking. If you have any further requirements or need to make changes, we kindly request you to contact our IndiGo contact centre for assistance," Indigo stated.
Moreover, on Tuesday, Pal was contacted by another executive informing her that her previous booking, which had been fraudulently cancelled, had been fully refunded.
Bengaluru Police have confronted a freshly growing crime that goes under the name ATM fraud. In this ATM fraud, the actors steal the money from the ATM by fixing a device and hacking the bank’s servers with their master dupe. In recent times, a Columbian woman has been accused of this fraud. She was held in defrauding the State Bank of India (SBI) with a calculated amount of Rs. 17.71 lakhs with her dupe. This case was registered in the Hegdenagar, Northeast Bengaluru, India.