Cybersecurity threats are rapidly escalating in India, with digital arrest scams becoming a major issue. Even well-educated individuals are falling victim to these sophisticated schemes.
The concept of a digital arrest does not exist in law. These scams involve cybercriminals masquerading as law enforcement officials or government agencies like the State Police, CBI, Enforcement Directorate, and Narcotics Bureau.
These scams often leverage official-sounding language and sometimes even use fake police or court documents to appear legitimate. Scammers sometimes use deepfake technology to create convincing video calls, making it even harder for victims to distinguish between a real and a fraudulent interaction.
Scammers may also send fake arrest warrants, legal notices, or official-looking documents via email or messaging apps. They accuse victims of severe crimes like money laundering, drug trafficking, or cybercrime.
Common claims include: "a phone number linked to your Aadhaar number is involved in sending abusive messages or making threatening calls," "a consignment with drugs addressed to you has been intercepted," or "your son has been found engaged in nefarious activity." They may even fabricate evidence to make their accusations more credible.
India has seen a significant rise in digital arrest scams, affecting individuals across different strata of society. The problem is exacerbated by the fact that many people are unaware of the nuances of cybercrime and can easily fall prey to such tactics.
Factors contributing to the rise of these scams in India include:
The impact of digital arrest scams on victims can be severe. Apart from financial loss, victims often experience psychological distress and a loss of trust in digital platforms. Educated individuals, who might otherwise be cautious, can also fall victim to these scams, as the fear of legal repercussions can cloud judgment.
A new phishing campaign unveiled by researchers from DomainTools is a phishing campaign on the go, deceiving users via fake text messages. The messages masquerade as trusted brands like Amazon to get the targets to give away sensitive data. This operation is put at the hands of the threat actor "Chenlun," who was seen tricking people last year for masquerading as a USPS delivery alert during the holiday season. On 18 October 2024, consumer targeting waves, this wave represents new waves in tactics that target trusting consumers on the most-used brands.
Phishing Attack Evolution: From USPS Notification Scam to Authentication and Authorization Hack
In December 2023, DomainTools reported on the earlier approach that Chenlun used through exploiting USPS alerts to instruct users on how to navigate to fraudulent websites. This scheme, also labelled as "smishing, tricked users into message prompting them to visit virtually identical websites to the one genuine USPS websites. These next sent information that victims did not need to provide. With the current attack, however, Chenlun used the more narrow deception of alerts that there is unauthorised access to his or her online store accounts. This prompted victims into confirmation of their account information with links that led him to a scam website. To this end, it goes without saying that one ought to be careful when opening any link on email or text.
Advanced techniques of hiding and concealing evidence
The strategies that Chenlun uses today are more advanced than that of not being detected. The phishing attack this year is different from the past years because it does not use domain names containing USPS but instead uses a DGA. A DGA automatically generates new, arbitrary domain names, which creates an added difficulty in blocking malicious websites and makes it challenging for the security systems to identify phishing attempts. The constant change in the infrastructure of the domain leaves Chenlun free to continue their attacks without instant interference from cybersecurity defences.
Changed Domain Structures and Aliases
The latest phishing campaign also demonstrates the changed structure of the Chenlun domain. Last year, the fraudsters utilised domains like the official USPS websites. This time around, they change them into simple domains and even switch to other registrars and name servers. Now, they use NameSilo and DNSOwl, for example, and not Alibaba Cloud's DNS service, just like last year. The changing tendency makes phishing attempts less predictable and also complicates the procedure for cybersecurity analysts in relation to the identification and monitoring of suspicious domains.
Moreover, the most recent activity of Chenlun used pseudonyms like "Matt Kikabi" and "Mate Kika". These pseudonyms, which were first identified in the 2023 report, have more than 700 active domains. Reusing these identities, Chenlun has been able to maintain a massive presence online undetected by cybersecurity tools.
Collaboration as a Critical Form of Defense Against Phishing
DomainTools emphasises that effective countermeasures against phishing attacks require the collective efforts of organisations. Recommendations from security experts include active monitoring of registration patterns, sharing threat intelligence, and developing robust strategies that can counter changing phishing techniques.
DomainTools further emphasises that Chenlun's strategy changes reflect the ongoing problem that cybersecurity professionals face. By constantly changing obfuscation techniques, Chenlun underlines the importance of domain-related data in identifying patterns and suspect domains.
Takeaway for Business and Consumers
Continuous activity by Chenlun also points to the fact that vigilance needs to be maintained, given the sophistication in phishing scams. Business entities need to strengthen cybersecurity measures in monitoring domain registrations and promote threat intelligence sharing. Individual consumers need to maintain vigilance by avoiding a response to unsolicited messages or links.
In short, Chenlun's latest phishing campaign calls out for proactive defence. While the attackers continue adapting with a view to remain unseen, the necessity for people to stay updated and network inter-sectorally is the urgent requirement in the world of digitization.
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.
In the past year, 49% of Hong Kong respondents faced online threats, up from 40% previously, according to Norton. Scams were the most common, impacting 34% of respondents, with nearly two-thirds losing money or time. Phishing and malware each affected 28% of respondents.
Cyber scams have become the most prevalent online threat in Hong Kong. These scams range from phishing emails and fraudulent websites to sophisticated social engineering tactics.
Phishing attacks, where cybercriminals disguise as legitimate entities to steal personal information, have seen a marked increase. These attacks often come in emails or messages that appear to be from trusted sources, such as banks or government agencies. Once the victim clicks on a malicious link or downloads an attachment, their personal data is compromised.
Malware attacks are another growing concern. These malicious software programs can infiltrate systems, steal data, and cause extensive damage. The SCMP survey indicates that a considerable portion of the population has been affected by malware, leading to data breaches and financial losses.
In June, police arrested 10 individuals for impersonating mainland security officials and defrauding a 70-year-old businesswoman of HK$258 million (US$33.2 million) in a phone scam.
By August, local authorities, including the police and the Hong Kong Monetary Authority (HKMA), instructed 32 banks and 10 stored-value-facility operators to broaden their anti-fraud alerts to cover suspicious transactions at bank counters and online.
Despite advancements in technology, human vulnerabilities remain a significant risk factor. Cybercriminals often exploit the lack of awareness and vigilance among users. For instance, clicking on suspicious links, using weak passwords, and failing to update software are common mistakes that can lead to security breaches.
Punjab and Sind Bank (PSB) recently issued a public notice alerting customers to a new scam involving fraudulent messages and malicious APK files. This scam threatens grave financial losses if customers do not take proper precautions.
How the APK Scam Works
Step 1: Creating Panic with Fake Messages
Scammers initiate the fraud by sending text messages that mimic legitimate bank communications. These messages claim that recipients must update their Know Your Customer (KYC) information to avoid having their bank accounts blocked. The fraudulent messages create a sense of urgency, making recipients more likely to follow the instructions.
Kaushik Ray, Chief Operating Officer of Whizhack Technologies, explains that these messages exploit users' fears and desires, bypassing rational judgement. The goal is to trick recipients into downloading a malicious APK file, a common format for Android apps.
Step 2: Installing Malicious APK Files
Once recipients are convinced by the false narrative, they are instructed to download and install an APK file. These files often contain malware. Upon installation, the malware grants hackers access and control over the victim's mobile device.
Step 3: Executing Cyber Attacks
With control of the device, hackers can perform various malicious activities. These include installing a keylogger to capture sensitive information like banking credentials and passwords, launching ransomware attacks that lock the device until a ransom is paid, and accessing the clipboard to steal copied information such as account numbers.
How to Protect Yourself from APK Scams
To protect against these scams, PSB advises customers to take the following precautions:
1. Avoid Downloading Files from Unknown Sources: Only download apps from trusted sources like the Google Play Store.
2. Do Not Click on Suspicious Links: Be wary of links received in unsolicited messages, even if they appear to be from your bank.
3. Block and Report Suspicious Contacts: If you receive a suspicious message, block the sender and report it to your bank or relevant authorities.
4. Never Share Personal Information Online: Do not disclose personal or financial information to unverified sources.
Why APK Scams Target Android Users
Ray highlights that this scam primarily targets Android users because APK files are specific to Android devices. iOS devices, which use a different file format called IPA, generally have stricter controls against installing third-party apps, making them less vulnerable to this type of attack. However, iOS users should remain vigilant against phishing and other scams.
Real-Life Impacts of the APK Scam
Imagine receiving a message that your bank account will be frozen if you do not update your KYC information immediately. This could lead to panic about how you will pay for everyday expenses like groceries, school fees, or utility bills. Scammers exploit this fear to convince people to download the malicious APK file, giving them access to your device and your money.
Stay alert, verify the authenticity of messages, and protect your personal information to safeguard your financial assets.
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.
Through a recent report by PIXM, a cybersecurity firm specialising in artificial intelligence solutions, public schools in the United States face a significant increase in sophisticated phishing campaigns. Threat actors are employing targeted spear phishing attacks, utilising stealthy patterns to target officials in large school districts, effectively bypassing Multi-Factor Authentication (MFA) protections.
Since December 2023, there has been a surge in MFA-based phishing campaigns targeting teachers, staff, and administrators across the US. The attackers, identified as the Tycoon and Storm-1575 threat groups, employ social engineering techniques and Adversary-in-the-Middle (AiTM) phishing to bypass MFA tokens and session cookies. They create custom login experiences and use services like dadsec and Phishing-as-a-Service (PhaaS) to compromise administrator email accounts and deliver ransomware.
The Tycoon Group's PhaaS, available on Telegram for just $120, boasts features like bypassing Microsoft's two-factor authentication. Meanwhile, Microsoft identifies Storm-1575 as a threat actor engaging in phishing campaigns through the Dadsec platform. The attacks involve phishing emails prompting officials to update passwords, leading them to encounter a Cloudflare Captcha and a spoofed Microsoft password page. If successful, attackers forward passwords to legitimate login pages, requesting two-factor authentication codes and bypassing MFA protections.
The attacks commonly target officials such as the Chief of Human Capital, finance, and payroll administrators. Some attempts involve altering Windows registry keys, potentially infecting machines with malicious scripts. The attackers conceal their tracks using stealth tactics, hiding behind Cloudflare infrastructure and creating new domains.
Despite using CAPTCHAs in phishing attacks providing a sense of legitimacy to end-users, there's potential for malicious trojan activity, including modifying Windows registry keys and injecting malicious files. These attacks can result in malware installation, ransomware, and data exfiltration.
Schools are the most targeted industry by ransomware gangs, with student data being a prominent prey of cybercrime. A concerning trend shows unprecedented data loss, with over 900 schools targeted in MOVEit-linked cyber attacks. Recent data leaks, such as the one involving Raptor Technologies, have exposed sensitive records belonging to students, parents, and staff, raising concerns about student privacy and school safety.
To protect against these phishing attacks, organisations are advised to identify high-priority staff, invest in tailored awareness efforts, caution users against suspicious links, and implement proactive AI-driven protections at the browser and email layers.
To take a sharp look at things, the surge in phishing attacks targeting US schools states the significance of cybersecurity measures and the need for increased awareness within educational institutions to safeguard sensitive information and ensure the privacy and safety of students and staff.
Identity theft is a serious concern at a time of rapid technology development and digital commerce. It becomes essential to strengthen our defenses against potential cyber threats as we negotiate the complexities of internet platforms and financial services. Identity protection must be prioritized immediately, as shown by several recent instances.
A thorough analysis by CNET states that as more people become aware of the significance of protecting their personal information online, there is a growing demand for identity theft protection services. The paper emphasizes that because hackers have become more skilled, protecting sensitive data needs to be done proactively.
The Bengaluru Police have made significant progress in uncovering a sophisticated cyber investment fraud that involved an astonishing amount of Rs 854 crore. The study clarifies the complex network of mule accounts that was essential to carrying out this financial crime.
The cyber investment fraud, as reported by various news sources, involved the arrest of six individuals allegedly orchestrating the massive scam. The criminals exploited unsuspecting victims through promises of lucrative investment opportunities, ultimately siphoning off a colossal sum of money.
Mule accounts, a term less known to the general public, have emerged as a linchpin in cybercrime operations. These accounts act as intermediaries, facilitating the movement of illicit funds while providing a layer of anonymity for the perpetrators. The Bengaluru Police, in their diligent investigation, uncovered the intricate network of mule accounts that were instrumental in the success of this cyber investment fraud.
The criminals behind the fraud reportedly used a combination of advanced technology and social engineering tactics to lure victims into their scheme. Once hooked, the victims were persuaded to invest significant sums of money, which were then funneled through a complex web of mule accounts to conceal the illicit transactions. The scale and sophistication of this operation highlight the evolving nature of cybercrime and the challenges faced by law enforcement agencies in tackling such crimes.
The timely intervention of the Bengaluru Police showcases the importance of proactive measures in combating cybercrime. The investigation not only led to the arrest of the alleged perpetrators but also served as a wake-up call for individuals to exercise caution and due diligence in their online financial activities.
As the digital landscape continues to evolve, the need for cybersecurity awareness becomes more critical than ever. The Bengaluru case underscores the necessity for individuals, businesses, and law enforcement agencies to collaborate in developing robust cybersecurity measures. Education about the tactics employed by cybercriminals, such as the utilization of mule accounts, is crucial for staying one step ahead in the ongoing battle against online fraud.
Cybercrimes have increased alarmingly in recent years in Goa, primarily targeting elderly people who are more vulnerable. The number of cybercrime incidents in the state has been continuously increasing, according to reports from Herald Goa, raising concerns among the public and law enforcement.
Data from the Goa Police Department indicates a concerning rise in cases of cybercrime against senior citizens. Scammers frequently use sophisticated techniques to prey on this group's lack of digital literacy. To acquire unlawful access to private data and financial assets, they employ deceptive schemes, phishing emails, and bogus websites.
In an interview with Herald Goa, Inspector General of Police, Jaspal Singh, emphasized the need for enhanced awareness and education regarding online safety for senior citizens. He stated, "It is crucial for our senior citizens to be aware of the potential threats they face online. Education is our strongest weapon against cybercrime."
To address this issue, the Goa Police Department has compiled a comprehensive set of cybercrime prevention tips, available on their official website. These guidelines provide valuable insights into safeguarding personal information, recognizing phishing attempts, and securing online transactions.
Additionally, experts advise seniors to be cautious when sharing personal information on social media platforms. Cybercriminals often exploit oversharing tendencies to gather sensitive data, which can be used for malicious purposes. Individuals must exercise discretion and limit the information they disclose online.
Furthermore, the importance of strong, unique passwords cannot be overstated. A study conducted by cybersecurity firm Norton revealed that 65% of individuals use the same password for multiple accounts, making them vulnerable to hacking. Senior citizens are encouraged to create complex passwords and consider using password manager tools to enhance security.
The Royal Mail, the UK's national postal service, has reported losses surpassing £1 billion as a combination of factors, including strikes, a cyber attack, and a decrease in online shopping, has taken a toll on its post and parcels business. These significant losses have raised concerns about the future of the company and its ability to navigate the challenges it faces.