Modus operandi of cyber scammers evolving with technological advancement Manipur lost Rs 25.45 cr to cyber fraud

By Our Staff Reporter
IMPHAL, Nov 22: Manipur lost a whopping Rs 25.45 crore to cyber fraud in 2024, a significant jump from only Rs 3.30 crore in 2023.
This was revealed when this paper was investigating a financial fraud, reported and shared by a reader who wishes to remain anonymous.
The reader who doesn't want to be identified said his father was targeted and swindled of a large sum of money by a fraudster.
The fraudster identified himself as an agent of a well known financial institute, shared the reader.
The reader shared that the agent frequently sent messages on WhatsApp on matters related to approval of loan, closure of loan and EMI correction related issues.
Using forged documents, the agent gained the trust of his father on WhatsApp and tricked him into transferring money via UPI payment application.
After learning it was a financial fraud, a complaint was then filed online on  the National Cybercrime Reporting Portal (NCRP), and a case was registered with the Singjamei police station.
A senior officer of the Manipur Police said financial fraud is a well-orga- nised crime carried out by gangs or racketeers.
Financial fraud includes theft of money using digital devices, data theft, ransom-ware attack, cyber extor- tion/blackmail, investment and loan fraud, phishing attack, social media fraud and digital arrest etc.
Ransomware is a type of malware that encrypts or locks the victim's personal data until a ransom is paid.
Phishing is a scam where attackers deceive people into revealing sensitive information or installing malware such as viruses, worms, adware, or ransomware.
From innocent citizens and traders to bureaucrats and politicians, people have fallen victims to one form of financial fraud or another. There have been a number of financial fraud related cases in Manipur, said the senior police officer.
With time and technological advancement, the scammers' modus operandi or method of stealing money is evolving. Staying informed and vigilant can avoid oneself from falling victims to the scammers, said the officer.
The officer informed that India lost a staggering Rs 22,845 crore to cyber fraud in 2024.
The country lost Rs 7,465 crore in 2023, and  Rs 2,306 crore in 2022.
The country is projected to lose Rs 1.20 lakh crore to financial fraud in 2025.
While Manipur lost only Rs 48.60 lakh in 2022 and Rs 3.3 crore in 2023, it has lost a whopping Rs 25.45 crore to cyber fraud in 2024.
This leap from Rs 3.3 crore to Rs 25.45 crore is significant and alarming and it underscores the need for education and awareness on cyber fraud, said the officer.
Talking about the methods used in financial fraud/cyber fraud, the police officer said, scammers usually use burner phones, which are temporary and can be discarded easily to evade tracking and identification.
Scammers change SIM cards, mobile phones and locations frequently to conceal their identity and location. They usually chose to operate from border areas between States to cause jurisdiction problems and complicate investigation, said the officer.
While scammers are present all over India, most are based in central India. They have trainers to train them on deceiving people for money. Such a racket has also been found in Thoubal district, said the officer, without identifying the exact location in the district or giving further information.
The officer further informed that scammers use mule accounts for transaction of money to avoid detection.
The officer explained, when a person from Imphal has been deceived and made to transfer Rs 10,000, the scammers will not withdraw the entire amount in one go.
"Using debit cards, the scammers will withdraw the Rs 10,000 in small amounts from all over the country. For example, one of their gangs in Delhi will withdraw Rs 1,000, another member in Mumbai will withdraw Rs 500, and a third person will withdraw Rs 500 from Chennai, and so on," the office said.
Fraud money usually ends up in accounts in foreign countries including the Philippines, China and Dubai etc "complicating investigation".
"Money stolen from people here in Imphal have been found to be withdrawn in Dubai and converted to Bitcoins," the office said.
Scammers also use stolen personal information, details of Aadhaar, PAN and bank accounts  to deceive people of their money or conduct unauthorised or fraudulent transactions, the police officer said.
"How they get personal information of people related to their Aadhaar, PAN and bank accounts is surprising. There sure are private players who sell such data or information and people who collect and buy them," the office said.
Such personal data are crucial for many scammers who randomly call or send messages to people in search of their next victims, the officer added.
"Unknown numbers calling people and asking for information such as OTP (One Time Password), debit card PIN and CVV (card verification value) number to transfer/steal money were frequent some time ago. Now, the scammers have evolved, and they would ask people for "confirmation code" or "cancellation code" instead of "OTP" to appear trustworthy," said the officer.
People must never, under any circumstances, share their debit card PIN, CVV number and OTP with anyone, the officer added.
Citing a classic example of a fraud, the police officer said, scammers usually try to gain the attention and interest of their target victims by informing them of something like a gift or other potential gains.
An unknown person on the phone would call and inform a victim that he has received a gift from a multinational corporation overseas. The caller would then ask the victim to share the OTP sent to confirm if he is willing to accept or decline the package (gift). Once the OTP is shared, the scammer will use it to transfer/transact money from the victim's account, said the officer.
One of the most reported cases of fraud at present is financial fraud over social media, said the officer.
The victims of such fraud on social media are usually well-established businessmen, bureaucrats and politicians, the officer added.
For example, the officer said, scammers would hack the WhatsApp account of an IAS officer and use it to receive money from his friends or co-workers.
From the IAS officer's account, scammers would send messages to his contacts, asking for money for emergency use. Believing it to be true, his co-workers, subordinate officers would send money, say Rs 5,000 each, to the account given by the scammers.
Another prevalent form of financial fraud is digital arrest, said the officer.
Explaining the crime, the officer said, scammers will pose as police officers or officers of other law enforcement agencies and even Judges of Court over the phone.
This scam usually happens over video calls.
For example, scammers, posing as police, will threaten victims that they are under digital arrest and can't leave or disconnect their phones.
"Scammers may, for example, use the recent Delhi bomb blast case and say to the victims that  mobile phones under their names have been found at the blast site, and hence they are being investigated and put under digital arrest," said the officer.
Threatening the victims of physically arresting them or their family members, the scammers will then ask them to transfer money.
Fearing arrest, the victims will comply and lose lakhs of rupees, the officer said.
Many doctors, teachers and businessmen have fallen victim to digital arrest, the officer added.
Here, it is very important for people to know that the police or any law enforcement agencies cannot arrest any person digitally or online, the police officer said.
"There is no such thing as a digital arrest. No one can be arrested over the phone by any law enforcement agencies," said the officer.
To stay safe from investment and loan related fraud and other such crimes, people should check the firms concerned are registered with the Securities and Exchange Board of India (SEBI).
To stay safe from cyber fraud/attack of various kinds, people should avoid tapping on malicious links and downloading unknown applications. They should download applications from Google Play Store or App Store only.
"Anybody can become a victim of cyber fraud. Staying informed and vigilant can avoid falling victims to the crimes," the officer said.