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Indian Express
an hour ago
- Business
- Indian Express
Study of money mules in Karnataka cybercrimes calls for regulation of cryptocurrency to check galloping crime rate
The lack of regulation of the cryptocurrency market in India has been identified as being among the key factors in controlling money laundering linked to cyber crimes in the country by a 'Study on the Use of Money Mules in Cyber Crimes' conducted by the Centre for Cybercrime Investigation Training and Research of CID police in Karnataka. The combination of an unregulated cryptocurrency market and acceptance of cryptocurrency deposits by gaming platforms and casinos has made recovery of funds stolen in cybercrimes highly challenging, the study, which was unveiled at a conference of senior police officers in Bengaluru on Friday, has reported. Quoting data from the National Cyber Crime Reporting Portal (NCRP) for the year 2024, the study states that ₹2,915 crore was lost in 6.11 lakh cyber crimes in Karnataka – ₹1860 crore from private banks (3.02 lakh cases) and ₹948 crore from public banks (2.55 lakh cases). The losses caused by cyber crimes in Karnataka are reported to have increased fourfold in 2024 from ₹660 crore reported in 2023. The study has looked at the subject of money mules who knowingly or unknowingly facilitate the usage of bank accounts to facilitate the laundering and layering of money stolen from lakhs of innocent victims through scams like investment frauds, digital arrests etc, leading to the eventual transfer of the stolen funds to the operators of cybercrime networks through modes like cryptos or direct withdrawals. 'The unregulated cryptocurrency market is exacerbating the issue of money muling. Recent cases have revealed that laundered money is either converted into cryptocurrency using a money mule or transacted through P2P transactions with genuine crypto traders,' says the report authored by cybercrime police experts and the Data Security Council of India. The laundering of cybercrime proceeds through cryptos 'is further complicated by certain gaming platforms, such as casinos, that allow cryptocurrency deposits. Many cryptocurrency exchanges either do not require KYC or are based in foreign countries with lenient regulatory frameworks, both of which pose challenges for investigators,' says the study. The study has identified the tracking of the conversion of money stolen in cybercrime as 'a significant challenge for law enforcement agencies'. Apart from cash withdrawals at overseas ATMs using Indian debit cards in locations such as Dubai, Hong Kong, and Bangkok, as well as ATMs in remote areas across India, cryptocurrency conversions are seen as a key challenge. 'In many instances, illicit funds are converted into cryptocurrency through peer-to-peer (P2P) transfers on unregistered platforms and exchanges) changes). According to the CFCFRMS (Citizen Financial Cyber Fraud Reporting and Management System) platform, crypto valued at approximately ₹ 5.52 crores was transferred from March to May 2024 via the Bitget multi-exchange platform,' states the Karnataka study. 'In this process, criminals use mule accounts to funnel funds into international payment aggregators and global wallets such as Pypl from which the money is subsequently transferred to Binance,' states the report. The study has identified regulation of the cryptocurrency market as a key step in regulating the exploding rate of cyber crimes in states like Karnataka. 'There is a pressing need to regulate the cryptocurrency market in India. This regulation should not only require cryptocurrency exchanges to follow specific norms for collecting and verifying user details but also include penal provisions for money laundering and other illegal activities,' says the study on money mules in cyber crimes. In addition 'gaming and other platforms that receive direct cryptocurrency payments need to be regulated, requiring registration and mandatory KYC verification for customers. The government may consider banning non-compliant platforms and prohibiting Indian residents from transacting on cryptocurrency platforms not registered with the Government of India,' says the report. The study has also called for better monitoring of accounts by the banking sector to identify the creation and usage of mule accounts which tend to be dormant accounts or new accounts opened with fictitious details of identity and location. 'Cybercriminals are exploiting the online account opening facilities offered by numerous banks to open mule accounts using fake and nonlocal addresses. For instance, an individual located in Rajasthan may open an online account while providing a Bengaluru address. In one of the cases investigated at CID Bengaluru, up to 125 mule accounts have been opened in a private bank through online channels, where only basic KYC is required, and no physical verification is conducted by the banks,' states the study. Banks not flagging suspicious transactions While the RBI has mandated the generation of 'Suspicious Transaction Reports' to the centralised Financial Intelligence Unit India (FIU-IND) with warnings against non-compliance as part of efforts to regulate cyber crimes, banks tend to default on STRs, says the report. 'Investigations have revealed that banks sometimes fail to flag transactions as suspicious when large volumes occur. This failure is often attributed to negligence on the part of the banks, and in some rare cases, insiders in the bank colluding,' says the cybercrime report. Banks also tend to allow individuals to easily change the registered phone numbers on their bank accounts, and 'genuine accounts are sold to fraudsters who then link their phone numbers, enabling control over internet banking' even if the new mobile number does not match the one registered with Aadhaar. 'Despite the RBI mandates for strict due diligence on mobile number changes, this is not uniformly enforced across banks,' says the study. The study has pointed out that the RBI has also developed an in-house Artificial Intelligence/Machine Learning based solution called 'to detect suspected mule accounts'. 'Another factor aiding the proliferation of mule accounts is the ease with which fraudsters acquire mobile SIM cards. Cybercriminals procure SIMs using forged Aadhaar cards and other identities,' the study has reported. In terms of legal provisions the absence of punitive measures against money mules in the existing laws in the country has been a hindrance to regulating cybercrimes, says the report. 'As neither the Bharatiya Nyaya Sanhita (BNS), 2023 nor the Information Technology Act, 2000 contains sections solely and expressly dealing with money mules, individuals knowingly operating these accounts do not face criminal penalties in cybercrime cases specifically for being a money mule,' the report has stated. 'The entire gamut of cyber crime offences are occurring in the white economy of the country. The mechanisms introduced for financial inclusion like bank accounts and net banking are being misused for cyber crime. The cyber crimes involve the theft of white money through regular banking channels and not unknown networks,' a Karnataka cybercrime officer said.
Hindustan Times
13 hours ago
- Hindustan Times
Ghaziabad: Gang of seven arrested for issuing fake insurance policies
The cybercrime unit of the Ghaziabad police on Friday arrested seven suspects who allegedly used data of insurance companies and issued fake insurance policies to customers in at least 10 states. The gang, during interrogation, revealed that they duped about 1500 customers and amassed about ₹ 4.5 crore during the past two years, said officials. Uttar Pradesh Police arrested the seven alledged fraudsters in Ghaziabad on Friday. (Sakib Ali/HT Photo) The officials said that the two prime suspects worked with a financial services company in Noida till 2021 and left their jobs thereafter. Before leaving, they copied and brought along data of customers from bigger insurance companies. 'The two prime suspects later decided to cheat people and roped in five other suspects. With the data available, they would call the customers in order to renew or issue fake policies and even offer them benefits. Overall, they told the interrogators that they cheated about 1500 people and gathered about ₹ 4.5 crore. They collected money in several accounts and would issue fake policies,' additional police commissioner (CP) Alok Priyadarshi. The police identified the two prime suspects as Aman Agarwal, 29, and Rahul Sharma, 23, both residents of Crossings Republik Township in Ghaziabad. Their five accomplices were identified as Rahul Yadav, 30, Aftab Alam, 25, Deepak Singh, 26, Garvit Tyagi, 24, and Jagjit Singh, 28. The officials said that all seven were arrested in Vijay Nagar. 'They purchased a Thar and XUV300 SUVs from the money they received and also rented two flats from where they operated. They also operated from their SUVs. So far, we have frozen about ₹ 47 lakh in their accounts, and more investigation is going on in the case,' said Addl. CP Priyadarshini. The officials said that the gang targeted residents of Delhi, UP, Bihar, Maharashtra, West Bengal, Rajasthan, and Gujarat. The police said that the suspects have nine cases reported against them to the National Cyber Crime Reporting Portal. The police said that apart from sections of 318 (cheating), 336 (forgery), and 319 (personation), the suspects are also subjected to legal action under section 111 (organized crime) of the Bharatiya Nyaya Sanhita (BNS).
Time of India
3 days ago
- Time of India
1 held for duping youth of 11L
Kolkata: Howrah resident Saurish Naskar (27) was arrested on Tuesday for duping a New Town resident, Uttam Kumar Singh, of Rs 11 lakh. Naskar had contacted Singh on social media and convinced him to invest through a Demat account, promising high returns. Tired of too many ads? go ad free now Singh was added to two WhatsApp groups—VIP 71 Genius Innovation Capital Group and DS Genius Innovation Capital —and tricked into transferring Rs 11 lakh. On realising, he had lost the money, Singh filed a complaint on National Cyber Crime Reporting Portal on March 7 and a FIR at Bidhannagar Cyber PS on April 22. tnn
Hindustan Times
20-06-2025
- Hindustan Times
Interstate cyber fraud gang busted in Barnala
The Barnala police have busted an interstate cyber fraud gang involved in duping people under the guise of facilitating personal loans while the kingpin, Amit Kumar, remains at large, senior superintendent of police Sarfaraz Alam said on Friday. He said that the action had been taken after a complaint was received via the National Cyber Crime Reporting Portal which led to the registration of the first information report on June 9, under sections 318(4) BNS and 66-D IT Act. Followed by which the police conducted raid on June 10 at a fake call centre operating out of Zirakpur and apprehended six accused involved in this interstate cyber fraud operation which are Pawan Kumar, resident of SAS Nagar, Bhawan Mewara, resident of Jodhpur, Ambika, resident of Shimla, G Chinna Reddy, resident of Kadapa, Andhra Pradesh, Jada Veera Siva Bhagyaraj, resident of Kakinada, Andhra Pradesh, Kona Chiranjeevi, resident of Visakhapatnam, Andhra Pradesh. He further said that 67 mobile phones, 18 ATM cards, 17 SIM cards, 1 laptop, 1 CPU , ₹55,000 in cash have been recovered from their possession. The police informed that initial investigations reveal that this gang has been operating for the past two years, targeting individuals across Punjab, Andhra Pradesh, Gujarat, Telangana, Goa, Karnataka, Rajasthan, and other states through fake call centres and social media-based loan scams. It further said that in light of the pan-India footprint of this gang, concerned state police departments are being informed about fraud complaints related to their jurisdictions so that further legal action can be taken at their end in coordination with ongoing investigations. Scrutiny of 21 bank accounts associated with the gang has already revealed suspicious transactions worth approximately ₹6 crore. Given their consistent two-year operation, total fraudulent transactions are estimated to be in the range of ₹20–22 crore, with monthly inflows exceeding ₹1 crore across various accounts. The police said that Kingpin Amit, who is on the run, is a resident of Zirakpur and leads a lavish lifestyle. He is believed to own a luxury gym in a posh locality of Zirakpur, two high-end flats in Mohali and luxury vehicles. Notably, as per the police records, Amit and Bhawan Mewara have many cases registered under Sections 420, 406, 465, 466, 467, 468, 471, and 474 of the IPC at Zirakpur Police Station. Reddy also has a past record with cases under Sections 302, 147, and 148 of the IPC in Andhra Pradesh. SSP Alam stated that efforts are underway to trace and apprehend the kingpin, adding that further arrests and disclosures are likely in the coming days as the probe expands.
Mint
19-06-2025
- Business
- Mint
Pig butchering scams are fooling crypto investors everywhere, learn the warning signs before you invest
The internet can be a scary place, especially as scams become more sophisticated and personal. For instance, this week, US authorities seized $225 million (around ₹ 1,880 crore) in cryptocurrency linked to 'pig butchering' scams, according to a CNBC report. Such scams show how online fraud is evolving at a fast pace. Unlike typical online cons, pig butchering scams are slow and calculated. Scammers initiate contact through social media, WhatsApp, or random texts, often pretending to be friendly professionals or strangers working abroad. They spend weeks or months building trust, sometimes using AI-generated photos and videos to appear genuine. Once a relationship is established, the conversation shifts to a 'guaranteed' crypto investment. Victims are shown convincing apps or websites displaying fake profits and, at times, allowed small withdrawals to build confidence. However, when larger sums are invested, access is suddenly blocked and the scammer vanishes with the money. With more Indians exploring digital assets and cryptocurrencies, these scams are finding new targets, especially among those new to online investing or seeking companionship. Pig butchering scams are run by organised networks operating across borders, often from countries like Myanmar, Cambodia, the Philippines, and even India. These groups use advanced technology and global payment systems, making it challenging for authorities to trace stolen funds. In India, the rise in digital payments and growing interest in crypto have made the scope of such schemes more deadly. The Indian Cyber Crime Coordination Centre (I4C) has reported a sharp increase in crypto-related frauds, with many involving these patient, manipulative tactics. To protect yourself, be cautious if someone you have never met wants to move conversations to private messaging apps, offers urgent investment opportunities, or asks for payments in cryptocurrency. Never share personal or financial details with online acquaintances. If a new contact refuses a video call or seems too eager to discuss investments, it is safest to end the conversation. If you suspect you have been targeted, report the incident on the National Cyber Crime Reporting Portal and keep all communication records. As online scams grow more sophisticated, staying alert and informed is the best way to protect your money and data in a digital environment that's constantly changing.
