Parliamentary panel discusses measures to combat cyber fraud

The Parliamentary Standing Committee on Home Affairs said it is diligently taking steps to address the issue of cyber fraud, a phenomenon affecting many people on an everyday basis.

The parliamentary panel met in Delhi for a two-day meeting last Wednesday and Thursday. This significant committee was chaired by BJP MP Radha Mohan Das Agarwal. The agenda of the meeting focused on the implications of cybercrime, security, and prevention, with serious discussions held regarding the prevention of cybercrime.

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Over the course of two days, this meeting has seen representatives from the Ministry of External Affairs, the Ministry of Corporate Affairs, the Financial Intelligence Unit-India (FIU-IND), the Central Bureau of Investigation, and the National Investigation Agency (NIA), as well as representatives from both public and private sector banks, present their views to the committee regarding measures related to ‘cybercrime—outcomes, security, and prevention.’

According to sources, The parliamentary standing committee has been informed about the emergence of new and complex methods of fraud, which include loan app blackmail, fake investment schemes, fraudulent job offers, deceptive gambling applications, and phishing-based electricity and telephone bill scams, among others. These fraudulent methods are targeting vulnerable elderly individuals by creating psychological stress.

Members of the parliamentary standing committee have engaged in a detailed discussion regarding the escalating risks of cyber fraud.

During the meeting, the parliamentarians expressed their concerns over numerous incidents occurring under the guise of digital arrests. According to the assessment presented at the committee, there has been a 21-fold increase in incidents of digital arrests between 2022 and 2024, resulting in reported losses exceeding 200 billion rupees.

Additionally, the Financial Intelligence Unit (FIU) provided information regarding the misuse of mule accounts, where fraudsters are transferring illicit funds abroad through ATMs, cryptocurrency transactions, and shell companies, utilising foreign IP addresses, which have raised significant red flags.

Members of the parliamentary standing committee have raised concerns during this meeting regarding the lack of public awareness about fraudulent methods. They have enquired with the government as to why extensive awareness campaigns through television, OTT platforms, cinema, or mobile alerts are not being conducted regarding new methods of digital arrests and other financial frauds.

Additionally, there have been calls for stringent legal and institutional measures. The FIU has informed the committee that a consultation has been issued to the RBI, and instructions have also been given to coordinate with 14C (Indian Cyber Crime Coordination Centre), along with recommendations to strictly enforce KYC regulations.

During the meeting, the committee members proposed the establishment of a national task force. Additionally, it was suggested that mule accounts and fake SIM cards be legally prohibited in order to effectively eliminate the core of the fraud network.