Cyber fraud: Mumbai lost Rs 1,000 crore in just 10 months this year

Currently, around 12 types of cyber frauds have been reported in the city. Representation pic/iStock

In the past ten months, cyber fraud in Mumbai has exceeded Rs 1,000 crore, according to data from Mumbai Cyber. The fraud cases were reported to the 1930 helpline, and the Mumbai Cyber team managed to freeze Rs 129 crore within the critical "golden hours," the two hours immediately following the fraud.

As per the official data from January to the first week of November, Mumbai recorded a loss of R1,084,75,20,077 (one thousand eighty-four crore, seventy-five lakh, twenty thousand, and seventy-seven rupees), a 281 per cent increase compared to 2023, when cyber fraud cases totalled around Rs 262 crore reported to 1930. Out of this year's total, the Cyber Cell recovered just Rs 129 crore, accounting for about 12 per cent of the total reported fraud.

In 2022, after the helpline launched in May, frauds totalled Rs 32.35 crore in seven months, and Rs 1.58 crore (4.91 per cent) was recovered during golden hours. Since May 2022, Mumbai has recorded cyber frauds of Rs 1,379.21 crore, with the 1930 helpline receiving 5,74,276 calls, 72,503 registered complaints, and 2,265 FIRs.

The "fake arrest" scam preys on people's fear of legal trouble. Representation pic

According to data from the Cyber Cell, between May 2022 and the first week of November this year, Mumbai has reported cyber fraud amounting to Rs 1,379,21,19,226 (one thousand three hundred seventy-nine crore, twenty-one lakh, nineteen thousand, two hundred twenty-six rupees). Over the past 2.5 years, approximately 5,74,276 calls were made to the helpline, resulting in 72,503 registered complaints and 2,265 FIRs.

Mumbai Cyber Cell officials highlighted that recovering funds is often difficult because fraudsters employ multiple layers to transfer money between accounts. "By the time investigators reach the final layer, the funds have often been converted into digital currencies like Bitcoin and transferred to accounts abroad," an officer of the Cyber Cell said.

The Mumbai Cyber Cell, with support from the Department of Telecommunications, has blocked 30,864 mobile numbers involved in cyber fraud. Currently, around 12 types of cyber fraud are reported in the city, including investment fraud, job scams, digital arrest, extortion, custom gift fraud, admission scams, cryptocurrency fraud, loan fraud, data theft, code tampering, phishing, email spoofing, social media scams, and credit card fraud. Investment fraud and digital arrest are the most commonly reported.

As of September this year, Mumbai has seen 19,895 cyber fraud cases, with a 21.47 per cent detection rate and 4,784 arrests. Investment fraud alone accounts for about 3,617 cases (18.8 per cent of the total), with 753 solved and 868 arrests.

Stock market investment fraud

Luring victims: Fraudsters are enticing individuals with online trading courses, seminars, and mentorship programmes, using social media platforms like WhatsApp, Telegram, Instagram, Facebook, and live broadcasts to reach potential targets.

False representation: These scammers often pose as representatives or employees of government-registered Foreign Portfolio Investors (FPIs). They persuade victims to download applications that claim to allow them to purchase shares, subscribe to IPOs, and access institutional account benefits - all without requiring an official trading or Demat account.

Deceptive practices: Often, fraudsters use mobile numbers registered under fake names to execute these schemes, making it harder to trace their operations.

Digital arrest fraud

The "fake arrest" scam preys on people's fear of legal trouble, with cybercriminals posing as law enforcement.

How it works

Initial contact: The scam usually starts with a phone call or email from someone pretending to be police, often using official language and spoofed caller ID to appear credible.

False allegations: The victim is falsely accused of crimes like money laundering or drug trafficking, and may be shown fake evidence to make it believable.

Threat of arrest: The scammer claims an arrest warrant has been issued, warning that officers will come to the victim's location unless they comply. The scammer introduces a "digital arrest," requiring the victim to stay online on a video call, where they may even show fake police station visuals. Some victims are told to book a hotel room and remain "under digital arrest" for 24-48 hours.

Payment demand: To avoid "arrest" the victim is pressured to pay immediately, often through wire transfers, prepaid debit cards, or cryptocurrency.

Intimidation tactics: Threats of violence or further legal trouble are used to push for fast compliance.

Once the victim pays, the scammer disappears, sometimes reappearing to demand more money or make additional threats.

How is the cyber police being trained?

According to sources, Mumbai police conduct regular training on cybercrime for officers, covering topics like cyber law and forensic techniques. In the last 2.5 years, they've held 310 sessions with 8,000 officers. They also publish standard operating procedures, hold webinars, and coordinate with banks, social media platforms, and internet providers. Over 30,000 cybercriminal phone numbers have been blocked in the past 3.5 years.

Safety tips issued by the Cyber Cell

Do
>> Always keep/lock your social media profile private
>> Use strong passwords and different passwords for each account
>> Set purchase limits on debit/credit cards
>> In case of cybercrime please report on helpline no. 1930 or www.cybercrime.gov.in, or visiting local police stations

Don't
>> Don't accept unknown calls
>> Don't click on unknown emails, URLs, QR codes, etc.
>> Don't accept friend requests from strangers
>> Don't share personal details on social media

Awareness to prevent cyber fraud

The Cyber Cell runs awareness programmes at schools, colleges, and public places, covering cyber safety through presentations and banners. Since 2022, they've held 643 campaigns, with over 500 hoardings and 114 street plays. Drawing competitions have reached 700 schools and over 3,00,000 students. They also use social media and the press for regular updates.

Checklist for citizens filing complaint

Before calling helpline 1930
1. Mobile number of the complainant
2. Name of the bank wallet/merchant from which the amount is debited
3. Account no./wallet merchant, UPI ID from which the amount is debited.
4. Transaction ID (12 digit UTR number)
5. Transaction date
6. Debit/Credit Card number in case of fraud using card credentials
7. Screenshots of transaction or any other image related to the fraud (filed by citizen)