Cyber Frauds and Online Scams: How to Stay Safe in the Digital Age.

 These frauds have led to hundreds of billions of losses worldwide and 1 in every 5 individuals are estimated to be a victim of online frauds. In India itself, ₹52,900 Crores have been stolen from the country over the last six years, with over 80% of the said total occurring within just the last two years, 2024 and 2025. While making the transition, one might notice the association of AI with fraudulent activities. Initially, in the earlier stages of such schemes, the modes of contact such as messages or emails were crude, with spelling mistakes and non-existent email addresses. With the introduction of AI, it has become exponentially easier for such mal-intentioned individuals to mask legitimacy as falsehood. It is important that we recognize the role of technology as a double-edged sword, as both scam detection and execution have been made easier.

As our machines become more human-like, are we as humans becoming gullible in the process?

It is essential to note and understand the basic differentiations of the various forms of scams we encounter, although it must also be noted that even without scientific advancements, fraudulent activities had existed and will continue to exist on a large scale.
To begin with, we have phishing and quashing scams, where phishing is the act of contacting individuals through emails and messages with fake information, whereas quashing is the more recent and similar scam, but through QR codes. Moving on, we have deepfake and voice-cloning scams associated with AI, where the fraudster uses AI to replicate a person the victim knows or trusts and deceive them into transferring funds. A similar and common scam is that of a SIM swap fraud, where the fraudster tricks your phone service provider into transferring your number to their phone, giving them access to your OTP and other services. Another scam is pig butchering, where the fraudster deceives the victim over a period of time, establishing a connection of sorts and convincing them to invest in a particular fraudulent platform. Senior citizens are more vulnerable to being scammed and are targeted through what is called messaging app malware, where banking trojans or malicious links are shared with them through WhatsApp and similar apps, further taking advantage of trust.
Most of us have received a message or call about us being under digital arrest and that the only way to free or pay bail is by transferring a certain amount of money. The reason cited is usually a consignment of a particular nature having been found or received, with the fraudster claiming to be from police, CBI, or customs departments and tricking people into paying the alleged fine. Fraudsters also sometimes pose as bank officials and ask for OTPs to debit or credit accounts, after which the accounts are hacked.

Is it a possibility that with scammers being able to impersonate everyone from relatives to police officials, has trust itself turned into a weakness?

Although we know some of the usual modes and methods of being scammed, it is difficult to identify and detect them, which can be attributed to AI. Fraudsters are able to create phishing emails and scripts, fake QR codes, voice recordings and deepfake videos with just a few seconds of a person's voice. With data breaches, fraudsters can access accurate personal information instead of generic information, making scams personalized and easier to fall for. The volume of attacks has increased due to the ability to send the same script or phishing email to thousands of people at once. It has become a lot harder to take legal action due to jurisdiction issues as fraudsters operate from countries other than the ones they target. Dark web, cryptocurrency, and other means of communication have made detection difficult and anonymity possible, as has the rapid advancement in technology outrunning laws and regulations.

It is important to note that although the current state of affairs is cause for concern, there are steps being taken to reduce the damage. In India, there is a cybercrime helpline and portal with the number 1930, or one may log on to cybercrime.gov.in to report an incident immediately, which reduces the chances of the scammer being able to access funds from the complainant. The Indian Cyber Crime Coordination Centre (I4C) under the Ministry of Home Affairs tracks the data and coordinates between states and agencies. The Department of Telecommunications has cut off lakhs of suspicious mobile numbers and devices as well as deactivating scam related WhatsApp accounts. Over 59 lakh suspicious bank accounts have been frozen with the help of the Digital Intelligence Platform, connecting various banks with the police in order to prevent the loss of over ₹1,000 Crores.
The RBI instructs all banks to provide enhanced OTP services, transaction alerts, and fraud detection and monitoring services. According to section 79 of the IT Act, 2000, any intermediary service, upon getting a complaint or notice, is obliged to delete fraudulent or infringing content.
As mentioned before, almost half of the scam activities are routed through Southeast Asian countries like Cambodia, Myanmar, Laos, and others, hence cooperation between nations is a vital step, albeit a slow one. Companies take part in cyber security as well, with AI detecting scam patterns and targeting them before they reach the end-user. WhatsApp also scans links for malicious content. We cannot deny that enforcement is a problem, and although steps have been taken to combat the issue, the number of cases reported still outnumber those addressed.

With enforcement struggling to keep pace, is personal awareness our only option?

Despite technology, government bodies, and companies playing a role in combating cybercrimes, it is essential that we as individuals play our part in protecting ourselves and others. Some precautions one may take are as follows. It is necessary to always confirm any contact, such as a call or message, before responding or giving out personal or financial information, as fraudsters can spoof phone numbers, so it would be best to hang up and contact the official source directly. They must also be wary of any communication that causes panic or urgency such as being informed of bail amounts, account suspension, or detained customs, among others. QR codes must also be checked before scanning, and typing in website URLs instead of scanning QR codes is advised. No bank or police official would ask for an OTP under any circumstances, it is best not to share it. It is always essential to enable multifactor authentication and set a SIM PIN with your telecom provider. Finally, always update applications and software and only download from official app stores. It is also necessary to educate senior family members or acquaintances, as they are common targets for fraudsters.

When one simple precaution can save an individual from losing their life savings, what is it that stops us from practicing caution?

In this day and age, we must remember the balance between a convenient life and the amount of risk we expose ourselves to. It is important to be aware that regardless of age, gender, and knowledge, everyone is susceptible to online frauds and scams. Individuals, bodies, and technology all play a part in this collective effort. As our digital world advances, it is only through awareness that we protect ourselves, not from falling prey, but from being an easy target.

Arpitha R Bharadwaj

BMS College of Law