- CFCFRMS has been setup under the Indian Cyber Crime Coordination Centre (I4C) for immediate reporting of financial frauds and to stop siphoning off funds by the fraudsters.
- I4C has been established by Ministry of Home Affairs to provide an ecosystem for Law Enforcement Agencies for dealing with Cybercrime and act as a nodal point.
- Financial Cyber Frauds are intentional and illegal act of deception to deprive someone of their money using the digital means.
- These involve debit/credit card frauds, internet banking and UPI related frauds, and ransomware attacks etc.
- Reasons for rise in cyber financial frauds:
- Increase in adoption of digital payments combined with lack of financial literacy.
- Mushrooming of fraudulent apps with ability to capture financial data.
- Use of Dark Patterns (interfaces to trick users into desired behaviour such as availing instant loans) for luring vulnerable consumers.
- Low regulatory compliance level by the banking sectors
- Way forward
- Bringing all financial institutions on CFCFRMS
- Whitelisting of digital lending apps
- Setting up of Digital India Trust Agency (DIGITA)
- Bringing new legislation – Banning of Unregulated Lending Activities (BULA) Act
- Building new safeguards for digital financial transactions
India’s Initiatives to curb financial cyber frauds
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