Citizen Financial Cyber Fraud Reporting and Management System (CFCFRMS) registered around 1.1 million financial cyber fraud cases in 2023 | Current Affairs | Vision IAS
News Today Logo

Citizen Financial Cyber Fraud Reporting and Management System (CFCFRMS) registered around 1.1 million financial cyber fraud cases in 2023

Posted 08 Feb 2024

Updated 16 Mar 2024

2 min read

 

  • 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

  • National Cyber Crime Reporting Portal and Toll-free Helpline Number ‘1930’
  • CSIRT-Fin (Computer Security Incident Response Team-Finance Sector) under CERT-IN
  • Advisories and regulations by RBI for cyber security in banking sector
  • Restrictions on cloning of phone SIM cards 
  • Tags :
  • Cyber Security
  • cyber financial fraud
Watch News Today