70 Lakh Mobile Numbers Disconnected for Cybercrime and Financial Frauds

In a significant move to combat digital frauds, the Indian government has disconnected 70 lakh mobile numbers linked to cybercrime or financial frauds. The announcement was made by Financial Services Secretary Vivek Joshi on Tuesday, following a meeting to discuss issues related to financial cyber security and the increasing trend of digital payment fraud.

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Strengthening Systems and Processes

Joshi, who chaired the meeting, emphasized the need for banks to strengthen their systems and processes to prevent and detect cyber fraud. He said that more such meetings would be held in the future, with the next one scheduled for January. The meeting noted that 70 lakh mobile connections involved in cybercrime and financial frauds, reported through digital intelligence platforms, have been disconnected so far. As a result, around Rs 900 crore of defrauded money has been saved, benefiting 3.5 lakh victims.

Addressing Aadhaar Enabled Payment System Frauds

Regarding the recent Aadhaar Enabled Payment System (AEPS) fraud, Joshi stated that states have been asked to investigate the issue and ensure data protection. He also mentioned that discussions were held on standardizing the KYC process for merchants.

Ensuring Better Coordination and Awareness

The meeting, chaired by the Financial Services Secretary, deliberated on the need for better coordination among various agencies to check cyber fraud. Joshi stressed the importance of creating awareness about cyber fraud in society to protect gullible customers from being duped.

Presentation on Digital Payment Frauds

The Indian Cyber Crime Co-ordination Center (I4C), Ministry of Home Affairs, made a presentation on the latest statistics of digital payment frauds reported in the National Cyber Crime Reporting Portal (NCRP). The presentation highlighted various sources of these financial frauds, the modus operandi adopted by fraudsters, and the challenges faced in countering cybercrimes.

Proactive Risk Monitoring Strategy

Representatives from the State Bank of India (SBI) shared their Proactive Risk Monitoring (PRM) strategy, which has been implemented to mitigate fraud risks. Additionally, representatives from PayTM and Razorpay shared their best practices in fraud prevention.

Attended by Senior Officials

The meeting was attended by senior officials from the Department of Economic Affairs, Department of Revenue, Department of Telecom, Ministry of Electronics and Information Technology (MeitY), Telecom Regulatory Authority of India, and National Payments Corporation of India. The participants took stock of the preparedness of banks and other financial institutions in tackling cyber security challenges in the financial services sector and discussed a focused approach to mitigate cyber-attacks and frauds.

Tackling Mule Accounts and Response Time

Some of the specific issues deliberated in the meeting included strategies to tackle the menace of mule accounts by banks and improving the response time in handling alerts on online financial frauds received from different agencies. The appointment of regional/state-level nodal officers by banks and financial institutions to cater to the requirements of law enforcement agencies was also discussed.

Whitelisting of Digital Lending Apps

The meeting also focused on the whitelisting of digital lending apps through consultation with relevant stakeholders. This assumes significance in light of recent digital fraud incidents witnessed by UCO Bank and Bank of Baroda.

The government's disconnection of 70 lakh mobile numbers involved in cybercrime and financial frauds is a significant step in curbing digital fraud in India. The meeting, attended by senior officials and representatives from various financial institutions, reflects the government's commitment to strengthening the financial cyber security infrastructure and protecting citizens from online fraud. By raising awareness, improving coordination, and implementing robust systems and processes, India can effectively combat the growing threat of cybercrime and safeguard its digital financial ecosystem.