NEW DELHI: Data compiled by the Indian Cyber Crime Coordination Centre (I4C) under the Union Ministry of Home Affairs (MHA) has revealed a significant shift in the tactics of cybercriminals, with fake trading applications and websites emerging as the primary tools used to defraud unsuspecting investors.
The analysis also showed that Maharashtra, Uttar Pradesh and Rajasthan have become major hubs for mule bank accounts used to siphon off illicit funds.
According to officials familiar with the development, nearly 70 per cent of total financial losses from cybercrime are now linked to fraudulent trading and investment platforms. In contrast, cases involving so-called “digital arrests”, where fraudsters impersonate law enforcement officials to extort money, have witnessed a decline, they added.
A senior official said that a year-long analysis by the I4C indicated that cybercriminals are increasingly exploiting people's aspirations of quick financial gains through share market-linked schemes.
“Greed and fear are two of the emotions fraudsters play on. Sustained awareness campaigns have led to a reduction in digital arrest cases. However, fake trading apps and websites connected to stock market investments have become the new modus operandi,” he said.
To counter the growing threat, the MHA has operationalised the Cyber Fraud Mitigation Centre (CFMC), bringing multiple stakeholders under one roof to strengthen coordination and response. Police personnel from 16 states and Union Territories (UTs) are currently stationed at the centre, working collectively to track complaints lodged by victims and initiate swift action. More states and UTs are expected to join the initiative in the coming days.
The CFMC facilitates real-time coordination among telecom service providers, aggregators, banks and online payment wallets to prevent stolen funds from exiting the formal financial system. E-commerce platforms have also been integrated into the mechanism after data revealed that 53 per cent of cyber fraud proceeds are being withdrawn through cheques and purchases on e-commerce sites.
The officials stressed that timely reporting is critical to improving recovery rates. “The golden hour is most crucial. The success rate rises significantly if authorities are informed within an hour of the fraud. In cases of digital arrest scams that continue over several days, the challenge becomes bigger. We urge victims to immediately dial 1930 or register complaints at cybercrime.gov.in,” a senior official said.
The impact of such scams was underscored by a recent case involving a Punjab Police officer who allegedly took his own life after being duped in an online trading fraud. Local police recovered a 12-page handwritten note in which he claimed he had been cheated of Rs 8.1 crore through a sophisticated scheme operated via WhatsApp and Telegram under the name ‘F-777 DBS Wealth Equity Research Group’. The platform falsely claimed regulatory approvals and affiliations with reputed financial institutions.
Investigators say cybercriminals typically create multiple transaction layers to evade law enforcement scrutiny. A common tactic involves the use of mule accounts to receive, transfer and launder illicit funds.
Though Nuh in Haryana, once considered a cybercrime hotspot, has seen a decline in activity, Haryana remains among the top 10 states linked to mule accounts. Other states and territories on the list include Delhi, the Union Territory of Dadra and Nagar Haveli and Daman and Diu, Karnataka, Madhya Pradesh, Bihar and Tamil Nadu.
Notably, Jharkhand — once infamous for the Jamtara cyber fraud module — no longer figures among the top 10, indicating a shift in the location of cybercrime operations.