Hyderabad: In an alarming situation for the cyber crime investigators, a new wave of cybercrime is sweeping across India, orchestrated by Chinese gangs operating in the shadows. While they remain unseen, their reach is extensive, and their profits are massive. Investigations have revealed a sophisticated network of fraud and cryptocurrency conversion, these gangs are funneling crores of rupees abroad, leaving investigating agencies unable to trace their activities.
Despite being masterminded by Chinese criminals, these gangs are too clever not to leave any trace of their operations. By converting stolen money into cryptocurrency and moving it overseas, they are making it difficult for law enforcement agencies to track their illicit activities. The recent investigations have uncovered that these operations are part of a larger cybercrime racket linked to the 'Golden Triangle', a region bordering Laos, Myanmar, and Thailand.
Luring Job Seekers
The modus operandi of these gangs starts with luring unsuspecting young people into their traps. Job advertisements for call center or data entry roles offering attractive salaries are posted on social media, targeting individuals seeking employment. As soon as these victims, mostly young people, land at airports in the 'Golden Triangle,' they are met by gang members, who seize their passports and take them to remote locations.
Once there, the victims are trained for 15 days in cybercrime activities. They are taught various online fraud techniques and pressured into committing cyber crimes. If they refuse, they are threatened and tortured. Only those who manage to contact the Indian Embassy have been able to escape.
Money Laundering and Cryptocurrency
The money swindled from victims through online scams is initially deposited into local bank accounts. From there, it is transferred through multiple accounts to confuse investigators. The mules, small-time individuals who open accounts in their names for commissions, are often arrested during police investigations. These mules are unaware of the larger scheme and are used to conceal the operations of the gangs.
Two days ago, 27 such mules were arrested by the Telangana Cyber Security Bureau in Rajasthan. However, these arrests only scratch the surface of a much larger operation. The real masterminds remain elusive, using cryptocurrency exchanges to convert the stolen money and transfer it to foreign accounts, further complicating the efforts of investigating agencies.
Startling Statistics from I4C
According to the Indian Cyber Crime Coordination Center (I4C), the scale of the problem is enormous. In the first four months of this year alone, authorities seized 3.25 lakh mule accounts. Additionally, over 3,000 URLs and 595 apps were blocked, and 5.3 lakh SIM cards and 80,848 IMEI numbers were suspended as part of the crackdown.
The National Cybercrime Reporting Portal (NCRP) receives an average of 7,000 complaints daily, with over 85 percent related to online financial fraud. The sheer volume of complaints highlights the growing threat posed by these cyber gangs, particularly those linked to China.
Extent of Financial Losses
In just the first four months of this year, cybercriminals have looted Rs. 7,061.51 crore from unsuspecting victims. Fortunately, quick reporting by some victims during the 'golden hour', the initial hours after fraud occurs, has helped investigative agencies recover Rs. 812.72 crore of the stolen money. However, a significant portion remains untraceable due to the swift transfer of funds into cryptocurrency.
International Impact
These Chinese-led cyber gangs are not confined to India. The problem has extended to other countries in Southeast Asia, including Cambodia, the Philippines, Malaysia, and Singapore. On May 22, Indian embassy officials in Phnom Penh, Cambodia, managed to rescue 360 Indians who were trapped in similar fraud schemes. Those freed reported that nearly 5,000 Indian youths were being forced to commit cybercrimes across the borders of Cambodia and Myanmar.
The Road Ahead
With the ever-evolving nature of cybercrime, especially the rise in cryptocurrency usage to conceal illegal transactions, law enforcement agencies are facing an uphill battle. As these gangs expand their operations across borders, the need for international cooperation has become urgent. The latest revelations by central investigative agencies show just how deep and organized these cybercrime networks have become, and how important it is to address the menace of cyber fraud at its roots.
Read more:
