Adv. Puneet Thakur and Associates
Cyber Law in India
Cyber law in India refers to the legal framework governing activities in the digital and online space. It encompasses regulations to address crimes committed using computers, networks, or the internet. The key legislation governing cyber activities in India is the Information Technology Act, 2000 (IT Act), amended in 2008.
The IT Act provides:
Legal recognition of electronic records and digital signatures.
Provisions for data protection, privacy, and cybersecurity.
Penalties for various cybercrimes, including hacking, identity theft, and cyber terrorism.
Guidelines for intermediaries like social media platforms and e-commerce companies
In addition to the IT Act, cybercrimes may attract provisions under the Indian Penal Code (IPC), such as those dealing with cheating, defamation, and criminal intimidation.
Types of Cyber Frauds
Phishing Attacks
Fraudsters send fake emails or messages impersonating legitimate organizations to steal sensitive information like login credentials and financial details.
Identity Theft
Criminals use stolen personal information to commit fraud, such as applying for loans, credit cards, or online purchases in the victim’s name.
Ransomware Attacks
Malware is used to encrypt a victim’s data, with the attacker demanding a ransom for decryption.
Social Media Fraud
Fake profiles and scams involving emotional appeals, blackmail, or spreading misinformation to exploit victims
Cyber Stalking and Harassment
Using digital platforms to harass, intimidate, or stalk individuals.
Cryptocurrency Frauds
CryFraudsters trick victims into investing in fake cryptocurrency schemes or hack wallets for digital assets.
Online Shopping Scams
Victims are duped into paying for products or services that are never delivered or are of substandard quality.
Hacking and Data Breach
Unauthorized access to a computer system or network to steal, alter, or delete sensitive data.
Financial Frauds
Fraudsters steal money through fake bank notifications, UPI scams, or unauthorized credit card transactions.
Job and Lottery Scams
Fraudsters lure victims with fake job offers or lottery wins, asking for payments to process the claims.
Online Extortion and Blackmai
Threatening to release sensitive or compromising information unless a ransom is paid.
Child Exploitation and Cyber Grooming
Exploiting minors through online platforms for illegal or immoral activities.
Legal Remedies Under Cyber Law in India
Lodging a Complaint
Victims of cybercrime can file complaints with:
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• Cyber Crime Cells in various states.
• Online portals like the National Cyber Crime Reporting Portal (www.cybercrime.gov.in).
Jurisdiction
Cybercrime can be reported and prosecuted where the crime originated, where the victim resides, or where the effect of the crime is experienced.
Cyber law is an evolving field, adapting to address new forms of cyber threats and frauds in a rapidly digitizing world. Victims should report incidents promptly and seek legal assistance for timely redressal.
Legal Provisions for Redressal
• Section 43: Penalty for unauthorized access to computer systems.
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• Section 66: Punishment for hacking.
• Section 66C: Penalty for identity theft.
• Section 66D: Punishment for cheating by impersonation using a computer resource.
• Section 67: Penalty for publishing obscene material online.
• Section 67B: Punishment for material depicting children in sexually explicit acts.
Role of Intermediaries
Intermediaries like social media platforms are mandated to assist in investigations and remove unlawful content when notified, under Section 79 of the IT Act
How crypto can land in jail
Cyber fraudsters often exploit the anonymity and decentralized nature of cryptocurrency transactions, particularly through peer-to-peer (P2P) exchanges, to launder or transfer money obtained through fraudulent means. Below is an explanation of how this happens, followed by an illustration:
Cyber crime and p2p transactions
Acquisition of Funds
Fraudsters obtain funds through illegal means, such as phishing, hacking, or stealing credentials to access victims’ accounts.
Baiting an Innocent Seller
A fraudster approaches a legitimate seller of cryptocurrency and offers to buy crypto, typically at an attractive rate. They pay the seller using money stolen from a victim’s bank account or credit card.
Layering
To obscure the trail further, the fraudster often transfers the purchased crypto through multiple wallets, making it difficult to trace. By the time authorities investigate, the digital asset has been moved or liquidated.
Use of P2P Platforms
They turn to P2P cryptocurrency platforms to convert the stolen fiat currency into digital assets. On these platforms, users trade directly without an intermediary, making it easier for fraudsters to remain anonymous.
Seizure of the Seller’s Account
When the victim notices unauthorized transactions, they report the fraud to their bank or authorities. This triggers an investigation, and the transaction trail often leads to the seller’s account.
The seller, unaware that the money came from illicit sources, becomes a suspect in money laundering or fraud.
Illustration
Fraudulent Transaction
Fraudster hacks into a victim’s bank account and transfers ₹5,00,000 to the seller (Person A) via bank transfer.
Victim Files a Complaint
• The victim notices the unauthorized ₹5,00,000 transaction and files a complaint with the bank.
• The bank reverses the transaction and freezes Person A’s account for receiving fraudulent money.
Legal Consequences
• Both Person A (the seller) and Person B (a subsequent buyer) are investigated for money laundering.
• Person A, despite being unaware of the fraud, struggles to prove their innocence.
P2P Crypto Exchange
• Fraudster contacts Person A on a P2P crypto platform to buy cryptocurrency worth ₹5,00,000.
• Person A receives the amount in their account and transfers the agreed cryptocurrency to the fraudster’s wallet.
Second Layer of Transactions
• The fraudster, meanwhile, has sold or transferred the cryptocurrency to Person B.
• Person B uses the crypto for legitimate purposes but now appears in the chain of transactions linked to fraud.
Precautionary Measures for Sellers
Verify Source of Funds: Ask buyers for proof of fund origin before transacting.
Use Escrow Services: Opt for platforms offering escrow services that hold funds until transactions are verified.
Report Suspicious Activity: If anything seems unusual, report it to the platform or authorities.
Know Your Customer (KYC): Always trade with verified users on trusted platforms.
This scenario highlights the risks of P2P transactions in the absence of adequate checks and balances, making it crucial to stay vigilant while dealing.
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Substantive Law• Substantive criminal law defines various offenses and prescribes punishments for each crime. • The primary legislation is the Bharatiya Nyay Sanhita (BNSS), 2023, which has replaced the Indian Penal Code (IPC). The BNSS categorizes crimes into various offenses such as: • Offenses against the State: Treason, sedition, etc. • Offenses against the Human Body: Murder, assault, kidnapping, etc. • Offenses against Property: Theft, robbery, criminal trespass, etc. • Offenses against Women: Rape, dowry harassment, domestic violence, etc. • Economic Offenses: Fraud, forgery, counterfeiting, etc.
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Procedural Law• Procedural law lays down the rules and processes for investigating crimes, filing cases, conducting trials, and executing sentences. • Key procedural laws in India include: • Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, which replaced the Code of Criminal Procedure (CrPC). • Bharatiya Sakshya Adhiniyam (BSA), 2023, which replaced the Indian Evidence Act, 1872, and governs the admissibility and evaluation of evidence.
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Punishments Under BNSS• Imprisonment (simple or rigorous). • Fines. • Forfeiture of property. • Death penalty (in rarest of rare cases).
Cyber law is an evolving field, adapting to address new forms of cyber threats and frauds in a rapidly digitizing world. Victims should report incidents promptly and seek legal assistance for timely redressal.
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Substantive Law• Substantive criminal law defines various offenses and prescribes punishments for each crime. • The primary legislation is the Bharatiya Nyay Sanhita (BNSS), 2023, which has replaced the Indian Penal Code (IPC). The BNSS categorizes crimes into various offenses such as: • Offenses against the State: Treason, sedition, etc. • Offenses against the Human Body: Murder, assault, kidnapping, etc. • Offenses against Property: Theft, robbery, criminal trespass, etc. • Offenses against Women: Rape, dowry harassment, domestic violence, etc. • Economic Offenses: Fraud, forgery, counterfeiting, etc.
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Procedural Law• Procedural law lays down the rules and processes for investigating crimes, filing cases, conducting trials, and executing sentences. • Key procedural laws in India include: • Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, which replaced the Code of Criminal Procedure (CrPC). • Bharatiya Sakshya Adhiniyam (BSA), 2023, which replaced the Indian Evidence Act, 1872, and governs the admissibility and evaluation of evidence.
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Punishments Under BNSS• Imprisonment (simple or rigorous). • Fines. • Forfeiture of property. • Death penalty (in rarest of rare cases).
