ABSTRACT

This research paper deals with the modus operandi in financial cybercrime in which the main statement of problem is the identification of modus operandi presents significant challenges for investigators even in conventional crimes, but these difficulties are substantially magnified in cybercrime investigations. The digital nature of cybercrimes creates a fundamentally different landscape compared to traditional criminal activities, making pattern recognition and methodology analysis considerably more complex. While conventional crimes leave physical evidence and spatial patterns, cybercrimes often cross jurisdictional boundaries, utilize sophisticated technical approaches, and can be executed through layers of anonymization—all factors that complicate the investigator’s ability to establish clear operational signatures of perpetrators.

This paper deals with the analysis of modus operandi in different types of financial cybercrime through various case studies. Also, it contains how the judiciary dealt with this modern problem and what laws are available in the Indian legal system to curb this problem. Some measures are provided through which people can save themselves from financial cybercrime.

In conclusion, the paper affirms that digital forensics is indispensable in contemporary law enforcement and cybersecurity, and calls for further advancements in forensic tools and, legal frameworks to effectively combat digital crimes in the future.

INTRODUCTION

The NCRB maintained information regarding certain categories of fraud for cybercrime such as credit/debit cards, ATMs, online banking frauds, OTP frauds and others. As per the data published by the NCRB, details of cases registered under fraud for cybercrimes (involving communication devices as medium/target) for the period of 2022 is as under[1]: –

Cases Registered under Fraud for Cyber Crimes: –

Credit/Debit cards	1665
ATMs	1690
Online Banking frauds	6491
OTP frauds	2910
Others	4714
Total	17470

The use of the internet in India is growing rapidly. According to a recent Telecom Regulatory Authority of India (TRAI) survey, currently we have 971.50 million internet subscribers.[2] The rapid expansion of internet access, while offering cyber citizens diverse opportunities across entertainment, education, and other domains, has simultaneously led to an increase in cybercrime, with technologically adept criminals creating novel security challenges. According to the findings of survey on Economic Crime in India in Global Economic Crime Survey 2024, about 59 per cent of Indian organisations faced financial or economic fraud over the past 24 months, an 18 per cent higher than the global average of 41 per cent and marks a 7 per cent increase compared to India’s 2022 survey results.[3]

Recent cyberattacks on multinational companies and financial institutions highlight the growing threat of cybercrime to organizations, with more businesses falling victim to these attacks. This surge can be attributed to the increasing adoption of e-business, internet usage, and e-commerce.[4] Financial cybercrimes, which include cheating, credit card fraud, money laundering, forgery, and online investment scams, are subject to penalties under both the Bhartiya Nyaya Sanhita (BNS) and Information Technology (IT) Act.

The Price Waterhouse Coopers organization, which deals with the economic crime survey, has defined economic crime in cyber world as “an economic crime committed using computers and the internet. It includes distributing viruses, illegally downloading files, phishing and pharming, and stealing personal information like bank account details. It’s only a cybercrime if a computer, or computers, and the internet play a central role in the crime, and not an incidental one.”[5]

Modus operandi, or the method of committing a crime, is influenced by multiple factors including the technological capabilities of both the criminal and target, the perpetrator’s and victim’s knowledge and habits, as well as the various rules, regulations, and processes that govern both technology use and human behavior.

While technology historically played a minor role in criminal activities, the rise of information and computer technology across all aspects of life has transformed crime significantly. When comparing traditional and cybercrime methods, it’s evident that technology’s capabilities and vulnerabilities have become central to criminal activities in the digital age, with cyberspace essentially serving as a new medium for committing conventional crimes through different means, making cybercrime distinct in its modus operandi from traditional criminal behavior.

[1]Cyber Fraud And Digital Harassment, Ministry of Home Affairs, https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2080186#:~:text=The%20’National%20Cyber%20Crime%20Reporting%20Portal’%20(https://cybercrime.gov.in),on%20cyber%20crimes%20against%20women%20and%20children , (Accessed 13 Feb. 2025).

[2]https://www.trai.gov.in/, Telecom Regulatory Authority of India, (Accessed on 10th February, 2025).

[3]PwC’s Global Economic Crime Survey 2024 — India outlook, PwC, PwC’s Global Economic Crime Survey 2024 – India outlook, (Accessed 13 Feb. 2025).

[4] Prof. R.K. Chaubey, “An Introduction to Cyber Crime and Cyber law”, Kamal Law House, 2012.

[5]Cybercrime: protecting against the growing threat, Global Economic Crime Survey, https://www.pwc.pt/pt/deals/images/2011_global_economic_crime_survey.pdf, (Accessed on 10th February, 2025).