Sources claim that India intends to restrict suspicious bank accounts in order to combat cybercrime.

The measures are announced as internal Indian government data reveals that since 2021, people have lost around $1.26 billion in banking institution funds due to cyber crime.

Sources claim that India intends to restrict suspicious bank accounts in order to combat cybercrime.

The measures are announced as internal Indian government data reveals that since 2021, people have lost around $1.26 billion in banking institution funds due to cyber crime.

 

In an effort to combat an increase in online crime, the central bank of India is to shortly amend regulations to allow banks to temporarily freeze accounts that they believe are being used for cybercrimes, three people told Reuters.

 

The announcement of the proposals coincides with internal government data revealing that since 2021, people have lost around $1.26 billion in banking institution cash due to cyber theft; according to one source, approximately 4,000 new bogus accounts are formed daily.

 

Every day, calls attempting to defraud tens of thousands of Indians are made. The fraudsters want to gain access to their wallets and bank accounts in order to take money from them and deposit it into their own accounts.

 

Three government sources who are familiar with the Reserve Bank of India's (RBI) thinking indicated that the regulator will likely allow banks to suspend these accounts in retaliation, sparing victims from having to first file police complaints.

 

In response to Reuters' emails for comment, India's central bank, finance ministry, and home ministry did not immediately reply.

 

The sources claimed that although criminals can empty accounts in a matter of minutes, banks no longer freeze accounts until the police file a crime report—a process that can take days depending on the volume of crimes that law enforcement has to deal with.

 

According to both government sources, the bans would target accounts that are often used improperly to transfer money obtained from cybercrime.

 

According to one of the government sources, the banking regulator will modify its rules for banks in light of data from the Indian Cybercrime Coordination Centre, the home ministry's cyberfraud combating organization.

 

According to agency statistics, 250,000 accounts that were used to siphon off cash have been stopped by the government in the last three months, according to one of the government sources.

 

The organization gathers information on mobile connections, electronic devices, bank accounts that have been exploited, and criminals on a platform that banks, law enforcement, and telecom companies can access.

However, thousands of these fraudulent accounts continue to run without consequence because banks and authorities are powerless to intervene in the event that no police reports are filed, according to a government source.

 

One of the government sources claims that the names and personal data of dishonest account holders will be used to identify and close more accounts held with other banks.

 

News source:

https://www.rappler.com/world/south-central-asia/india-plans-curbs-suspect-bank-accounts-fight-cyber-fraud/