Cyber frauds in India

There are millions of websites; all hosted on servers abroad, that offer online gambling. In fact, it is believed that many of these websites are actually fronts for money laundering. Cases of hawala transactions and money laundering over the Internet have been reported. Whether these sites have any relationship with drug trafficking is yet to be explored. Recent Indian case about cyber lotto was very interesting. A man called Kola Mohan invented the story of winning the Euro Lottery. He himself created a website and an email address on the Internet with the address 'eurolottery@usa.net.' Whenever accessed, the site would name him as the beneficiary of the 12.5 million pound.After confirmation a telgu newspaper published this as a news. He collected huge sums from the public as well as from some banks for mobilization of the deposits in foreign currency. However, the fraud came to light when a cheque discounted by him with the Andhra Bank for Rs 1.73 million bounced. Mohan had pledged with Andhra Bank the copy of a bond certificate purportedly issued by Midland Bank, Sheffields, London stating that a term deposit of 12.5 million was held in his name.

Intellectual Property crimes

These include software piracy, copyright infringement, trademarks violations, theft of computer source code etc. In other words this is also referred to as cybersquatting. Satyam Vs. Siffy is the most widely known case. Bharti Cellular Ltd. filed a case in the Delhi High Court that some cyber squatters had registered domain names such as barticellular.com and bhartimobile.com with Network solutions under different fictitious names. The court directed Network Solutions not to transfer the domain names in question to any third party and the matter is sub-judice. Similar issues had risen before various High Courts earlier. Yahoo had sued one Akash Arora for use of the domain name ‘Yahooindia.Com’ deceptively similar to its ‘Yahoo.com’. As this case was governed by the Trade Marks Act, 1958, the additional defence taken against Yahoo’s legal action for the interim order was that the Trade Marks Act was applicable only to goods.

Email spoofing

A spoofed email is one that appears to originate from one source but actually has been sent from another source. E.g. Gauri has an e-mail address gauri@indiaforensic.com. Her enemy, Prasad spoofs her e-mail and sends obscene messages to all her acquaintances. Since the e-mails appear to have originated from Gauri, her friends could take offence and relationships could be spoiled for life.

Email spoofing can also cause monetary damage. In an American case, a teenager made millions of dollars by spreading false information about certain companies whose shares he had short sold. This misinformation was spread by sending spoofed emails, purportedly from news agencies like Reuters, to share brokers and investors who were informed that the companies were doing very badly. Even after the truth came out the values of the shares did not go back to the earlier levels and thousands of investors lost a lot of money.

Recently, a branch of the Global Trust Bank experienced a run on the bank. Numerous customers decided to withdraw all their money and close their accounts. It was revealed that someone had sent out spoofed emails to many of the bank’s customers stating that the bank was in very bad shape financially and could close operations at any time. Unfortunately this information proved to be true in the next few days.

But the best example of the email spoofing can be given by the Gujarat Ambuja Executive’s case. Where he pretended to be a girl and cheated the Abu dhabi based NRI for crores by blackmailing tactics.

Forgery

Counterfeit currency notes, postage and revenue stamps, mark sheets etc can be forged using sophisticated computers, printers and scanners.

Outside many colleges across India, one finds touts soliciting the sale of fake mark sheets or even certificates. These are made using computers, and high quality scanners and printers. In fact, this has becoming a booming business involving thousands of Rupees being given to student gangs in exchange for these bogus but authentic looking certificates.Some of the students are caught but this is very rare phenomenon.

Cyber Defamation:

This occurs when defamation takes place with the help of computers and / or the Internet. E.g. someone publishes defamatory matter about someone on a website or sends e-mails containing defamatory information to all of that person’s friends.

India’s first case of cyber defamation was reported when a company’s employee started sending derogatory, defamatory and obscene e-mails about its Managing Director. The e-mails were anonymous and frequent, and were sent to many of their business associates to tarnish the image and goodwill of the company.

The company was able to identify the employee with the help of a private computer expert and moved the Delhi High Court. The court granted an ad-interim injunction and restrained the employee from sending, publishing and transmitting e-mails, which are defamatory or derogatory to the plaintiffs.

Cyber stalking

The Oxford dictionary defines stalking as “pursuing stealthily”. Cyber stalking involves following a person’s movements across the Internet by posting messages (sometimes threatening) on the bulletin boards frequented by the victim, entering the chat-rooms frequented by the victim, constantly bombarding the victim with emails etc.

Ritu Kohli has the dubious distinction of being the first lady to register the cyber stalking case. A friend of her husband gave her telephonic number in the general chat room. The general chatting facility is provided by some websites like MIRC and ICQ. Where person can easily chat without disclosing his true identity. The friend of husband also encouraged this chatters to speak in slang language to Ms. Kohli.

Now, let us examine some of the acts wherein the computer is the target for an unlawful act. It may be noted that in these activities the computer may also be a tool. This kind of activity usually involves sophisticated crimes usually out of the purview of conventional criminal law. Some examples are:

Unauthorized access to computer systems or networks

This activity is commonly referred to as hacking. The Indian law has, however, given a different connotation to the term hacking, so we will not use the term “unauthorized access” interchangeably with the term “hacking”. However, as per Indian law, unauthorized access does occur, if hacking has taken place.

An active hackers’ group, led by one “Dr. Nuker”, who claims to be the founder of Pakistan Hackerz Club, reportedly hacked the websites of the Indian Parliament, Ahmedabad Telephone Exchange, Engineering Export Promotion Council, and United Nations (India).

Theft of information contained in electronic form

This includes information stored in computer hard disks, removable storage media etc.

Email bombing

Email bombing refers to sending a large number of emails to the victim resulting in the victim’s email account (in case of an individual) or mail servers (in case of a company or an email service provider) crashing.

In one case, a foreigner who had been residing in Simla, India for almost thirty years wanted to avail of a scheme introduced by the Simla Housing Board to buy land at lower rates. When he made an application it was rejected on the grounds that the scheme was available only for citizens of India. He decided to take his revenge. Consequently he sent thousands of mails to the Simla Housing Board and repeatedly kept sending e-mails till their servers crashed.

Data diddling

This kind of an attack involves altering raw data just before it is processed by a computer and then changing it back after the processing is completed. Electricity Boards in India have been victims to data diddling programs inserted when private parties were computerizing their systems.

The NDMC Electricity Billing Fraud Case that took place in 1996 is a typical example. The computer network was used for receipt and accounting of electricity bills by the NDMC, Delhi. Collection of money, computerized accounting, record maintenance and remittance in he bank were exclusively left to a private contractor who was a computer professional. He misappropriated huge amount of funds by manipulating data files to show less receipt and bank remittance.

Salami attacks

These attacks are used for the commission of financial crimes. The key here is to make the alteration so insignificant that in a single case it would go completely unnoticed. E.g. a bank employee inserts a program, into the bank’s servers, that deducts a small amount of money (say Rs. 5 a month) from the account of every customer. No account holder will probably notice this unauthorized debit, but the bank employee will make a sizeable amount of money every month.

To cite an example, an employee of a bank in USA was dismissed from his job. Disgruntled at having been supposedly mistreated by his employers the man first introduced a logic bomb into the bank’s systems. Logic bombs are programmes, which get activated on the occurrence of a particular predefined event.

The logic bomb was programmed to take ten cents from all the accounts in the bank and put them into the account of the person whose name was alphabetically the last in the bank’s rosters. Then he went and opened an account in the name of Ziegler. The amount being withdrawn from each of the accounts in the bank was so insignificant that neither any of the account holders nor the bank officials noticed the fault.

It was brought to their notice when a person by the name of Zygler opened his account in that bank. He was surprised to find a sizeable amount of money being transferred into his account every Saturday. Being an honest person, he reported the “mistake” to the bank authorities and the entire scheme was revealed.

Denial of Service attack

This involves flooding a computer resource with more requests than it can handle. This causes the resource (e.g. a web server) to crash thereby denying authorized users the service offered by the resource. Another variation to a typical denial of service attack is known as a Distributed Denial of Service (DDoS) attack wherein the perpetrators are many and are geographically widespread.

It is very difficult to control such attacks. The attack is initiated by sending excessive demands to the victim’s computer(s), exceeding the limit that the victim’s servers can support and making the servers crash. Denial-of-service attacks have had an impressive history having, in the past, brought down websites like Amazon, CNN, Yahoo and eBay!

Virus / worm attacks

Viruses are programs that attach themselves to a computer or a file and then circulate themselves to other files and to other computers on a network. They usually affect the data on a computer, either by altering or deleting it. Worms, unlike viruses do not need the host to attach themselves to. They merely make functional copies of themselves and do this repeatedly till they eat up all the available space on a computer’s memory. The VBS_LOVELETTER virus (better known as the Love Bug or the ILOVEYOU virus) was reportedly written by a Filipino undergraduate.

In May 2000, this deadly virus became the world’s most prevalent virus. It struck one in every five personal computers in the world. When the virus was brought under check the true magnitude of the losses was incomprehensible. Losses incurred during this virus attack were pegged at US $ 10 billion.

VBS_LOVELETTER utilized the addresses in Microsoft Outlook and e-mailed itself to those addresses. The e-mail which was sent out had "ILOVEYOU" in its subject line. The attachment file was named "LOVE-LETTER-FOR-YOU.TXT.vbs". People wary of opening e-mail attachments were conquered by the subject line and those who had some knowledge of viruses, did not notice the tiny .vbs extension and believed the file to be a text file. The message in the e-mail was "kindly check the attached LOVELETTER coming from me".

In addition, the Love Bug also uses the Internet Relay Chat (IRC) for its propagation. It e-mails itself to users in the same channel as the infected user.

VBS_LOVELETTER first selects certain files and then inserts its own code in lieu of the original data contained in the file. This way it creates ever-increasing versions of itself.

Probably the world’s most famous worm was the Internet worm let loose on the Internet by Robert Morris sometime in 1988. The Internet was, then, still in its developing years and this worm, which affected thousands of computers, almost brought its development to a complete halt. It took a team of experts almost three days to get rid of the worm and in the meantime many of the computers had to be disconnected from the network.

Logic bombs

These are event dependent programs. This implies that these programs are created to do something only when a certain event (known as a trigger event) occurs. E.g. even some viruses may be termed logic bombs because they lie dormant all through the year and become active only on a particular date (like the Chernobyl virus).

Trojan attacks

A Trojan as this program is aptly called, is an unauthorized program which functions from inside what seems to be an authorized program, thereby concealing what it is actually doing.

There are many simple ways of installing a Trojan in someone’s computer. To cite an example, two friends Rahul and Mukesh (names changed), had a heated argument over one girl, Radha (name changed) whom they both liked. When the girl, asked to choose, chose Mukesh over Rahul, Rahul decided to get even. On the 14th of February, he sent Mukesh a spoofed e-card, which appeared to have come from Radha’s mail account. The e-card actually contained a Trojan. As soon as Mukesh opened the card, the Trojan was installed on his computer. Rahul now had complete control over Mukesh’s computer and proceeded to harass him thoroughly.

Internet time theft

This connotes the usage by an unauthorized person of the Internet hours paid for by another person. In May 2000, the economic offences wing, IPR section crime branch of Delhi police registered its first case involving theft of Internet hours. In this case, the accused, Mukesh Gupta an engineer with Nicom System (p) Ltd. was sent to the residence of the complainant to activate his Internet connection. However, the accused used Col. Bajwa’s login name and password from various places causing wrongful loss of 100 hours to Col. Bajwa. Delhi police arrested the accused for theft of Internet time.

On further inquiry in the case, it was found that Krishan Kumar, son of an ex army officer, working as senior executive in M/s Highpoint Tours & Travels had used Col Bajwa’s login and passwords as many as 207 times from his residence and twice from his office. He confessed that Shashi Nagpal, from whom he had purchased a computer, gave the login and password to him. The police could not believe that time could be stolen. They were not aware of the concept of time-theft at all. Colonel Bajwa’s report was rejected. He decided to approach The Times of India, New Delhi. They, in turn carried a report about the inadequacy of the New Delhi Police in handling cyber crimes. The Commissioner of Police, Delhi then took the case into his own hands and the police under his directions raided and arrested Krishan Kumar under sections 379, 411, 34 of IPC and section 25 of the Indian Telegraph Act. In another case, the Economic Offences Wing of Delhi Police arrested a computer engineer who got hold of the password of an Internet user, accessed the computer and stole 107 hours of Internet time from the other person’s account. He was booked for the crime by a Delhi court during May 2000.

Web jacking

This occurs when someone forcefully takes control of a website (by cracking the password and later changing it). The actual owner of the website does not have any more control over what appears on that website. In a recent incident reported in the USA the owner of a hobby website for children received an e-mail informing her that a group of hackers had gained control over her website. They demanded a ransom of 1 million dollars from her. The owner, a schoolteacher, did not take the threat seriously. She felt that it was just a scare tactic and ignored the e-mail.

It was three days later that she came to know, following many telephone calls from all over the country, that the hackers had web jacked her website. Subsequently, they had altered a portion of the website which was entitled ‘How to have fun with goldfish’. In all the places where it had been mentioned, they had replaced the word ‘goldfish’ with the word ‘piranhas’.

Piranhas are tiny but extremely dangerous flesh-eating fish. Many children had visited the popular website and had believed what the contents of the website suggested. These unfortunate children followed the instructions, tried to play with piranhas, which they bought from pet shops, and were very seriously injured!

Theft of computer system

This type of offence involves the theft of a computer, some part(s) of a computer or a peripheral attached to the computer.

Physically damaging a computer system

This crime is committed by physically damaging a computer or its peripherals.

This is just a list of the known frauds in the cyber world.The unknown frauds might be far ahead of these since the lawbreakers are always onestep ahead of lawmakers.

info@indiaforensic.com

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