Lok Sabha Question No. 2287 (UNSTARRED), answered on 2017-03-15
Subject: Global Fraud and Risk Survey
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: VIJAY KUMAR S.R., T. RADHAKRISHNAN, GAJANAN CHANDRAKANT KIRTIKAR, SUDHEER GUPTA, KUNWAR HARIBANSH SINGH, SUNIL BALIRAM GAIKWAD, ASHOK SHANKARRAO CHAVAN

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED QUESTION NO. 2287

TO BE ANSWERED ON: 15.03.2017

## GLOBAL FRAUD AND RISK SURVEY

## 2287    SHRI  S.R.  VIJAYAKUMAR:    SHRI  T.  RADHAKRISHNAN:    SHRI  GAJANAN KIRTIKAR:  SHRI SUDHEER GUPTA:  KUNWAR HARIBANSH SINGH: DR. SUNIL BALIRAM GAIKWAD:  SHRI ASHOK SHANKARRAO CHAVAN:

Will the Minister of Electronics & Information Technology be pleased to state:-

- (a) whether  according  to  the  'Global  Fraud  and  Risk  Survey  for  2016',  one  out  of  five  top executives  of  global  corporations  have  expressed  their  apprehensions  over  investing  in India  due  to  concerns  over  fraudulent  practices  and  cyber  security  lapses  and  if  so,  the details thereof along with other issues raised in the survey;
- (b) the  number of cyber  fraud  incidents  reported  during  each  of  the  last  three  years  and  the current  year  along  with  the  action  taken/being  taken  by  the  Government  in  this  regard, State/UT-wise;
- (c) whether there are large number of fake accounts on various e-mail and social networking sites which are being used for committing cyber fraud/crime;
- (d) if so, the details thereof along with the action taken/being taken by the Government in this regard; and
- (e) the corrective measures taken/being taken by the Government on the findings of the Global Fraud and Risk Survey, 2016?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI P.P. CHAUDHARY)

(a)  :  There  have  been  media  reports  based  on  the  'Global  Fraud  and  Risk  Survey  for  2016' indicating one out of five top executives of global corporations have expressed their apprehensions  over  investing  in  India  due  to  concerns  over  fraudulent  practices  and  cyber security lapses.  However, the report has highlighted reduction in cyber fraud and cyber security incidents cases in past twelve months in India.

(b) and (e) : National Crime Records Bureau (NCRB) collects and maintains statistical data of police recorded cognizable crimes including cyber frauds and cyber crimes from 35 States /Union Territories. As per the data maintained by NCRB, a total of 1600 and 3383 cases were registered under cyber fraud using computer as medium/target during the year 2014 and 2015. Data for the year 2016 is under collection. State/UT-wise data during 2014-2015 is enclosed as Annexure-I.

Government has  taken  various  steps  in  the  form  of  legal  framework,  awareness,  training,  and implementation of best practices to address issues related to cyber crimes including risk identified in the report.  These include:

- (i) The  IT  Act,  2000  provides  a  comprehensive  legal  framework  to  address  the  issues connected with cyber crime, cyber attacks and security breaches of information technology infrastructure.
- (ii) Ministry  of  Electronics  &  Information  Technology  (MeitY)  has  recently  notified  the scheme  for  evaluating  any  Department,  body  or  agency  of  the  Central  Government  or  a State Government to notify them as Examiner of Electronic Evidence under section 79A of IT Act, 2000.
- (iii) Indian  Computer  Emergency  Response  Team  (CERT-In)  issues  alerts  and  advisories regarding latest cyber threats and countermeasures on regular basis.  CERT-In has issued 17 advisories  since  Nov  27,  2016  for  security  safeguards  covering  Point  of  Sale  (POS) machines, Micro ATMs, electronic Wallets, online banking, smart phones, Unified Payment Interface  (UPI),  Unstructured  Supplementary  Service  Data  (USSD),  RuPay,  SIM  cards, wireless  access  points  /  routers,  mobile  banking,  cloud  and  Aadhaar  Enabled  Payment System  (AEPS).  Advisory  has  also  been  sent  by  CERT-In  to  RBI,  National  Payment Corporation of India Limited (NPCIL) and Payment Card Industry Organizations covering precautions to be taken to avoid similar attacks as those that occurred recently with credit / debit cards.
- (iv) CERT-In  is  conducting  cyber  security  trainings  for  IT  /  cyber  security  professionals including Chief Information Security Officers (CISOs) of Government and critical sector organisations. 18 such training programs were conducted covering 580 participants during the year 2016. In addition 2 workshops on security of digital payments systems have been conducted for stakeholder organisations covering 110 participants.
- (v) Cyber Crime Cells have been set up in all States and Union Territories for reporting and investigation of cyber crime cases.
- (vi) With respect to the banking sector, in order to focus more attention on IT related matters, Reserve Bank of India (RBI) has taken various steps which include :
- -RBI  has  set  up  a  Cyber  Security  and  IT  Examination  (CSITE)  cell  within  its Department of Banking Supervision in 2015.
- -The Bank has issued a comprehensive circular on Cyber Security Framework in Banks on June 2, 2016 covering best practices pertaining to various aspects of cyber security.
- -RBI  carries  out  IT  Examination  of  banks  separately  from  the  regular  financial examination  of  banks  since    last  year.      The  outcome  reports  with  special  focus  on cyber security have been issued to the banks for remedial action.
- -RBI has also set up Cyber Crisis Management Group to address any major incidents reported including suggesting ways to respond to and recover  from the incidents.
- -Department of Banking Supervision under RBI also conducts cyber security preparedness testing among banks on the basis of hypothetical scenarios with the help of CERT-In.
- -RBI also has set up an IT subsidiary, which would focus, among other things, on cyber security within RBI as well as in regulated entities.
- -RBI  has  issued  circular  on  09 th December  2016  on    Security  and  Risk  mitigation measure for all authorised entities / banks issuing Prepaid Payment Instruments (PPI) in the country.
- -In  addition,  RBI  issues  Circulars/advisories  to  all  Commercial  Banks  on  phishing attacks and preventive / detective measures to tackle phishing attacks.

(c) and (d) : The cyberspace is virtual, borderless and anonymous. Anyone can open account in any name including fake name from any part of the world. Any user with an email address is allowed  to  register  with  social  networking  sites  with  any  name.  No  background  information check is performed by the social networking sites, which occasionally leads to creation of fake account by miscreants for committing crimes. Law enforcement agencies take necessary action to deal with cyber fraud/crime including shutting down fake accounts.

Government  does  not  regulate  content  appearing  on  social  networking  sites.    Information Technology  (IT)  Act,  2000  has  provisions  for  removal  of  objectionable  online  content.  The Information Technology  (Intermediary Guidelines) Rules 2011 notified under section 79 of the IT Act require that the Intermediaries shall observe due diligence while discharging their duties and shall inform the users of computer resources not to host, display, upload, modify, publish, transmit,  update  or  share  any  information  that  is  harmful,  objectionable,  affects  minors  or  is unlawful in anyway.

Further,  section  69A  of    IT  Act,  2000  provides  for  blocking  for  access  of  information  under specific  conditions  related  to  interest  of  Sovereignty  and  Integrity  of  India,  defence  of  India, security  of  the  State,  friendly  relations  with  foreign  States  or  public  order  or  for  preventing incitement to the commission of any cognizable offence relating to above.

********

| Cases   | and                     | Persons Convicted under   | Persons Convicted under   | Persons Convicted under   | Persons Convicted under   | Persons Convicted under   | Persons Convicted under   | Chargesheeted(CS), Persons Chargesheeted(PCS),   | Chargesheeted(CS), Persons Chargesheeted(PCS),   | Chargesheeted(CS), Persons Chargesheeted(PCS),   | Chargesheeted(CS), Persons Chargesheeted(PCS),   | Chargesheeted(CS), Persons Chargesheeted(PCS),   | Chargesheeted(CS), Persons Chargesheeted(PCS),   |
|---------|-------------------------|---------------------------|---------------------------|---------------------------|---------------------------|---------------------------|---------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|
| SL      |                         | CR                        | PAR                       | 2014 CCS*                 | PCS*                      | CON*                      | PCV*                      | CR                                               | PAR                                              | CCS*                                             | 2015 PCS*                                        | CON*                                             | PCV*                                             |
| 1       | STATE/UT Andhra Pradesh | 79                        | 58                        | 6                         | 8                         | 0                         | 0                         | 105                                              | 83                                               | 13                                               | 16                                               | 0                                                | 0                                                |
| 2       | Arunachal Pradesh       | 4                         | 0                         | 0                         | 0                         | 0                         | 0                         | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                |
| 3       | Assam                   | 0                         | 0                         | 0                         | 0                         | 0                         | 0                         | 7                                                | 3                                                | 0                                                | 0                                                | 0                                                | 0                                                |
| 4       | Bihar                   | 0                         | 0                         | 0                         | 0                         | 0                         | 0                         | 28                                               | 1317                                             | 5                                                | 13                                               | 0                                                | 0                                                |
| 5       | Chhattisgarh            | 14                        | 6                         | 4                         | 6                         | 0                         | 0                         | 14                                               | 13                                               | 8                                                | 10                                               | 0                                                | 0                                                |
| 6       | Goa                     | 18                        | 1                         | 0                         | 0                         | 1                         | 2                         | 4                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                |
| 7       | Gujarat                 | 74                        | 20                        | 7                         | 11                        | 0                         | 0                         | 97                                               | 34                                               | 21                                               | 40                                               | 0                                                | 0                                                |
| 8       | Haryana                 | 7                         | 7                         | 3                         | 7                         | 0                         | 0                         | 49                                               | 25                                               | 8                                                | 20                                               | 0                                                | 0                                                |
| 9       | Himachal Pradesh        | 0                         | 0                         | 0                         | 0                         | 0                         | 0                         | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                |
| 10      | Jammu & Kashmir         | 0                         | 0                         | 0                         | 0                         | 0                         | 0                         | 1                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                |
| 11      | Jharkhand               | 0                         | 0                         | 0                         | 0                         | 0                         | 0                         | 4                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                |
| 12      | Karnataka               | 52                        | 8                         | 3                         | 4                         | 0                         | 0                         | 429                                              | 26                                               | 10                                               | 11                                               | 0                                                | 0                                                |
| 13      | Kerala                  | 47                        | 17                        | 6                         | 7                         | 1                         | 1                         | 52                                               | 16                                               | 15                                               | 18                                               | 0                                                | 0                                                |
| 14      | Madhya Pradesh          | 59                        | 55                        | 48                        | 55                        | 0                         | 0                         | 46                                               | 28                                               | 16                                               | 25                                               | 0                                                | 0                                                |
| 15      | Maharashtra             | 738                       | 206                       | 105                       | 157                       | 1                         | 1                         | 1328                                             | 273                                              | 98                                               | 205                                              | 0                                                | 0                                                |
| 16      | Manipur                 | 3                         | 0                         | 0                         | 0                         | 0                         | 0                         | 2                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                |
| 17      | Meghalaya               | 20                        | 4                         | 4                         | 4                         | 0                         | 0                         | 21                                               | 3                                                | 2                                                | 2                                                | 0                                                | 0                                                |
| 18      | Mizoram                 | 3                         | 0                         | 0                         | 0                         | 0                         | 0                         | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                |
| 19      | Nagaland                | 0                         | 0                         | 0                         | 0                         | 0                         | 0                         | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                |
| 20      | Odisha                  | 28                        | 4                         | 4                         | 4                         | 0                         | 0                         | 233                                              | 44                                               | 20                                               | 38                                               | 0                                                | 0                                                |
| 21      | Punjab                  | 12                        | 8                         | 1                         | 1                         | 0                         | 0                         | 3                                                | 5                                                | 1                                                | 1                                                | 0                                                | 0                                                |
| 22      | Rajasthan               | 121                       | 22                        | 13                        | 22                        | 0                         | 0                         | 218                                              | 49                                               | 30                                               | 49                                               | 0                                                | 0                                                |
| 23      | Sikkim                  | 0                         | 0                         | 0                         | 0                         | 0                         | 0                         | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                | 0                                                |
| 24      | Tamil Nadu              | 46                        | 9                         | 2                         | 2                         | 0                         | 0                         | 22                                               | 14                                               | 16                                               | 19                                               | 0                                                | 0                                                |
| 25      | Telangana               | 28                        | 10                        | 3                         | 3                         | 1                         | 1                         | 408                                              | 265                                              | 18                                               | 22                                               | 0                                                | 0                                                |
| 26      | Tripura                 | 0                         | 0                         | 0                         | 0                         | 0                         | 0                         | 4                                                | 3                                                | 0                                                | 0                                                | 0                                                | 0                                                |
| 27      | Uttar Pradesh           | 134                       | 72                        | 38                        |                           |                           |                           |                                                  |                                                  |                                                  | 115                                              | 9                                                | 13                                               |
| 28      | Uttarakhand             | 0                         | 0                         | 0                         | 41                        | 0                         | 0                         | 110                                              | 139                                              | 74 0                                             | 0                                                | 0                                                | 0                                                |
| 29      | West Bengal             | 45                        | 25                        | 9                         | 0 9                       | 0 0                       | 0 0                       | 5 69                                             | 2 12                                             | 10                                               | 10                                               | 0                                                | 0                                                |

|    | TOTAL STATE(S)    |   1532 |   532 |   256 |   341 |   4 |   5 |   3259 |   2354 |   365 |   614 |   9 |   13 |
|----|-------------------|--------|-------|-------|-------|-----|-----|--------|--------|-------|-------|-----|------|
| 30 | A & N Islands     |      9 |     3 |     2 |     3 |   0 |   0 |      1 |      1 |     2 |     2 |   0 |    0 |
| 31 | Chandigarh        |     26 |    11 |     7 |     7 |   0 |   0 |     60 |     10 |     6 |     7 |   3 |    3 |
| 32 | D&N Haveli        |      0 |     0 |     0 |     0 |   0 |   0 |      0 |      0 |     0 |     0 |   0 |    0 |
| 33 | Daman & Diu       |      0 |     0 |     0 |     0 |   0 |   0 |      0 |      0 |     0 |     0 |   0 |    0 |
| 34 | Delhi UT          |     33 |     9 |     2 |     2 |   0 |   0 |     63 |     11 |     9 |    10 |   0 |    0 |
| 35 | Lakshadweep       |      0 |     0 |     0 |     0 |   0 |   0 |      0 |      0 |     0 |     0 |   0 |    0 |
| 36 | Puducherry        |      0 |     0 |     0 |     0 |   0 |   0 |      0 |      0 |     0 |     0 |   0 |    0 |
|    | TOTAL UT(S)       |     68 |    23 |    11 |    12 |   0 |   0 |    124 |     22 |    17 |    19 |   3 |    3 |
|    | TOTAL (ALL INDIA) |   1600 |   555 |   267 |   353 |   4 |   5 |   3383 |   2376 |   382 |   633 |  12 |   16 |

Source: Crime in India

'*' Data Colletion since 2014

Note: The data includes heads "Criminal Breach of Trush+Cheating+Computer Related Offences Section 66D+Create/publish/make available Electronic Signature Certificate for fraudulent/unlawful purpose (Section 74))