“Your father is under arrest. But we think he is innocent and got caught wrongly. If you don’t believe me, I can put him on call,” said a fraudster who impersonated himself as a police commissioner on a WhatsApp call. He then threatened this writers to report the case to media if he wasn’t paid Rs 50,000 on call. However, what the caller didn’t know was that he was calling a journalist. Having understood that something is amiss, this writer got to bottom of it. A thorough investigation revealed it to be ‘digital arrest scam’. This is just an example. The year 2024 saw various sectors being hit by a wave of frauds enabled by misuse of technology and driven by individuals exploiting system vulnerabilities. Here are some of the scams that came to the fore in 2024.
Digital arrest
As mentioned in the beginning, digital arrest is one of the most prevalently spread cyber frauds of this year. Between January and April 2024, Indians lost a staggering ₹120.3 crore to “digital arrest” fraud, according to data from the Indian Cybercrime Coordination Centre as reported in October.
In these scams, criminals contact victims via phone or video calls, creating a scenario where the target believes they are implicated in a legal case. This tactic is designed to coerce victims into paying money under the threat of jail time, as explained by cybersecurity experts.
Medical
Fraudsters preyed on individuals by selling policies that promised comprehensive protection. However, when policyholders filed claims, these so-called insurers vanished, leaving victims to face significant financial and emotional turmoil. The lack of stringent regulatory oversight in the insurance sector contributed to the proliferation of these scams.
As Col (Dr) Rajendra P Vennam, CEO and CTO of Drucare, observed, “The most disheartening pattern that emerged was the high amount of insurance fraud. These individuals would sell policies with the promise of comprehensive health protection while these individuals would vanish after the claim had been filed. In unison, the rapid use of telemedicine also led to an alarming rise of phishing scams where cyber criminals infected scanners posing as doctors that needed sensitive information regarding patients.”
Another worrying concern was the increase of fake drugs being sold online which is blamed on the unethical vendors who took the aid of e-commerce sites while also utilizing advertisements on social media. This was detrimental to peoples health especially in places where access to the required medications was difficult, Dr Vennam noted.
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Delivery
As the reliance on delivery apps grew, scammers exploited these platforms to deceive users. Fake delivery agents or apps asked customers for additional payments under the pretense of service charges or rectifying “failed transactions.” In some cases, users unknowingly shared sensitive payment information, leading to financial losses.
Scams involving QR codes have become increasingly prevalent, as seen in a recent incident where a police officer lost ₹2.3 lakh after scanning a fraudulent QR code at a bakery. A new scam involving DHL package delivery has also raised concerns, with suspicious notifications circulating on platforms like WhatsApp and X (formerly Twitter).
Citizens reported receiving a notice at their doorstep prompting them to scan a QR code to “re-arrange delivery” by following simple steps. While DHL confirmed that this notice is legitimate, cybersecurity experts warn that QR codes can easily be weaponized by scammers to direct users to malicious links, potentially leading to significant financial losses.
Airport lounge access
Travellers were targeted with fraudulent offers of premium lounge access at airports. Victims paid for exclusive memberships or passes only to find these services didn’t exist. Scammers took advantage of unsuspecting flyers, particularly during peak travel seasons, by using fake websites and phishing emails that mimicked legitimate airport services.
Phishing
The growing use of digital platforms presented a chance for hackers to take advantage of weaknesses. They employed phishing scams to compromise systems and obtain private data by posing as reliable organizations. Under the pretense of valid requests, these frauds frequently entailed tricking people into divulging passwords, bank information, or other personal information. “The rapid use of telemedicine led to an alarming rise of phishing scams,” said Dr. Vennam, “where cybercriminals infected scanners posing as doctors and sought sensitive information.”
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Cryptocurrency
Cryptocurrency remained a hotbed for scams in 2024. Fraudsters lured victims with promises of high returns on investments or exclusive access to new digital currencies. Many fell prey to fake platforms and Ponzi schemes, losing substantial amounts of money in the process. Similarly, bogus investment opportunities—ranging from fake stock tips to non-existent startups—cost individuals their savings.
Manish Tewari, Co-Founder of Spydra Technologies, highlighted that “a significant proportion of the public continued to fall victims to cryptocurrency scams including fake ICOs, counterfeit crypto trading platforms, and AI construction ‘investment’ planners who tricked the masses into losing millions of dollars.”
Banking
Banking fraud surged in 2024, with scammers employing tactics like impersonating bank officials to trick individuals into sharing sensitive information. Using advanced technology, these fraudsters accessed accounts, drained funds, or misdirected transactions to their own accounts. Fake loan offers and fraudulent SMS messages posing as official alerts also victimized many.
Technology
2024 saw a disturbing rise in the use of deepfake technology, where AI-generated synthetic audios and videos impersonated key figures. These were used to commit financial fraud, identity theft, and spread misinformation. “Deepfake technology was employed to impersonate companies and acquire sensitive information, alter stock prices, or breach security measures, enabling fraud on an unprecedented scale,” explained Tewari. Furthermore, AI-enabled voice cloning rip-offs became prevalent, with scammers replicating voices to demand payments or extract sensitive information from victims.
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Employment scams
With job seekers increasingly turning to online platforms, scammers exploited this trend by posting fake job advertisements. Victims were often asked to pay for training, equipment, or background checks, only to find out the job did not exist.
High-profile financial scams
India witnessed several major scandals, including the Mahadev App Betting Scam. Promoters Saurabh Chandrakar and Ravi Uppal laundered proceeds through benami accounts and hawala channels, defrauding an estimated INR 15,000 crores. The ED’s investigation seized assets worth INR 417 crore, exposing weaknesses in digital financial monitoring. “India’s legal and regulatory frameworks were tested by these scams, calling for comprehensive reforms and stronger oversight,” noted Ayush Jindal, Advocate, Supreme Court. Other notable incidents included the Valmiki Corporation Scam and the rise of “Digital Arrest” scams, where fraudsters impersonated law enforcement to extort money.
