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Cyber Fraud and Its Prevention

Team Lawyered
Team Lawyered
  • May 9, 2023
  • 9 min to read
Cyber Fraud and Its Prevention Lawyered

Defining "Cyber Crimes"

There is no definition of "cyber-crimes" in any law or regulation. Anything having to do with computers, information technology, the internet, and virtual reality is referred to as "cyber" in slang. It follows that "cyber-crimes" are crimes involving computers, information technology, the internet, and virtual reality.

Many statutes and even rules created by different regulators contain laws that punish cybercrimes. Cybercrimes are punished under the Information Technology Act, 2000 ("IT Act") and the Indian Penal Code, 1860 ("IPC"). Unsurprisingly, several clauses in the IPC and the IT Act crossover with one another.

Many of the cybercrimes that are punishable under the IPC and the IT Act share many of the same components and even names. Here are a few illustrations:

Hacking and Data Theft: 

The IT Act's Sections 43 and 66 penalise a variety of actions, including breaking into computer networks, stealing data, introducing and spreading viruses through them, damaging computers, computer networks, or computer programmes, disrupting any computer system or network, denying a legitimate person access to a computer or computer network, and damaging or erasing data stored on computers. The maximum penalty for the aforementioned violations is a fine of up to Rs. 5,00,000 (Rupees five lakh) or imprisonment for up to 3 (three) years or both.

Since section 22 of the IPC states that the term "movable property" is intended to include corporeal property of all descriptions, with the exception of land and things attached to the earth or permanently fastened to anything which is attached to the earth, section 378 of the IPC, which deals with "theft" of movable property, will apply to the theft of any data, whether it occurs online or otherwise. Under section 378 of the IPC, the maximum penalty for stealing is three (three) years in jail, a fine, or both.

Receiving stolen property: 

The act is punishable under Section 66B of the Information Technology Act (IT Act) if it is done dishonestly. According to this clause, the individual who received the stolen goods must have done so dishonestly or had good reason to suspect it was stolen. According to Section 66B of the IT Act, this offence carries a sentence of up to 3 (three) years in prison, a fine of up to Rs. 1,000,000 (Rupees one lakh), or both.

In a similar way to section 66B of the IT Act, section 411 of the IPC also outlines the penalties for dishonestly accepting stolen goods. According to section 411 of the IPC, the maximum sentence for either type of imprisonment is three (three) years, and it can also include a fine or both. Please take note that the IPC does not have a maximum fine cap, which is the only variation between the required penalties.

Identity theft and cheating by personation:

Section 66C of the IT Act specifies the penalty for identity theft and states that anyone who uses another person's electronic signature, password, or other unique identification feature fraudulently or dishonestly faces up to three years in prison and a fine of Rs. 1,000,000 (Rupees one lakh) in addition to their other penalties.

The IT Act's Section 66D outlines the penalties for "cheating by personation by using computer resources" and states that anyone found guilty of engaging in personation fraud using a computer resource or communication device faces up to three years in prison and a fine of Rs. 1,000,000 (Rupees one lakh) in addition to other penalties.

A person who engages in "cheating by personation" is also subject to punishment under Section 419 of the IPC, which stipulates that they may receive a fine, a term of imprisonment of either description that may not exceed three years, or both. A person is considered to have engaged in "cheating by personation" if they purposefully represent themselves or another person as someone other than who they actually are, or if they intentionally replace one person for another.

PREVENTION OF CYBER CRIME

  1. Backup all data, systems, and things to think about.

As a result, data that was previously preserved can help firms recover from an unexpected incident.

  1. Enforce strong security measures and keep them up to date

Pick a firewall that offers protection from viruses, malware, and dishonest hackers. Because of this, firms may recognise threats earlier and take quicker action. 

  1. Never divulge private details to a complete stranger.

They could commit fraud using the information.

  1. To avoid cybercrime, check your security settings.

In order to determine if someone has logged into your computer, a cyber firewall analyses your network settings.

  1. Antivirus software usage

Antivirus software aids in identifying potential threats and malware before they infect a computer system. Never use cracked software since doing so puts your computer at considerable risk for virus infection or data loss.

  1. Keep your information protected when browsing unofficial websites.

Information can readily bypass the data through phishing websites.

  1. Virtual private networks (VPNs) should be used.

We can conceal our IP addresses using VPNs.

  1. Access restrictions on your most important data

If you can, create a folder to keep private documents hidden.

Conclusion

Cyber fraud is a growing problem and can have serious financial and personal consequences. It is important to understand the different types of cyber fraud and how to protect yourself from becoming a victim. By taking the necessary steps to protect your personal information and monitoring your credit, you can help to prevent cyber fraud and keep yourself protected.

 

Team Lawyered
Team Lawyered

Lawyered is a legal tech initiative designed to change the way people interact with and within the legal industry. We believe that access to critical services like legal should be just a click away. Our team is working to bring legal online, making it cost effective, high quality and accessible for all.

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Sophie Asveld

February 14, 2019

Email is a crucial channel in any marketing mix, and never has this been truer than for today’s entrepreneur. Curious what to say.

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Sophie Asveld

February 14, 2019

Email is a crucial channel in any marketing mix, and never has this been truer than for today’s entrepreneur. Curious what to say.

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