FRAUDALERT
Every week, I track how fraudsters and cybercriminals from around the world adapt more quickly than regulators and remain several steps ahead of law enforcement agencies (LEAs). But a bigger danger is now emerging: a growing digital trust deficit. This is the widening gap between what citizens expect from digital systems — security, transparency and privacy — and what they actually experience: repeated data leaks, opaque processes and constant cyberattacks. Unfortunately, this loss of trust only makes it easier for cybercriminals and fraudsters to operate.

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Adv (Dr) Prashant Mali 24 November 2025
Financial inclusion was never the problem. Lack of financial hygiene was. And today, the prime minister’s Jan Dhan Yojana (PMJDY or Jan Dhan), once celebrated as the world’s largest banking inclusion project, is quietly mutating into India’s most vulnerable attack surface for cybercrime.

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Two recent incidents show how cybercriminals are quickly changing their tactics to fool even alert and well-informed people.

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A disturbing trend is spreading across India — fraudsters are using leaked personal and business data to pose as government officials. They are calling citizens and company representatives on the phone and through WhatsApp, threatening them with legal action or arrest. These scams are becoming more sophisticated, often supported by fake identity cards and forged documents that look genuine at first glance.

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Recent reports from the US department of homeland security and cybersecurity services providers reveal that Chinese criminal organisations have earned more than US$1bn (billion) through a wave of sophisticated text message scams — a scheme that serves as a global warning, including for India.

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Identity-based cyberattacks are now among the most serious and fastest-growing online threats affecting both individuals and organisations across the world. New research from Sophos X-Ops counter threat unit (CTU) shows that the number of stolen login details for sale on the dark web has increased by 106% between June 2024 and June 2025. This sharp rise demonstrates how hackers now view digital identities as a valuable commodity in the world of cybercrime.

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A recent meme on social media perfectly captured the absurdity of today’s 'smart' era. “When your smart water purifier won’t give you drinking water because Amazon Web Services (AWS) is down,” posted user @IndraVahan, along with an image of a futuristic purifier refusing to work due to a cloud outage. The picture had a 'Dream' watermark — likely AI-generated — but the joke felt uncomfortably close to reality.

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Artificial intelligence (AI) is often praised as the future of efficiency — capable of writing reports, summarising data, and supporting decision-making.

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As cases of digital arrest scams rise across India—often leading to serious consequences, including financial losses for victims—law enforcement agencies (LEAs) have stepped up their crackdown on these transnational, cyber-enabled frauds.

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“Apply now and get a FREE laptop from the Government of India.”

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Thousands of people worldwide have been left heartbroken and bankrupt after falling victim to a new wave of sophisticated online scams.

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A ransomware attack on Surya Shakti Infotech Pvt Ltd, which manages online college admissions, compromised student data and disrupted entrance processes at several institutes, including Scottish Church College.

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When artificial intelligence (AI) company Anthropic released its latest Threat Intelligence Report, it carried a chilling message: cybercriminals are no longer just asking AI tools for help—they are now using them as full-fledged partners in crime.

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Imagine receiving a message with a link showing Union finance minister Nirmala Sitharaman not just endorsing an investment scheme but also appearing as its main promoter. The message carries her photo and a (fake) statement in her name: "I could not allow myself to support the launch of such a significant financial instrument without personally testing it first. We already had strong data showing the platform’s impressive performance, but as a policymaker and economist, I believe in facts over forecasts. So I decided to try it myself."

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For a long time, getting a one-time passcode (OTP) by text message was seen as a safe way to protect online accounts. This extra step, called two-factor authentication (2FA), added a layer of security on top of a password. Banks, email services and social media platforms all promoted it as a shield against hackers. But today, that protection is not as reliable as we all once believed.

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In late June, a Lucknow-based advertising company fell victim to a ransomware attack. Hackers broke into its servers, locked critical data with encryption and demanded money to unlock it. When recovery attempts failed, the company had to wipe its systems clean and restore from backups. In the process, most of the digital evidence was lost.

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A few days ago, Chintamani uncle (name changed) received an email from an old friend, a retired senior police officer. He had no reason to suspect anything was wrong. In the email, the officer, who once held the rank of inspector general of police (IG), asked him to donate money for the medical treatment of a child.

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A new wave of cyber fraud is targeting Indian investors, with scammers posing as authorised representatives of foreign portfolio investors (FPIs) or foreign institutional investors (FIIs) registered with the Securities and Exchange Board of India (SEBI).

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Earlier this year, Delhi police’s crime branch raided several locations in Laxmi Nagar, Budh Vihar, and Chandni Chowk and uncovered a cache of fake cancer medicines. The counterfeit drugs were neatly packaged and labelled to appear genuine, ready to be sold online to patients desperate for affordable treatment.

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