Cybercrime: MHA to Establish Center to Fight Real-Time Financial Fraud in First 100 Days of Modi 3.0 | Exclusive

The Ministry of Home Affairs is about to launch a new division that will only deal with cyber financial fraud in real-time by preserving the victim’s money. This division is expected to be a game-changer. According to sources, the Indian Cybercrime Coordination Center will soon house the Cyber Fraud Mitigation Center, which will be established by the national government.

Various parties concerned with preventing financial fraud would operate from one place, sitting at one address, a senior official told News18. All government authorities, banks, telecom service providers, IT intermediaries, and social media businesses that deal with online fraud already operate out of offices. As a result, they communicate with one another electronically, which slows down the process of stopping financial crime or transactions.

It was realized that seamless collaboration between organizations such as banks and financial institutions, telecom service providers, IT intermediaries, social media platforms, and law enforcement agencies is urgently needed to properly detect and reduce cyber-enabled fraud. This need will be met by the Cyber Fraud Mitigation Centre (CFMC), since everyone will collaborate to eliminate delays. Within 100 days of the new Narendra Modi administration taking office, the project would begin, the person said.

MHA sources provided information on the new effort, stating that all agencies operate under the present system, which involves internet communication and office work. “This structure has its drawbacks in terms of attaining the essential coordination needed to avoid cybercriminals from siphoning off money via financial fraud. The establishment of the Cyber Fraud Mitigation Center (CFMC) and the colocation of representatives of the aforementioned organizations might lead to effective cooperation, according to the sources.

Major banks have chosen to send out their representatives, although not all banks have consented as of yet. A senior source said, “Nearly two dozen representatives of major banks, five telecom service providers, two Haryana police representatives, and two Delhi police representatives have been positioned at CFMC for near real-time coordination to stop cyber-enabled fraud.”

Currently, agencies may save around 11% of the fraud amount; once this center is operational, agencies anticipate saving between 50% and 60% of the money that is embezzled from the public. According to reports, it will also enable victims to get their money back more quickly than it does now.

The Indian Cybercrime Coordination Centre (I4C) is currently developing the Citizen Financial Cyberfrauds Reporting and Management System (CFCFRMS) as a component of the National Cybercrime Reporting Portal (NCRP) by combining law enforcement agencies, large banks, and financial intermediaries.

The technology assists in sharing information about online fraud in almost real-time and in responding quickly to citizen complaints of financial cybercrime. It also stops money from moving from the victim’s account to the fraudster’s account.

“All states and territories have operationalized the national cybercrime hotline number, 1930, for the prompt reporting of financial cyber fraud nationwide. Financial fraud facilitated by cyberspace accounts for a significant portion of cybercrimes recorded globally. A “lien mark” of Rs 1,434.27 crore, belonging to 5,25,906 victims, has been successfully placed by the CFCFRMS. Significantly, agencies would start saving money in real-time when the new center is set up, within a few minutes of a case being reported, according to another source who was informed of the development.