However, the most concerning issue, as highlighted by the Central government's official communication, is the staggeringly low number of arrests in these cases.
Despite over 66,000 cases being registered by various law enforcement agencies, the total number of arrests stands at just 500, amounting to less than 1% of the reported cases.
This discrepancy has been a recurring topic in meetings within the Ministry of Home Affairs and the Ministry of Finance. During a recent Financial Stability and Development Council (FSDC) meeting, several stakeholders voiced their frustration over the minimal progress in arrests.
A significant part of the problem lies in the increasing prevalence of fraudulent loan lending apps, which have severely impacted India's financial infrastructure.
These apps disproportionately affect low-income groups, leading to significant financial losses as money is often funneled out of the country. According to a senior official present at the FSDC meeting, many of these apps operate from China, posing a dual threat to both financial institutions and the economic stability of vulnerable populations. The official noted that some Indian nationals involved in these crimes inadvertently aid China-based operators, thereby becoming victims themselves.
In response to these growing concerns, the central government has urged tech giants like Google and Meta to deploy experts to combat the menace. There is a heightened alarm over advertisements run by organized threat actors, many of whom operate internationally. A central cyber agency's analysis revealed that numerous mobile applications were conducting ad campaigns on Meta platforms, leading to a slew of suicides linked to harassment and extortion by illegal app operators and loan recovery agents.
The misuse of app permissions for harvesting credentials and data adds another layer of risk, potentially enabling future cybercrimes.
The FSDC meeting underscored the urgency of addressing these issues, with multiple stakeholders pushing for the Ministry of Home Affairs to take immediate action. Sources indicate that the Ministry is now expected to convene a meeting with various agencies to expedite investigations and increase the number of arrests.
This coordinated effort aims to enhance the pace and effectiveness of law enforcement responses to cyber fraud, thereby protecting India's financial ecosystem and its most vulnerable citizens.
