Hello there! If you’re reading this article, it’s likely that you’re concerned about the rising prevalence of online scams in India or, perhaps, you or someone you know has unfortunately been affected by one. Rest assured, you are not alone, and legal remedies are available to assist you.
Over the last decade, I’ve been researching and writing about financial frauds in India, especially the digital kind. And let us tell you, the web of deceit has become more sophisticated, but fortunately, so has our legal system.
From simple phishing emails to complex Ponzi schemes, the digital underworld is booming. But with awareness, timely action, and a little legal know-how, you can fight back.
Let’s deep dive into the types of online frauds in India, the scamming laws that cover them, and what you can actually do about it.
The Explosion of Online Scams in India: Why You Should Be Concerned
India is currently among the top countries when it comes to cyber fraud. Whether it’s fake job offers, lottery winnings, phishing links, identity theft, or mortgage fraud, every day, countless people are being duped.
And the worst part? Many victims never report these crimes—either out of shame, confusion, or lack of legal awareness. Our key message for you to take away from this article is this: you possess legal rights, and we encourage you to take informed action to protect them.
Here are just a few alarming stats:
- According to a recent report, cybercrime cases in India rose by over 70% in the last five years.
- Most commonly targeted? Middle-class working professionals, retirees, and even students.
- Maharashtra, Uttar Pradesh, Karnataka, and Delhi are currently hotbeds for online scams in India.
Now let’s break this all down—what exactly are these frauds, and how do they work?
Common Types of Online Frauds in India You Should Know About
Even the most discerning individuals can be targeted by online scams, as fraudsters continually refine their sophisticated tactics. Let’s walk through some of the most widespread and dangerous types of online frauds in India:
1. Phishing Attacks
You get an email or SMS that looks like it’s from your bank. It asks for personal details like your OTP or account password. You trust it. You share it. And boom—your money’s gone.
2. Investment Frauds
Indian scammers promise high returns on crypto, stocks, or gold investments. Once you invest, they disappear without a trace. These frauds often operate via social media and WhatsApp.
3. Mortgage and Property Fraud
Yes, mortgage fraud is a thing in India. Fraudsters forge documents or impersonate property owners to sell or mortgage someone else’s property. The punishment for mortgage fraud in India can be severe—but more on that later.
4. Fake Job Offers
Desperate for a job? Scammers know this. They send you fake offer letters, ask for a ‘registration fee,’ and vanish once you’ve paid.
5. Online Shopping Scams
Too-good-to-be-true discounts on electronics, designer goods, or even vehicles lure people in. The result? You pay for something that never arrives.
6. Credit Card & ATM Frauds
Cloning cards, stealing PINs via skimmers, or misusing your card details online—this is rampant in cities and rural areas alike.
How Do Indian Scammers Operate?
They play on urgency and emotion. A loved one is in danger, a job is slipping away, or a deal is about to expire. They contact you through:
- SMS and emails
- WhatsApp and Telegram groups
- Fake websites and ads
- Impersonated bank/customer service numbers
And yes, sometimes, even from within India’s own call centers.
Once they’ve lured you in, they exploit loopholes in awareness and delay your decision-making until it’s too late.
Scamming Laws in India: What Legal Provisions Are There?
India’s legal system does not take cybercrime lightly. There are a number of scamming laws in place that allow victims to take legal action.
Let’s go through the main ones.
1. Information Technology (IT) Act, 2000
This is the primary legislation for dealing with online scams in India.
Key Sections:
- Section 66C – Identity theft
- Section 66D – Cheating by personation using computer resources
- Section 43 – Hacking or damage to computer systems
The punishment can include imprisonment up to 3 years, fines, or both.
2. Bharatiya Nyaya Sanhita (BNS), 2023
Apart from the IT Act, the BNS also plays a crucial role:
Relevant IPC Sections:
- Section 318 – Cheating and dishonestly inducing delivery of property
- Section 336 – Forgery for the purpose of cheating
- Section 336 – Using forged documents
- Section 316 – Criminal breach of trust
For instance, the punishment for mortgage fraud (if proven under IPC Sections 420/468/471) can lead to 7 years imprisonment and/or fines.
Suggested Read: https://ashwaryasinha.com/trending/understanding-zero-fir-under-bnss/
3. The RBI Guidelines
If the scam involves financial frauds in India through UPI, credit cards, or internet banking, you can approach the Reserve Bank of India (RBI) and file a grievance through the Banking Ombudsman Scheme.
Legal Action for Financial Frauds in India: What You Can Do
Now, let us focus on empowering you to transition from being a victim to taking proactive steps toward resolution. Here’s a step-by-step on how to report financial frauds in India:
Step 1: Register a Complaint at Cybercrime Portal
Visit www.cybercrime.gov.in – India’s official portal to report cybercrimes. File a detailed complaint and upload supporting documents.
Pro Tip: Always include screenshots, chat transcripts, bank statements, and anything else that can prove the fraud.
Step 2: File an FIR at the Local Police Station
Once you’ve reported online, visit your local police station and file an FIR under relevant sections of the IPC and IT Act.
If the police refuse, approach the Superintendent of Police or file a private complaint with a magistrate under Section 156(3) CrPC.
Step 3: Inform Your Bank or Financial Institution
Immediately report the fraud to your bank. If reported within 3 days, the RBI mandates zero liability for the customer in case of unauthorised transactions.
Step 4: Approach a Lawyer or Cybercrime Cell
If the loss is significant or if there’s a delay in action, approach a cyber lawyer. You can also escalate to the state cybercrime cell.
Step 5: Seek Compensation
Yes, you can even file for compensation for the financial loss, especially if the service provider (like a bank or website) was negligent.
Real-Life Case Example: How One Victim Got Justice
Allow us to share details of a case that has left a lasting impression.
A Delhi-based woman received a call from someone posing as a bank executive. She shared her OTP, believing it was for account verification. Within minutes, ₹1.8 lakhs were debited from her account.
She reported it within 24 hours, filed a complaint on cybercrime.gov.in, informed her bank, and even followed up with the police. Within 3 months, thanks to her persistence and clear documentation, she got her money refunded and the scammer was traced.
The moral? Action beats regret.
What to Do If Someone Takes a Loan in Your Name
This one’s becoming disturbingly common in India—and incredibly dangerous.
You get a call from a bank you’ve never dealt with. They say you’ve defaulted on a loan. But you never took a loan, right? So what happened?
You’ve Just Become a Victim of Identity Theft.
Fraudsters have used forged Aadhaar, PAN, or even your selfie to create a fake loan profile and pocketed the money. You’re left holding the legal and financial liability.
So what now?
Immediate Steps to Take:
- Get Your CIBIL Report Immediately
Visit www.cibil.com and download your report to confirm the fraudulent entry. - File a Cybercrime Complaint
Visit www.cybercrime.gov.in and report the issue under identity theft and financial fraud. - File a Police Complaint / FIR
Lodge an FIR under IPC Sections 419, 420, 465, 468, 471, and 66C/66D of the IT Act. - Raise a Dispute with the Lender
Submit your FIR copy and CIBIL report to the lender, asserting your identity has been misused. Ask them to mark the account as fraudulent. - Request a CIBIL Correction
Raise a dispute on CIBIL to get the fake entry removed once you have the evidence.
This is a long process, however—many victims have successfully cleared their names. Your credit score and future are worth the effort.
Psychological Impact of Financial Frauds in India
Before we go further, let’s pause and talk about something not often discussed: the emotional and mental toll these scams take.
Being scammed can feel humiliating. Many victims suffer:
- Shame and guilt
- Loss of trust
- Anxiety or depression
- Strained family relationships
Remember: getting scammed doesn’t mean you’re foolish. It means you’re human. These scammers are professionals at deception. What matters is what you do next.
Speak to a counsellor if needed. And more importantly—speak up. The more we talk about these things, the stronger the resistance becomes.
Advanced Scams You Must Be Aware Of
Let’s cover some lesser-known but very real types of online frauds in India that are on the rise:
1. Deepfake Scams
AI-powered fake videos and voice clips are being used to impersonate CEOs or relatives and demand urgent payments.
2. Romance & Dating Frauds
You meet someone online, build an emotional connection, and then they start asking for money—for medical emergencies, visas, or travel. It’s all a lie.
3. Fake Loan Apps
Download a loan app from a third-party store. In minutes, you’re offered money with zero paperwork. But behind the scenes, your entire contact list and gallery are being accessed. Miss a payment? The blackmail begins.
4. Job Scams on LinkedIn and Naukri
Scammers are creating fake HR profiles, even cloning real companies, to offer you jobs after taking a “background verification” fee.
How to Recognise a Scam Before It’s Too Late
So how do you spot online scams in India before they trap you?
Here are some classic red flags:
- Urgency: “Act now or lose this opportunity!”
- Requests for sensitive information: OTPs, CVVs, passwords.
- Offers that are too good to be true.
- Poor grammar or unprofessional emails.
- Numbers from international or private numbers asking for payments.
- Apps not listed on Google Play or the App Store.
- No physical office address or customer service line.
Remember, trust but verify. Always.
Scamming Laws & Punishment for Mortgage Fraud and Cyber Offences
Earlier we touched on the scamming laws in India, but let’s zoom in a bit more on punishment for mortgage fraud and other major financial crimes:
Under the BNS:
- Section 318 (Cheating): Up to 7 years imprisonment + fine
- Section 336 (Forgery for cheating): Up to 7 years
- Section 336 (Using forged documents): Same punishment as forgery
- Section 316 (Breach of trust): Up to 3 years
Suggested Read: Zero FIR Under BNSS
Under the IT Act:
- Section 66C: Identity theft → 3 years imprisonment + fine up to ₹1 lakh
- Section 66D: Impersonation via electronic means → 3 years + ₹1 lakh fine
For Mortgage Frauds:
If land records or identity documents were forged to fraudulently mortgage a property, then multiple IPC sections apply—especially 420, 468, and 471. This could mean a jail term of up to 10 years in serious cases.
Prevention Is Better Than Cure: How to Stay Safe
Legal remedies are available, yes—but how about we make sure you never need them?
Cyber Hygiene Tips You Must Follow:
- Never share OTPs or PINs—not even with family over chat.
- Enable two-factor authentication on all apps and email accounts.
- Don’t click on unknown links in SMS or WhatsApp.
- Verify job and loan offers directly on company websites.
- Download apps only from official app stores.
- Check URLs before making payments—phishing sites look almost identical to real ones.
- Use trusted antivirus software.
Also, educate your family. Elderly parents and teens are often targeted, and they may not realise it.
Key Takeaways: Take Action, Stay Aware, Speak Up
The rise in online scams in India and financial frauds in India may seem overwhelming, but you’re more powerful than you think. With a bit of knowledge, vigilance, and quick response, you can protect yourself and others.
Here’s a quick recap of what you can do:
- Understand the types of online frauds in India.
- Know your rights under scamming laws.
- Take swift legal action for financial frauds in India.
- Use cyber hygiene practices every day.
- Don’t suffer in silence—report and speak up.
If you found this blog helpful, share it with someone who might need it. Stay alert, stay informed, and don’t let scammers win.
Have a question or dilemma? Drop a comment or reach out to AshwaryaSinha —we’re here to support you.
For seeking personalised information regarding the legal remedies available contact us at: info@ashwaryasinha.com and office@ashwaryasinha.com
