Financial Crime Investigation Techniques in Cambodia: A Growing Concern for India

The recent revelation that nearly half of financial frauds targeting Indians have originated from Cambodia and other South-East Asian countries has raised concerns about the growing menace of financial crimes.

A Spike in Organised Crime

According to Rajesh Kumar, Chief Executive Officer (CEO) of the Indian Cyber Crime Coordination Centre (I4C), there has been a significant spike in organised crime from these regions. In the first four months of this year, India suffered losses of over ₹1,776 crore in 89,054 cases of financial crimes such as digital arrest, stock market scam, investment scam, and romance or dating scam.

Investigation Reveals Chinese Connection

The investigation revealed that many web applications used to commit these frauds are written in the Chinese language, indicating a possible Chinese connection. Furthermore, it was found that a large number of Indian nationals have been duped into joining suspected scam compounds in Cambodia and other South-East Asian countries, where they are made to work for long hours under false promises.

Scam Compounds Identified

The authorities have identified “scam compounds” in these countries, which resemble call centres. Fraudsters use these compounds to make calls to unsuspecting people in India. The maximum number of complaints related to investment scam, which lures people mainly through social media, accounts for 62,687 cases.

Government Response

To combat this growing menace, the Indian government has identified key hotspots in Jharkhand, Haryana, Rajasthan, and West Bengal, where financial crimes are still active and expanding. Around 1,000 people have been arrested since December last year.

Collaboration with Chinese Authorities

The authorities are working closely with the Chinese government to address this issue, as China itself has been a victim of such scams. In one instance, over 44,000 Chinese people were brought back from “scam compounds” in Cambodia.

New Law and Machine-Based Solution

The newly enacted Bharatiya Nyaya Sanhita (BNS) law will come into effect from July 1, which will categorise such crimes as organised crime. The authorities are also working with Google to devise a machine-based solution to prevent fraudulent activities on the platform.

Inter-Ministerial Committee Convened

To mitigate cybercrime originating from South-East Asia targeting India, a high-level inter-ministerial committee has been constituted and is currently working on strategies to combat this growing threat.