Financial Crime Reporting Takes Centre Stage in Cambodia as India Seeks to Curb Fraud
Phnom Penh, Cambodia - A New Front in the Fight Against Financial Crimes
In a bid to combat the rising tide of financial crimes emanating from South-East Asia, particularly from Cambodia, India has stepped up efforts to strengthen reporting mechanisms and cooperation with regional authorities.
The Problem: Financial Crimes Originating from South-East Asia
According to Rajesh Kumar, Chief Executive Officer (CEO) of the Indian Cyber Crime Coordination Centre (I4C), nearly half of financial frauds targeting Indians originate from Cambodia, along with its neighbors Myanmar and Laos. The majority of these scams are carried out through web applications written in Chinese language, hinting at a possible Chinese connection.
The Impact: India Suffers Heavy Losses to Financial Crimes
In the first four months of this year, India witnessed over ₹1,776 crore lost to 89,054 cases of financial crimes such as digital arrest, stock market scam, investment scam, and romance or dating scam. This has led to a spurt in organized crime from South-East Asia, with complaints pouring in on national cybercrime portal - cybercrime.gov.in and the 1930 helpline.
Efforts to Combat Financial Crimes
I4C and State police have made significant strides in tackling these crimes, blocking over 3.25 lakh mule bank accounts, 595 apps, and more than 3,000 URLs in the past four months. Additionally, 5.3 lakh SIM cards and 80,848 IMEI numbers were suspended since July 2023, while 3,401 WhatsApp groups were taken down in the last two months.
Key Challenges and Solutions
Financial Crime Hotspots
- Jharkhand
- Haryana
- Rajasthan
- West Bengal
Aiding Effective Prosecution and Sentencing
The newly enacted Bharatiya Nyaya Sanhita (BNS) will categorize such crimes as organized crime, which will aid in more effective prosecution and sentencing.
International Cooperation and Collaboration
In a significant development, on May 20, many Indians working in a suspected scam compound in Sihanouk city, Cambodia protested against their employers. The Andhra Pradesh police are investigating the case, and three recruiting agents have been arrested.
The Indian Embassy is also working to bring back over 360 Indians who were brought to these compounds on tourist visas and never returned. Kumar expressed concern for those still trapped in these scam compounds and sought help from the Ministry of External Affairs (MEA) to trace them.
Conclusion
India’s efforts to strengthen financial crime reporting mechanisms and cooperation with regional authorities are crucial in combating the rising tide of scams emanating from South-East Asia, particularly from Cambodia.