Linking KYC to biometrics, Passport-based roaming among key measures to curb overseas cybercrime

New Delhi:

The Central Bureau of Investigation (CBI) and the Indian Cybercrime Coordination Centre (I4C) are weighing a series of measures to recommend to the government, including linking banks’ Know-Your-Customer (KYC) processes with biometric verification and tethering international mobile roaming services to passports.

The proposals are part of a broader push to curb cybercrimes such as digital arrests that originate from abroad, officials said on Friday.

Conference on cyber-enabled frauds

The proposals emerged during a recent two-day conference organised by the CBI and the Home Ministry’s I4C on tackling cybercrimes. The meeting brought together cyber-security experts, law-enforcement officials, banking representatives including those from the Reserve Bank of India (RBI), Interpol officials and security agencies.

Discussions centred on the misuse of Indian SIM cards and mule bank accounts by cybercriminal syndicates operating from South East Asian countries.

The conference focused on three critical pillars of the cyber-fraud ecosystem:

• The financial pillar (mule accounts and money laundering)
• The telecom pillar (misuse of SIM or eSIM and digital infrastructure)
• The human pillar (cyber slavery and trafficking into scam compounds)

Cybercrime scenario ‘alarming’: Amit Shah

Union Home Minister Amit Shah described the cybercrime situation as alarming, stating that one person becomes a victim every 37 seconds and, on average, 100 people fall prey to such frauds every hour.

He directed agencies to send recommendations to the government based on the deliberations at the conference.

Addressing the national conference titled “Tackling Cyber-Enabled Frauds and Dismantling the Ecosystem,” CBI Director Praveen Sood said that regardless of where cybercriminals are located, crimes cannot be committed without a SIM card and a bank account.

He noted that cybercrime hubs have shifted from Indian regions such as Jamtara, Mewat and Bharatpur to countries like Cambodia, Thailand and Myanmar, where individuals are lured with job offers and forced into committing fraud.

Misuse of SIM cards and mule accounts

Sources said the recommendations will primarily target the misuse of Indian SIM cards and mule bank accounts.

Investigations revealed that Indian SIM cards are activated domestically, smuggled abroad and used to call unsuspecting Indians. Victims are coerced through tactics such as digital arrest threats, fake loan offers and fraudulent job schemes.

Once money is transferred, it is funnelled through multiple mule accounts and often routed into cryptocurrency or other bank accounts, making tracing and recovery difficult.

Mule accounts opened using falsified identification documents act as conduits for siphoning funds. These accounts may belong to individuals knowingly laundering money or unsuspecting persons exploited in larger fraud schemes.

Key proposals under consideration

Among the actionable proposals under discussion are:

• Linking international mobile roaming services to passports

• Regulating international roaming based on customer profiles

• Integrating biometric verification into banks’ KYC processes

• Regulating access to Indian bank accounts from abroad using VPN services

Officials said these suggestions may be submitted to the government for further review, discussions and implementation.

Authorities emphasised that efforts would ensure that genuine travellers do not face inconvenience while preventing misuse.

Rising losses and investigation efforts

The Supreme Court of India recently observed that, according to some estimates, over Rs 54,000 crore may have been stolen from Indians through cybercrimes, including digital arrest scams.

The CBI has been investigating cybercrimes since 2000 and established its Cybercrime Investigation Division in 2022 to strengthen capabilities. The agency serves as the nodal body for probing cyber-dependent crimes and cyber-enabled frauds affecting the central government and its offices.

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