1. VIDYALANKAR SCHOOL OF INFORMATION TECHNOLOGY
BUSINESS LAW
INFORMATION TECHNOLGY ACT-2000 & CYBER CRIME
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2. Index
Sr No Particular Page No
1 Introduction 3-4
2 Information Technology ACT 2000 5-13
3 Cyber Crime 14-18
4 Types of Crime 19-22
5 Cyber Criminal 23-25
6 Facts & Figures 26-29
7 Case Study 30-36
8 Conclusion 37-38
9 Bibliography 39-40
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3. Introduction
Success in any field of human activity leads to crime that needs mechanisms to control it. Legal provisions
should provide assurance to users, empowerment to law enforcement agencies and deterrence to criminals. The
law is as stringent as its enforcement. Crime is no longer limited to space, time or a group of people. Cyber
space creates moral, civil and criminal wrongs. It has now given a new way to express criminal tendencies.
Back in 1990, less than 100,000 people were able to log on to the Internet worldwide. Now around 600 million
people are hooked up to surf the net around the globe.
With increased use of computers in homes and offices, there has been a proliferation of computer-related
crimes.
These crimes include:
(i) Crimes committed by using computers as a means, including conventional crimes.
(ii) Crimes in which computers are targets.
The Internet in India is growing rapidly. It has given rise to new opportunities in every field we can think of –
be it entertainment, business, sports or education. There are two sides to a coin. Internet also has its own
disadvantages. One of the major disadvantages is Cybercrime – illegal activity committed on the Internet. The
Internet, along with its advantages, has also exposed us to security risks that come with connecting to a large
network. Computers today are being misused for illegal activities like e-mail espionage, credit card fraud,
spams, and software piracy and so on, which invade our privacy and offend our senses. Criminal activities in
the cyberspace are on the rise.
"The modern thief can steal more with a computer than with a gun. Tomorrow's terrorist may be able to
do more damage with a key board than with a bomb".
Until recently, many information technology (IT) professionals lacked awareness of an interest in the cyber
crime phenomenon. In many cases, law enforcement officers have lacked the tools needed to tackle the
problem; old laws didn’t quite fit the crimes being committed, new laws hadn’t quite caught up to the reality of
what was happening, and there were few court precedents to look to for guidance? Furthermore, debates over
privacy issues hampered the ability of enforcement agents to gather the evidence needed to prosecute these new
cases. Finally, there was a certain amount of antipathy—or at the least, distrust— between the two most
important players in any effective fight against cyber crime: law enforcement agencies and computer
professionals. Yet close cooperation between the two is crucial if we are to control the cyber crime problem and
make the Internet a safe “place” for its users.
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4. In the world of cyber crime, evil bytes are fast replacing whizzing bullets. The Indian authorities are aware of
the fight ahead. But the future does not look optimistic, shares experts. Life is about a mix of good and evil. So
is the Internet. For all the good it does us, cyberspace has its dark sides too. Unlike conventional communities
though, there are no policemen patrolling the information super highway, leaving it open to everything from
Trojan horses and viruses to cyber stalking, trademark counterfeiting and cyber terrorism.
Given the unrestricted number of free Web sites, the Internet is undeniably open to exploitation. Known as
cyber crimes, these activities involve the use of computers, the Internet, cyberspace and the World Wide Web.
"Any criminal activity that uses a computer either as an instrumentality, target or a means for perpetuating
further crimes comes within the ambit of cyber crime," says Supreme Court advocate and cyber law expert
Pavan Duggal.
While the worldwide scenario on cyber crime looks bleak, the situation in India isn't any better. There are no
concrete statistics but, according to Duggal, Indian corporate and government sites have been attacked order
faced more than 780 times between February 2010 and December 2010.
Until recently, many information technology (IT) professionals lacked awareness of an interest in the cyber
crime phenomenon. In many cases, law enforcement officers have lacked the tools needed to tackle the
problem; old laws didn’t quite fit the crimes being committed, new laws hadn’t quite caught up to the reality of
what was happening, and there were few court precedents to look to for guidance. Furthermore, debates over
privacy issues hampered the ability of enforcement agents to gather the evidence needed to prosecute these new
cases. Finally, there was a certain amount of antipathy—or at the least, distrust— between the two most
important players in any effective fight against cyber crime: law enforcement agencies and computer
professionals. Yet close cooperation between the two is crucial if we are to control the cyber crime problem and
make the Internet a safe “place “for its users.
Law enforcement personnel understand the criminal mindset and know the basics of gathering evidence and
bringing offenders to justice. IT personnel understand computers and networks, how they work, and how to
track down information on them. Each has half of the key to defeating the cyber criminal.
IT professionals need good definitions of cybercrime in order to know when (and what) to report to police, but
law enforcement agencies must have statutory definitions of specific crimes in order to charge a criminal with
an offense. The first step in specifically defining individual cybercrimes is to sort all the acts that can be
considered cybercrimes into organized categories.
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5. Information Technology Act 2000
Connectivity via the Internet has greatly abridged geographical distances and made communication even more
rapid. While activities in this limitless new universe are increasing incessantly, laws must be formulated to
monitor these activities. Some countries have been rather vigilant and formed some laws governing the net. In
order to keep pace with the changing generation, the Indian Parliament passed the much-awaited Information
Technology Act, 2000 .As they say,
"It’s better late than never".
However, even after it has been passed, a debate over certain controversial issues continues. A large portion of
the industrial community seems to be dissatisfied with certain aspects of the Act. But on the whole, it is a step
in the right direction for India.
The Information Technology Act 2000, regulates the transactions relating to the computer and the Internet
.
The objectives of the Act as reflected in the Preamble to the Act are:
1. The Preamble to the Act states that it aims at providing legal recognition for transactions carried out by
means of electronic data interchange and other means of electronic communication, commonly referred to
as "electronic commerce", which involve the use of alternatives to paper-based methods of communication
and storage of information and aims at facilitating electronic filing of documents with the Government
agencies.
2. To facilitate electronic filing of the document with the government of India. The General Assembly of the
United Nations had adopted the Model Law on Electronic Commerce adopted by the United Nations
Commission on International Trade Law (UNCITRAL) in its General Assembly resolution A/RES/51/162
dated January 30, 1997. The Indian Act is in keeping with this resolution that recommended that member
nations of the UN enact and modify their laws according to the Model Law.
Thus with the enactment of this Act, Internet transactions will now be recognized, on-line contracts will be
enforceable and e-mails will be legally acknowledged. It will tremendously augment domestic as well as
international trade and commerce.
The Information Technology Act extends to the whole of India and, saves as otherwise provided in this Act,
it applies also to any offence or contravention there under committed outside India by any person.
However The Act does not apply to:
1. a negotiable instrument as defined in section 13 of the Negotiable Instruments Act,1881;
2. a power-of-attorney as defined in section 1A of the Powers-of- Attorney Act, 1882;
3. a trust as defined in section 3 of the Indian Trusts Act, 1882;
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6. 4. A will as defined in clause (h) of section 2 of the Indian Succession Act, 1925including any other
testamentary disposition by whatever name called;
5. Any contract for the sale or conveyance of immovable property or any interest in such property;
6. Any such class of documents or transactions as may be notified by the Central Government in the Official
Gazette.
Some of the Important Definition:
1."Adjudicating officer" means an adjudicating officer appointed under subsection of section 46;
2."Affixing digital signature" with its grammatical variations and cognate expressions means adoption of any
methodology or procedure by a person for the purpose of authenticating an electronic record by means of
digital signature;
3."Appropriate Government" means as respects any matter,—
(i) Enumerated in List II of the Seventh Schedule to the Constitution;
(ii) Relating to any State law enacted under List III of the Seventh Schedule to the Constitution, the State
Government and in any other case, the Central Government;
4."Asymmetric crypto system" means a system of a secure key pair consisting of a private key for creating a
digital signature and a public key to verify the digital signature;
5."Certifying Authority" means a person who has been granted a licence to issue a Digital Signature
Certificate under section 24;
6."Certification practice statement" means a statement issued by a Certifying Authority to specify the
practices that the Certifying Authority employs in issuing Digital Signature Certificates;
7."Cyber Appellate Tribunal" means the Cyber Regulations Appellate Tribunal established under sub-section
(1) of section 48;
8."Digital signature" means authentication of any electronic record by a subscriber by means of an electronic
method or procedure in accordance with the provisions of section 3;
9."Digital Signature Certificate" means a Digital Signature Certificate issued under subsection of section 35;
10."Electronic form" with reference to information means any information generated, sent, received or stored
in media, magnetic, optical, computer memory, micro film, computer generated micro fiche or similar device;
11."Electronic Gazette" means the Official Gazette published in the electronic form;
12."Secure system" means computer hardware, software, and procedure that—
(a) are reasonably secure from unauthorised access and misuse;
(b) provide a reasonable level of reliability and correct operation;
(c) are reasonably suited to performing the intended functions; and
(d) adhere to generally accepted security procedures;
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7. Legitimacy and Use of Digital Signatures
The Act has adopted the Public Key Infrastructure for securing electronic transactions. As per Section 3 of the
Act, a digital signature means an authentication of any electronic record by a subscriber by means of an
electronic method or procedure in accordance with the other provisions of the Act. Thus a subscriber can
authenticate an electronic record by affixing his digital signature. A private key is used to create a digital
signature whereas a public key is used to verify the digital signature and electronic record. They both are
unique for each subscriber and together form a functioning key pair.
Section 5 provides that when any information or other matter needs to be authenticated by the signature of a
person, the same can be authenticated by means of the digital signature affixed in a manner prescribed by the
Central Government.
Under Section 10, the Central Government has powers to make rules prescribing the type of digital signature,
the manner in which it shall be affixed, the procedure to identify the person affixing the signature, the
maintenance of integrity, security and confidentiality of electronic records or payments and rules regarding any
other appropriate matters.
Furthermore, these digital signatures are to be authenticated by Certifying Authorities (CA’s) appointed under
the Act. These authorities would inter alias; have the license to issue Digital Signature Certificates (DSC’s).
The applicant must have a private key that can create a digital signature. This private key and the public key
listed on the DSC must form the functioning key pair
Once the subscriber has accepted the DSC, he shall generate the key pair by applying the security procedure.
Every subscriber is under an obligation to exercise reasonable care and caution to retain control of the private
key corresponding to the public key listed in his DSC. The subscriber must take all precautions not to disclose
the private key to any third party. If however, the private key is compromised, he must communicate the same
to the Certifying Authority (CA) without any delay.
Writing requirements
Section 4 of the Act states that when under any particular law, if any information is to be provided in writing or
typewritten or printed form, then not withstanding that law, the same information can be provided in electronic
form, which can also be accessed for any future reference. This non-obstinate provision will make it possible to
enter into legally binding contracts on-line!
Attribution, Acknowledgement and Dispatch of Electronic Records
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8. Explicates the manner in which electronic records are to be attributed, acknowledged and dispatched. These
provisions play a vital role while entering into agreements electronically.
Section 11 states that an electronic record shall be attributed to the originator as if it was sent by him or by a
person authorized on his behalf or by an information system programmed to operate on behalf of the originator.
As per Section 12, the addressee may acknowledge the receipt of the electronic record either in a particular
manner or form as desired by the originator and in the absence of such requirement, by communication of the
acknowledgement to the addresses or by any conduct that would sufficiently constitute acknowledgement.
Normally if the originator has stated that the electronic record will be binding only on receipt of the
acknowledgement, then unless such acknowledgement is received, the record is not binding. However, if the
acknowledgement is not received within the stipulated time period or in the absence of the time period, within a
reasonable time, the originator may notify the addressee to send the acknowledgement, failing which the
electronic record will be treated as never been sent.
Section 13 specifies that an electronic record is said to have been dispatched the moment it leaves the computer
resource of the originator and said to be received the moment it enters the computer resource of the addressee.
Utility of electronic records and digital signatures in Government Audits Agencies
According to the provisions of the Act, any forms or applications that have to be filed with the appropriated
Government office or authorities can be filed or any license, permit or sanction can be issued by the
Government in an electronic form. Similarly, the receipt or payment of money can also take place
electronically.
Moreover, any documents or records that need to be retained for a specific period may be retained in an
electronic form provided the document or record is easily accessible in the same format as it was generated,
sent or received or in another format that accurately represents the same information that was originally
generated, sent or received. The details of the origin, destination, date and time of the dispatch or receipt of the
record must also be available in the electronic record.
Furthermore, when any law, rule, regulation or byelaw has to be published in the Official Gazette of the
Government, the same can be published in electronic form. If the same are published in printed and electronic
form, the date of such publication will be the date on which it is first published.
However, the above-mentioned provisions do not give a right to anybody to compel any Ministry or
Department of the Government to use electronic means to accept issue, create, retain and preserve any
document or execute any monetary transaction. Nevertheless, if these electronic methods are utilized, the
Government will definitely save a lot of money on paper!
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9. Regulation of Certifying Authorities (CAs)
A CA is a person who has been granted a license to issue digital signature certificates. These CAs are to be
supervised by the Controller of CAs appointed by the Central Government. Deputy or Assistant Controllers
may also assist the Controller. The Controller will normally regulate and monitor the activities of the CAs and
lay down the procedure of their conduct.
The Controller has the power to grant and renew licenses to applicants to issue DSCs and at the same time has
the power to even suspend such a license if the terms of the license or the provisions of the Act are breached.
The CAs has to follow certain prescribed rules and procedures and must comply with the provisions of the Act.
Issuance, Suspension and Revocation of Digital Signature Certificates (DSCs)
As per Section 35, any interested person shall make an application to the CA for a DSC. The application shall
be accompanied by filing fees not exceeding Rs. 25,000 and a certification practice statement or in the absence
of such statement; any other statement containing such particulars as maybe prescribed by the regulations. After
scrutinising the application, the CA may either grant the DSC or reject the application furnishing reasons in
writing for the same.
While issuing the DSC, the CA must inter alias, ensure that the applicant holds a private key which is capable
of creating a digital signature and corresponds to the public key to be listed on the DSC. Both of them together
should form a functioning key pair.
The CA also has the power to suspend the DSC in public interest on the request of the subscriber listed in the
DSC or any person authorised on behalf of the subscriber. However, the subscriber must be given an
opportunity to be heard if the DSC is to be suspended for a period exceeding fifteen days. The CA shall
communicate the suspension to the subscriber.
There are two cases in which the DSC can be revoked. Firstly, as per Section 38 (1), it may be revoked either
on the request or death of the subscriber or when the subscriber is a firm or company, on the dissolution of the
firm or winding up of the company. Secondly, according to Section 38(2), the CA may sue moto revoke it if
some material fact in the DSC is false or has been concealed by the subscriber or the requirements for issue of
the DSC are not fulfilled or the subscriber has been declared insolvent or dead et al. A notice of suspension or
revocation of the DSC must be published by the CA in a repository specified in the DSC.
Penalties for Computer Crimes
As per the Act, civil liability and stringent criminal penalties may be imposed on any person who causes
damage to a computer or computer system. The offender would be liable to pay compensation not exceeding
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10. Rs.1 Crore (10 million) for gaining unauthorized access to a computer or computer system, damaging it,
introducing a virus in the system, denying access to an authorized person or assisting any person in any of the
above activities.
Furthermore, the Act also defines specific penalties for violation of its provisions or of any rules or regulations
made there under. However, if any person contravenes any rules or regulations framed under the Act for which
no specific penalty is prescribed, he will be liable to pay compensation not exceeding Rs. 25,000.
Moreover, any person who intentionally or knowingly tampers with computer source documents would be
penalized with imprisonment up to three years or a fine of up to Rs. 2 lakh or both. In simpler terminology,
hacking is made punishable.
The Act also disallows the publishing and dissemination of obscene information and material. The introduction
of this provision should curtail pornography over the net. Any person who disobeys this provision will be
punishable with imprisonment of two years and a fine of Rs. 25,000 for the first conviction. In the event of a
subsequent conviction, the imprisonment is five years and the fine double to Rs. 50,000.
The Controller has the power to issue directions for complying with the provisions of the Act. Failure to
comply with his directions is punishable. Moreover, the interference with protected systems or the reluctance to
assist a Government Agency to intercept information in order to protect state sovereignty and security is also
made punishable.
The adjudicating court also has the powers to confiscate any computer, computer system, floppies, compact
disks, tape drives or any accessories in relation to which any provisions of the Act are being violated. No
penalty or confiscation made under this Act will affect the imposition of any other punishment under any other
law in force.
If penalties that are imposed under the Act are not paid, they will be recovered, as arrears of land revenue and
the licence or DSC shall be suspended till the penalty is paid.
Adjudicating Officers
The Central Government shall appoint an officer not below the rank of Director to the Government of India or
equivalent officer of the State Government as an adjudicating officer to adjudicate upon any inquiry in
connection with the contravention of the Act. Such officer must have the legal and judicial experience as may
be prescribed by the Central Government in that behalf.
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11. The Adjudicating Officer must give the accused person an opportunity to be heard and after being satisfied that
he has violated the law, penalise him according to the provisions of the Act. While adjudicating, he shall have
certain powers of a Civil Court.
Cyber Regulations Appellate Tribunal (CRAT)
A Cyber Regulations Appellate Tribunal (CRAT) is to be set up for appeals from the order of any adjudicating
officer. Every appeal must be filed within a period of forty-five days from the date on which the person
aggrieved receives a copy of the order made by the adjudicating officer. The appeal must be the appropriate
form and accompanied by the prescribed fee. An appeal may be allowed after the expiry of forty-five days if
sufficient cause is shown.
The appeal filed before the Cyber Appellate Tribunal shall be dealt with by it as expeditiously as possible and
endeavour shall be made by it to dispose of the appeal finally within six months from the date of receipt of the
appeal. The CRAT shall also have certain powers of a civil court.
As per Section 61, no court shall have the jurisdiction to entertain any matter that can be decided by the
adjudicating officer or the CRAT. However, a provision has been made to appeal from the decision of the
CRAT to the High Court within sixty days of the date of communication of the order or decision of the CRAT.
The stipulated period may be extended if sufficient cause is shown. The appeal may be made on either any
question of law or question of fact arising from the order.
Police Powers
A police officer not below the rank of deputy superintendent of police has the power to enter any public place
and arrest any person without warrant if he believes that a cyber crime has been or is about to be committed.
This provision may not turn to be very effective for the simple reason that most of the cyber crimes are
committed from private places such as one’s own home or office. Cyber-cafés and public places are rarely used
for cyber crimes. However, if the Act did give the police department powers to enter people’s houses without
search warrants, it would amount to an invasion of the right to privacy and create pandemonium. Keeping this
in mind, the Legislature has tried to balance this provision so as to serve the ends of justice and at the same
time, avoid any chaos.
On being arrested, the accused person must, without any unnecessary delay, be taken or sent to the magistrate
having jurisdiction or to the officer-in-charge of a police station. The provisions of the Code of Criminal
Procedure, 1973 shall apply in relation to any entry, search or arrest made by the police officer.
Network Service Providers not liable in certain cases
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12. To quote Section 78, it states:
"For the removal of doubts, it is hereby declared that no person providing any service as a network service
provider shall be liable under this Act, rules or regulations made there under for any third party information or
data made available by him if he proves that the offence or contravention was committed without his
knowledge or that he had exercised all due diligence to prevent the commission of such offence or
contravention."
"Explanation. For the purposes of this section,
(a) Network service provider means an intermediary;
(b) Third party information means any information dealt with by a network service provider in his capacity as an
intermediary."
Thus a plain reading of the section indicates that if the network service provider is unable to prove its innocence
or ignorance, it will be held liable for the crime.
Possible Uses of E-Governance-
The future of e-governance is very bright. With the help of information technology, the daily matters can be
effectively taken care of irrespective of the field covered by it. For instance, the Delhi Police Headquarter has
launched a website, which can be used for lodging a First Information Report Similarly; the Patna High Court
has taken a bold step of granting bail on the basis of an online bail application. The educational institutions,
including universities, are issuing admission forms electronically, which can be downloaded from their
respective websites. The results of examinations of various educational institutions, both school level and
university level, are available online, which can be obtained without any trouble. These are but some of the
instances of the use of technology for a better e-governance. The beneficial concept of e-governance can be
utilized for the following purposes:
• To have access to public documents.
• For making online payments of various bills and dues.
• To file statutory documents online.
• To file the complaints, grievances and suggestions of citizens online.
• The online facility can be used to enter into a partnership the appropriate government in cases of government
contracts.
• The citizens can use the online facility to file their income tax returns.
• The citizens will enjoy the facility of online services.
Digital Signature
Digital Signature means authentication of any electronic record by a subscriber by means of an electronic
method or procedure.
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13. Rapid developments in e-business pose a growing need for online security and authentication. Many emerging
technologies are being developed to provide online authentication. The major concern in e-business transactions
is the need for the replacement of the hand-written signature with an online’ signature. The traditional e-mail
system, which has problems of message integrity and non-repudiation, does not fulfil the basic requirements for
an online signature. Further, since the Internet communication system is prone to various types of security
breaches, the discussion of robust and authenticated e-business transactions is incomplete without consideration
of ‘security’ as a prominent aspect of ‘online signatures’.
One may consider an e-signature as a type of electronic authentication. Such authentication can be achieved by
means of different types of technologies. A Digital Signature (DS) can be considered as a type of e-signature,
which uses a particular kind of technology that is DS technology.DS technology involves encrypting messages
in such a way that only legitimate parties are able to decrypt the message. Two separate but interrelated ‘keys’
carry out this process of encryption and decryption.
One party in the transactions holds the secret key, or the private key, and the other party holds the public key or
the key with wide access. The selection and use of an encryption technique plays a crucial role in the design
and development of keys. In short, a DS satisfies all the functions, such as authenticity, non-repudiation, and
security, of a hand-written signature. Such a ‘signature’ can be viewed as a means of authentication and can be
owned by an individual. While using this technology, there must be third party involvement orders to handle
the liability issues that may be raised by bilateral transactions. With this existing legal infrastructure and the
rapid emergence of software security products, it is important to understand the role of emerging technologies
like DS in e-business. One of the major indicators of technological improvements is the market development
and commercialization of that technology.
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14. Introduction to Cyber Crime
The first recorded cyber crime took place in the year 1820! That is not surprising considering the fact that the
abacus, which is thought to be the earliest form of a computer, has been around since 3500 B.C. in India, Japan
and China. The era of modern computers, however, began with the analytical engine of Charles Babbage. Cyber
crime is an evil having its origin in the growing dependence on computers in modern life. In a day and age
when everything from microwave ovens and refrigerators to nuclear power plants is being run on computers,
cyber crime has assumed rather sinister implications. Major Cyber crimes in the recent past include the
Citibank rip off. US $ 10 million were fraudulently transferred out of the bank and into a bank account in
Switzerland. A Russian hacker group led by Vladimir Kevin, a renowned hacker, perpetrated the attack. The
group compromised the bank's security systems. Vladimir was allegedly using his office computer at AO
Saturn, a computer firm in St. Petersburg, Russia, to break into Citi bank computers. He was finally arrested on
Heathrow airport on his way to Switzerland.
United Nations’ Definition of Cybercrime
Cybercrime spans not only state but national boundaries as well. Perhaps we should look to international
organizations to provide a standard definition of the crime. At the Tenth United Nations Congress on the
Prevention of Crime and Treatment of Offenders, in a workshop devoted to the issues of crimes related to
computer networks, cybercrime was broken into two categories and defined thus:
a. Cybercrime in a narrow sense (computer crime): Any illegal behaviour directed by means of electronic
operations that targets the security of computer systems and the data processed by them.
b. Cybercrime in a broader sense (computer-related crime): Any illegal behaviour committed by means of, or in
relation to, a computer system or network, including such crimes as illegal possession [and] offering or
distributing information by means of a computer system or network.
Of course, these definitions are complicated by the fact that an act may be illegal in one nation but not in
another.
There are more concrete examples, including
i. Unauthorized access
ii Damage to computer data or programs
iii Computer sabotage
iv Unauthorized interception of communications
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15. v Computer espionage
These definitions, although not completely definitive, do give us a good starting point—one that has some
international recognition and agreement—for determining just what we mean by the term cybercrime.
In Indian law, cyber crime has to be voluntary and wilful, an act or omission that adversely affects a person or
property. The IT Act provides the backbone for e-commerce and India’s approach has been to look at e-
governance and e-commerce primarily from the promotional aspects looking at the vast opportunities and the
need to sensitize the population to the possibilities of the information age. There is the need to take in to
consideration the security aspects.
In the present global situation where cyber control mechanisms are important we need to push cyber laws.
Cyber Crimes are a new class of crimes to India rapidly expanding due to extensive use of internet. Getting the
right lead and making the right interpretation are very important in solving a cyber crime. The 7 stage
continuum of a criminal case starts from perpetration to registration to reporting, investigation, prosecution,
adjudication and execution. The system cannot be stronger than the weakest link in the chain. In India, there
are 30 million policemen to train apart from 12,000 strong Judiciary. Police in India are trying to become cyber
crime savvy and hiring people who are trained in the area. Each police station in Delhi will have a computer
soon which will be connected to the Head Quarter.. The pace of the investigations however can be faster;
judicial sensitivity and knowledge need to improve. Focus needs to be on educating the police and district
judiciary. IT Institutions can also play a role in this area.
Technology nuances are important in a spam infested environment where privacy can be compromised and
individuals can be subjected to become a victim unsuspectingly. We need to sensitize our investigators and
judges to the nuances of the system. Most cyber criminals have a counter part in the real world. If loss of
property or persons is caused the criminal is punishable under the IPC also. Since the law enforcement agencies
find it is easier to handle it under the IPC, IT Act cases are not getting reported and when reported are not
necessarily dealt with under the IT Act. A lengthy and intensive process of learning is required.
A whole series of initiatives of cyber forensics were undertaken and cyber law procedures resulted out of it.
This is an area where learning takes place every day as we are all beginners in this area. We are looking for
solutions faster than the problems can get invented. We need to move faster than the criminals. The real issue is
how to prevent cyber crime. For this, there is need to raise the probability of apprehension and conviction. India
has a law on evidence that considers admissibility, authenticity, accuracy, and completeness to convince the
judiciary. The challenge in cyber crime cases includes getting evidence that will stand scrutiny in a foreign
court.
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16. For this India needs total international cooperation with specialised agencies of different countries. Police has to
ensure that they have seized exactly what was there at the scene of crime, is the same that has been analysed
and the report presented in court is based on this evidence. It has to maintain the chain of custody. The threat is
not from the intelligence of criminals but from our ignorance and the will to fight it. The law is stricter now on
producing evidence especially where electronic documents are concerned.
The computer is the target and the tool for the perpetration of crime. It is used for the communication of the
criminal activity such as the injection of a virus/worm which can crash entire networks.
The Information Technology (IT) Act, 2000, specifies the acts which have been made punishable. Since the
primary objective of this Act is to create an enabling environment for commercial use of I.T., certain omissions
and commissions of criminals while using computers have not been included. With the legal recognition of
Electronic Records and the amendments made in the several sections of the IPC vide the IT Act, 2000, several
offences having bearing on cyber-arena are also registered under the appropriate sections of the IPC.
Cybercrime is not on the decline. The latest statistics show that cybercrime is actually on the rise. However, it is
true that in India, cybercrime is not reported too much about. Consequently there is a false sense of
complacency that cybercrime does not exist and that society is safe from cybercrime. This is not the correct
picture. The fact is that people in our country do not report cybercrimes for many reasons. Many do not want to
face harassment by the police. There is also the fear of bad publicity in the media, which could hurt their
Reputation and standing in society. Also, it becomes extremely difficult to convince the police to register any
cybercrime, because of lack of orientation and awareness about cybercrimes and their registration and handling
by the police.
A recent survey indicates that for every 800 cybercrime incidents that take place, only 50 are reported to the
police and out of that only one is actually registered. These figures indicate how difficult it is to convince the
police to register a cybercrime. The establishment of cybercrime cells in different parts of the country was
expected to boost cybercrime reporting and prosecution. However, these cells haven’t quite kept up with
expectations. Netizens should not be under the impression that cybercrime is vanishing and they must realize
that with each passing day, cyberspace becomes a more dangerous place to be in, where criminals roam freely
to execute their criminals intentions encouraged by the so called anonymity that internet provides.
The absolutely poor rate of cyber crime conviction in the country has also not helped the cause of regulating
cybercrime. There have only been few cybercrime convictions in the whole country, which can be counted on
fingers. We need to ensure that we have specialized procedures for prosecution of cybercrime cases so as to
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17. tackle them on a priority basis. This is necessary so as to win the faith of the people in the ability of the system
to tackle cybercrime. We must ensure that our system provides for stringent punishment of cybercrimes and
cyber criminals so that the same acts as a deterrent for others.
What is a Computer Crime?
a. Criminals Can Operate Anonymously Over the Computer Networks.
1. Be careful about talking to "strangers" on a computer network. Who are these people anyway? Remember
that people online may not be who they seem at first. Never respond to messages or bulletin board items that
are: Suggestive of something improper or indecent; Obscene, filthy, or offensive to accepted standards of
decency; Belligerent, hostile, combative, very aggressive; and Threaten to do harm or danger towards you or
another
2. Tell a grown-up right away if you come across any information that makes you feel uncomfortable.
3. Do not give out any sensitive or personal information about you or your family in an Internet "chat room."
Be sure that you are dealing with someone you and your parents know and trust before giving out any personal
information about yourself via e-mail.
4. Never arrange a face-to-face meeting without telling your parents or guardians. If your parent or guardian
agrees to the meeting, you should meet in a public place and have a parent or guardian go with you.
b. Hackers Invade Privacy
1. Define a hacker –
A hacker is someone who breaks into computers sometimes to read private e-mails and other files.
2. What is your privacy worth? What information about you or your parents do you think should be considered
private?
For example, medical information, a diary, your grades, how much money your parents owe, how much money
your family has in as savings account or in a home safe, and your letters to a friend. Would this kind of invasion
of your privacy be any different than someone breaking into your school locker or your house to get this
information about you and your family?
c. Hackers Destroy "Property" in the Form of Computer Files or Records
1. Hackers delete or alter files
2. When you write something, like a term paper or report, how important is it to be able to find it again?
Would this be different if someone broke into your locker and stole your term paper?
3. How important is it that data in computers like your term paper, a letter, your bank records, and medical
records, not be altered? How important is it for a drug company or a pharmacy to not have its computer
files altered or deleted by hackers? What would happen if a hacker altered the chemical formulas for
prescription drugs, or theflight patterns and other data in air traffic control computers? What does the term
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18. "tamper" mean? To interfere in a harmful way or to alter improperly. Is tampering with computer files
different from tampering that occurs on paper files or records?
d. Hackers Injure Other Computer Users by Destroying Information Systems
1. Hackers cause victims to spend time and money checking and re-securing systems after break-in. They
also cause them to interrupt service. They think its fine to break-in and snoop in other people's files as long
as they don't alter anything. They think that no harm has been done.
2. Hackers steal telephone and computer time and share unauthorized access codes and passwords. Much
of the stealing is very low-tech."Social engineering" is a term used among crackers for cracking techniques
that rely on weaknesses in human beings rather than on software. "Dumpster diving" is the practice of
sifting refuse from an office or technical installation to extract confidential data, especially security
compromising information. Who do you think pays for this? How much stealing of computer time do you
thinks there is? For example, there is $2 billion annually in telephone toll fraud alone. Would you want
someone going through your garbage? Have you ever thrown away private papers or personal notes.
3. Hackers crash systems that cause them to malfunction and not work.
How do we use computer information systems in our daily lives? What could happen if computers suddenly
stopped working? For example, would public health and safety be disrupted and lives are endangered if
computers went down?
e. Computer "Pirates" Steal Intellectual Property
1. Intellectual property is the physical expression of ideas contained in books, music, plays, movies, and
computer software. Computer pirates steal valuable property when they copy software, usic,
graphics/pictures, movies, books (all available on the Internet).
2. How is the person who produced or developed these forms of entertainment harmed? Is this different
from stealing a product (computer hardware) which someone has invented and manufactured? Who pays
for this theft?
3. It may seem simple and safe to copy recordings, movies and computer programs by installing a peer-to-
peer (P2P) file sharing software program. However, most material that you may want to copy is protected
by copyright which means that you are restricted from making copies unless you have permission to do so.
Making copies of intellectual property including music, movies and software--without the right to do so is
illegal. P2P software and the files traded on the P2Pnetworks may also harm your computer by installing
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19. viruses or spyware, or allow others to access the files contained on your hard drive beyond those you
intend to share.
4. Copyright violations have civil and criminal remedies.
a. Civil remedy: copyright holder can sue infringer for money to cover loss of sales or other loss caused by
infringement.
b.Criminal remedy: jail or fine paid to the government (not copyright holder) where person infringes a
copyright for commercial advantage or private gain. For example, a person who makes multiple copies of a
video, and sell the copies.
Defining Cyber Crime
Defining cyber crimes, as "acts that are punishable by the Information Technology Act" would be unsuitable as the
Indian Penal Code also covers many cyber crimes, such as email spoofing and cyber defamation, sending
threatening emails etc. A simple yet sturdy definition of cyber crime would be "unlawful acts wherein the computer
is either a tool or a target or both".
Financial crimes
This would include cheating, credit card frauds, money laundering etc.To cite a recent case, a website offered to sell
Alphonso mangoes at a throwaway price. Distrusting such a transaction, very few people responded to or supplied
the website with their credit card numbers. These people were actually sent the Alphonso mangoes. The word about
this website now spread like wildfire. Thousands of people from all over the country responded and ordered
mangoes by providing their credit card numbers. The owner’s of what was later proven to be a bogus website then
fled taking the numerous credit card numbers and proceeded to spend huge amounts of money much to the chagrin
of the card owners.
Cyber pornography
This would include pornographic websites; pornographic magazines produced using computers (to publish and print
the material) and the Internet (to download and transmit pornographic pictures, photos, writings etc). Recent Indian
incidents revolving around cyber pornography include the Air Force Balbharati School case. A student of the Air
Force Balbharati School, Delhi, was teased by all his classmates for having a pockmarked face. Tired of the cruel
jokes, he decided to get back at his tormentors. He scanned photographs of his classmates and teachers, morphed
them with nude photographs and put them up on a website that he uploaded on to a free web hosting service. It was
only after the father of one of the class girls featured on the website objected and lodged a complaint with the police
that any action was taken.
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20. In another incident, in Mumbai a Swiss couple would gather slum children and then would force them to appear for
obscene photographs. They would then upload these photographs to websites specially designed for paedophiles.
The Mumbai police arrested the couple for pornography.
Sale of illegal articles
This would include sale of narcotics, weapons and wildlife etc., by posting information on websites, auction
websites, and bulletin boards or 167simply by using email communication. E.g. many of the auction sites even in
India are believed to be selling cocaine in the name of 'honey'.
Phishing
In computing, phishing (also known as carding and spoofing) is a form of social engineering, characterized by
attempts to fraudulently acquire sensitive information, such as passwords and credit card details, by masquerading as
a trustworthy person or business in an apparently official electronic communication, such as an email or an instant
message. The term phishing arises from the use of increasingly sophisticated lures to "fish" for users' financial
information and passwords.
Online gambling
There are millions of websites; all hosted on servers abroad, that offer online gambling. In fact, it is believed that
many of these websites are actually fronts for money laundering.
Intellectual Property crimes
These include software piracy, copyright infringement, trademarks violations, theft of computer source code etc.
Email spoofing
A spoofed email is one that appears to originate from one source but actually has been sent from another source. E.g.
Pooja has an e-mail addresspooja@asianlaws.org. Her enemy, Sameer spoofs her e-mail and sends obscene
messages to all her acquaintances. Since the e-mails appear to have originated from Pooja, her friends could take
offence and relationships could be spoiled for life. Email spoofing can also cause monetary damage. Inan American
case, a teenager made millions of dollars by spreading false information about certain companies whose shares he
had short sold. This misinformation was spread by sending spoofed emails, purportedly from news agencies like
Reuters, to share brokers and investors who were informed that the companies were doing very badly. Even after the
truth came out the values of the shares did not go back to the earlier levels and thousands of investors lost a lot of
money.
Forgery
Counterfeit currency notes, postage and revenue stamps, mark sheet set can be forged using sophisticated computers,
printers and scanners. Outside many colleges across India, one finds touts soliciting the sale of fake mark sheets or
even certificates. These are made using computers, and high quality scanners and printers. In fact, this has becoming
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21. a booming business involving thousands of Rupees being given to student gangs in exchange for these bogus but
authentic looking certificates.
Cyber Defamation
This occurs when defamation takes place with the help of computers and or the Internet. E.g. someone publishes
defamatory matter about someone on a website or sends e-mails containing defamatory information to all of that
person's friends.
Cyber stalking
The Oxford dictionary defines stalking as "pursuing stealthily". Cyber talking involves following a person's
movements across the Internet by posting messages (sometimes threatening) on the bulletin boards frequented by the
victim, entering the chat-rooms frequented by the victim, constantly bombarding the victim with emails etc.
Frequently Used Cyber Crimes Unauthorized access to computer systems or networks
This activity is commonly referred to as hacking. The Indian law hash owever given a different connotation to the
term hacking, so we will not usethe term "unauthorized access" interchangeably with the term "hacking”. Theft of
information contained in electronic form this includes information stored in computer hard disks, removable storage
media etc
Email bombing
Email bombing refers to sending a large number of emails to the victim resulting in the victim's email account (in
case of an individual) or mail servers (in case of a company or an email service provider) crashing.
Some of the major email related crimes are:
1. Email spoofing
2. Sending malicious codes through email
3. Email bombing
4. Sending threatening emails
5. Defamatory emails
6. Email frauds
Data diddling
This kind of an attack involves altering raw data just before it is processed by a computer and then changing it back
after the processing is completed. Electricity Boards in India have been victims to data diddling programs inserted
when private parties were computerizing their systems.
Salami attacks
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22. These attacks are used for the commission of financial crimes. The key here is to make the alteration so insignificant
that in a single case it would go completely unnoticed.
Denial of Service attack
This involves flooding a computer resource with more requests than it can handle. This causes the resource (e.g. a
web server) to crash thereby denying authorized users the service offered by the resource. Another variation to a
typical denial of service attack is known as a Distributed Denial of Service (DDoS) attack wherein the perpetrators
are many and are geographically widespread. It is very difficult to control such attacks. The attack is initiated by
sending excessive demands to the victim's computer(s), exceeding the limit that the victim's servers can support and
making the server’s crash.
Virus / worm attacks
Viruses are programs that attach themselves to a computer or a file and then circulate themselves to other files and to
other computers on a net work. They usually affect the data on a computer, either by altering or deleting it. Worms,
unlike viruses do not need the host to attach themselves to. They merely make functional copies of themselves and
do this repeatedly till they eat up all the available space on a computer's memory
Logic bombs
These are event dependent programs. This implies that these programs are created to do something only when a
certain event (known as a trigger event) occurs. E.g. even some viruses may be termed logic bombs because they lie
dormant all through the year and become active only on a particular date
Trojan attacks
A Trojan as this program is aptly called is an unauthorized program which functions from inside what seems to be
an authorized program, thereby concealing what it is actually doing.
Internet time thefts
This connotes the usage by an unauthorized person of the Internet hours paid for by another person. In a case
reported before the enactment of the Information Technology Act, 2000 Colonel Bajwa, a resident of New Delhi,
asked a nearby net cafe owner to come and set up his Internet connection. For this purpose, the net cafe owner
needed to know his username and password. After having set up the connection he went away with knowing the
present username and password. He then sold this information to another net cafe. One week later Colonel Bajwa
found that his Internet hours were almost over. Out of the 100 hours that he had bought, 94 hours had been used up
within the span of that week. Surprised, he reported the incident to the Delhi police. The police could not believe
that time could be stolen. They were not aware of the concept of time-theft at all. Colonel Bajwa's report was
rejected. He decided to approach The Times of India, New Delhi. They, in turn carried are port about the inadequacy
of the New Delhi Police in handling cybercrimes. The Commissioner of Police, Delhi then took the case into his
own hands and the police under his directions raided and arrested the net cafe owner under the charge of theft as
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23. defined by the Indian Penal Code. The net cafe owner spent several weeks locked up in Tihar jail before being
granted bail
Web jacking
This occurs when someone forcefully takes control of a website (by cracking the password and later changing it).
The actual owner of the website does not have any more control over what appears on that website in a recent
incident reported in the USA the owner of a hobby website for children received an e-mail informing her that a
group of hackers had gained control over her website.
Theft of computer system This type of offence involves the theft of a computer, some parts of a computer or a
peripheral attached to the computer. Physically damaging a computer system. This crime is committed by physically
damaging a Computer or its peripherals.
Cyber Criminals
Kids (age group 9-16 etc.)
It seems really difficult to believe but it is true. Most amateur hackers and cyber criminals are teenagers. To them,
who have just begun to understand what appears to be a lot about computers, it is a matter of pride to have hacked
into a computer system or a website. There is also that little issue of appearing really smart among friends. These
young rebels may also commit cyber crimes without really knowing that they are doing anything wrong.
Organized hacktivists
Hacktivists are hackers with a particular (mostly political) motive. In other cases this reason can be social activism,
religious activism, etc. The attacks on approximately 200 prominent Indian websites by a group of hackers known as
Pakistani Cyber Warriors are a good example of political hacktivists at work.
Disgruntled employees
One can hardly believe how spiteful displeased employees can become. Till now they had the option of going on
strike against their bosses. Now, with the increase independence on computers and the automation of processes, it is
easier for disgruntled employees to do more harm to their employers by committing computer related crimes, which
can bring entire systems down.
Professional hackers (corporate espionage)
Extensive computerization has resulted in business organizations storing all their information in electronic form.
Rival organizations employ hackers to steal industrial secrets and other information that could be beneficial to them.
The temptation to use professional hackers for industrial espionage also stems from the fact that physical presence
required to gain access to important documents is rendered needless if hacking can retrieve those.
Denial of Service Tools
Denial-of-service (or DoS) attacks are usually launched to make a particular service unavailable to someone who is
authorized to use it. These attacks may be launched using one single computer or many computers across the world.
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24. In the latter scenario, the attack is known as a distributed denial of service attack. Usually these attacks do not
necessitate the need to get access into anyone's system.
These attacks have been getting decidedly more popular as more and more people realize the amount and magnitude
of loss, which can be caused through them.
What are the reasons that a hacker may want to resort to a DoS attack? He may have installed a Trojan in the
victim's computer but needed to have the computer restarted to activate the Trojan. The other good reason also may
be that a business may want to harm a competitor by crashing his systems.
Denial-of-service attacks have had an impressive history having, in the past, blocked out websites like Amazon,
CNN, Yahoo and eBay. The attack is initiated by sending excessive demands to the victim's computer's, exceeding
the limit that the victim's servers can support and making the server’s crash. Sometimes, many computers are
entrenched in this process by installing a Trojan on them; taking control of them and then making them send
numerous demands to the targeted computer. On the other side, the victim of such an attack may see many such
demands (sometimes even numbering tens of thousands) coming from computers from around the world.
Unfortunately, to be able to gain control over a malicious denial-of-service attack would require tracing all the
computers involved in the attack and then informing the owners of those systems about the attack. The compromised
system would need to be shut down or then cleaned. This process, which sounds fairly simple, may prove very
difficult to achieve across national and later organizational borders.
Even when the source(s) of the attack are traced there are many problems, which the victim may be faced with. He
will need to inform all the involved organizations in control of the attacking computers and ask them to either clean
the systems or shut them down. Across international boundaries this may prove to be a titanic task. The staff of the
organization may not understand the language. They may not be present if the attack were to be launched during the
night or during weekends.
The computers that may have to be shut down may be vital for their processes and the staff may not have the
authority to shut them down. The staff may not understand the attack, system administration, network topology, or
any number of things that may delay or halt shutting down the attacking computers. Or, more simply, the
organization may not have the desire to help.
If there are hundreds or even thousands of computers on the attack, with problems like the ones mentioned above,
the victim may not be able to stop the attack for days by which time the damage would have been done. His servers
would be completely incapacitated to administer to so many demands and consequently would crash. It is very
simple for anyone to launch an attack because denial-of-service tools can easily be procured from the Net. The
major versions of distributed denial of service attack tools are Trinoo (or trin00), TFN, TFN2Kand Stacheldraht.
Denial-of-Service tools allow the attackers to automate and preset the times and frequencies of such attacks so that
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25. the attack is launched and then stopped to be launched once again later. This makes it very difficult, in fact almost
impossible, to trace the source of the attack.
These tools also provide another service by which the attacking computer can change its source address randomly
thereby making it seem as if the attack is originating from many thousands of computers while in reality there may
be only a few. Distributed denial-of-service attacks are a very perturbing problem for law enforcement agencies
mainly because they are very difficult to trace. In addition, usually these attacks are directed towards very sensitive
systems or networks sometimes even those that are vital to national security. Sometimes, even when the perpetrators
can be traced, international extradition laws may prove to be a hitch in bringing them under the authority of the law.
As seen above that how the cyber crime have been escalating in the India and the damage it can do to a company,
hence to protect the importance of privacy of a company the government of India realized the significance to create
a governance to regulate and keep a tab on the activity of cyber crime. The main aim to create the Information
Technology Act 2000 was to safeguard a business organization from cyber crime
25

26. Facts and Figures
In 2006, this number more than doubled to 200 incidents. Not only
were attacks being launched in India but 2006 saw the maximum phishing
attacks being launched from India on other countries as well. Security expert, Surinder Singh says, 'As per
Web-sense Security Lab, we find that at any given point in time in 2006, there were 2 to 300 websites
being hosted. There was a spurt in October where we identified 790 websites
which were hosted in India and being used to carry out attacks.
”The United States remains at the top with 28.78% of all phishing sites
located out of the United States and 11.96% out of China. Korea, Germany,
Australia, Canada, Japan, United Kingdom, Italy and India are the other
countries where phishing attacks are prevalent. As of now, 2.11% of the
phishing sites are located in India.
Singh says, 'India on the threshold of having more and more people getting into online banking or taking online
personal loans. So, it won't be a surprise if someday someone tells me that out of the total size of frauds
happening - India would be at 1% or 2% - but even that would be Rs 200 crore.”
420 cases were registered under IT Act during the year 2009 as compared to 288 cases during the previous year
(2008) thereby reporting an increase of 45.8% in 2009 over 2008. 23.1% cases (97 out of 420 cases) were
reported from Karnataka followed by Kerala (64), Maharashtra (53), Andhra Pradesh (30) and Punjab (28).
33.1% (139 cases) of the total 420 cases registered under IT Act 2000 were related to obscene
publication/transmission in electronic form, normally known as cyber pornography. 141 persons were
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27. arrested for committing such offences during 2009. There were 233 cases of Hacking with
Computer Systems during the year wherein 107 persons were arrested.
Out of the total (233) Hacking cases, the cases relating to Loss / Damage of computer resource/utility under
Sec 66(1) of the IT Act were 49.4% (115 cases) whereas the cases related to Hacking under Section 66(2) of IT
Act were 50.6% (118 cases). Maharashtra (25),Andhra Pradesh (21) and Kerala (15) registered maximum cases
under Sec 66(1) of the IT Act out of total 115 such cases at the National level. Out of the total 118 cases
relating to Hacking under Sec. 66(2), most of the cases (91 cases) were reported from Karnataka followed by
Tamil Nadu (8) and Madhya Pradesh (6). 27.1% of the 288 persons arrested in cases relating to IT Act,2000
were from Maharashtra (78) followed by Kerala (47). The age-wise profile of persons arrested in Cyber Crime
cases under IT Act, 2000 showed that 64.6% of the offenders were in the age group 18 – 30 years (186 out of
288) and 28.8% of the offenders were in the age group 30 - 45 years (83 out of 288). Maharashtra (6) and
Kerala (4) reported offenders whose age was below 18 years.
Crime head-wise and age- group wise profile of the offenders arrested under IT Act, 2000 reveals that 49.0%
(141 out of 288) of the offenders arrested were under ‘Obscene publication/ transmission in electronic form’ of
which 68.1% (96 out of 141) were in the age-group 18 –30 years. 57.9% (62 out of 107) of the total persons
arrested for 'Hacking with Computer Systems' were in the age-group of 18 - 30 years.
Cyber Crimes – Cases of Various Categories under IPC Section
A total of 276 cases were registeredunder IPC Sections during the year 2009 as compared to 176 such
cases during 2008 thereby reporting an increase of 56.8%.Maharashtrareported maximum number of such cases
(108 out of 276 cases or 39.1%) followed by Chhattisgarh 16.7% (46 cases) and Punjab 10.1% (28 cases).
Majority of the crimes out of total 276 cases registered under IPC fall under 2 categories viz. Forgery (158) and
Criminal Breach of Trust or Fraud (90). Although such offences fall under the traditional IPC crimes, these cases
had the cyber overtones wherein computer, Internet or its enabled services were present in the crime and hence
they were categorised as Cyber Crimes under IPC. The Cyber Forgery (158 cases) accounted for 0.21% out of
the 72,718 cases reported under Cheating. The Cyber Frauds (90) accounted for 0.55% of the total Criminal
Breach of Trust cases under IPC (16,326).
The Crime head and State / UT-wise analysis of Cyber Crimes under IPC are presented in Table 18.7. The
Cyber Forgery cases were the highest in Maharashtra (67) followed by Chhattisgarh (32) and Gujarat (13). The
cases of Cyber Fraud were highest in Maharashtra (30) followed by Punjab (19) and Gujarat & Tamil Nadu (11
each). A total of 263 persons were arrested in the country for Cyber Crimes under IPC during 2009. 61.2%
offenders (161) of these were taken into custody for offences under 'Cyber Forgery’, 30.0% (79) for 'Criminal
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28. Breach of Trust/Fraud' and 8.7% (23) for 'Counterfeiting'.
The States such as Maharashtra (89), Punjab (48), and Chhattisgarh (44) have reported higher arrests for Cyber
Crimes registered under IPC. The age group-wise profile of the arrested persons under this category showed
that 45.2% (119 out of 263) were in the age-group of 30 - 45 years and41.8% (110 out of 263) of the offenders
were in the age-group of 18-30 years. No offenders were below 18 years of age.
Crime head-wise and age wise profile of the offenders arrested under Cyber Crimes (IPC) (Table18.5) for the
year 2009 reveals that offenders involved in Forgery cases were more in the age-group of 18 -30 (47.2%) (76
out of 161). 49.4% of the persons arrested under Criminal Breach of Trust / Cyber Fraud offences were in the
age group 30-45 years (39 out of 79).
Incidence of Cyber Crimes in Cities
14 out of 35 mega cities did not report any case of Cyber Crime i.e., neither under the IT Act nor under IPC
Sections during the year 2009.20 mega cities have reported178 cases under IT Act and 14 megacities reported
168 cases under various section of IPC. There was an
Increase of 23.6% (from 144 cases in2008 to 168 cases in 2009) in cases under IT Act as compared to previous
year (2008), and an increase of300.0% (from 42 cases in 2008 to 168 cases in 2009) of cases registered under
various sections of IPC .Bengaluru (97), Ahmadabad(10), Bhopal, Coimbatore and Kochi(6 each) and Delhi
City, Indore, Ludhiana and Pune (5 each) have reported high incidence of cases (145 out of 178 cases)
registered under IT Act, accounting for more than half of the cases (81.5%) reported under the IT Act. Nasik
has reported the highest incidence (68 out of 168 cases) of cases reported under IPC sections accounting for
40.5% followed by Mumbai (35 or 20.8%).
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29. 29

30. Indian Case Studies
1. Pune Citibank Mphasis Call Center Fraud
US $ 3, 50,000 from accounts of four US customers were dishonestly transferred to bogus accounts. This will
give a lot of ammunition to those lobbying against outsourcing in US. Such cases happen all over the world but
when it happens in India it are a serious matter and we cannot ignore it. It is a case of sourcing engineering.
Some employees gained the confidence of the customer and obtained their PIN numbers to commit fraud. They
got these under the guise of helping the customers out of difficult situations. Highest security prevails in the call
centres in India as they know that they will lose their business. There was not as much of breach of security but
of sourcing engineering.
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31. The call canter employees are checked when they go in and out so they cannot copy down numbers and
therefore they could not have noted these down. They must have remembered these numbers, gone out
immediately to a cyber café and accessed the Citibank accounts of the customers.
All accounts were opened in Pune and the customers complained that the money from their accounts was
transferred to Pune accounts and that’s how the criminals were traced. Police has been able to prove the honesty
of the call centre and has frozen the accounts where the money was transferred.
There is need for a strict background check of the call center executives. However, best of background checks
can not eliminate the bad elements from coming in and breaching security. We must still ensure such checks
when a person is hired. There is need for a national ID and a national data base where a name can be referred
to. In this case preliminary investigations do not reveal that the criminals had any crime history. Customer
education is very important so customers do not get taken for a ride. Most banks are guilt of not doing this.
2. Bazee.com case
CEO of Bazee.com was arrested in December 2004 because a CD with objectionable material was being sold
on the website. The CD was also being sold in the markets in Delhi. The Mumbai city police and the Delhi
Police got into action. The CEO was later released on bail. This opened up the question as to what kind of
distinction do we draw between Internet Service Provider and Content Provider. The burden rests on the
accused that he was the Service Provider and not the Content Provider. It also raises a lot of issues regarding
how the police should handle the cyber crime cases and a lot of education is required.
3. State of Tamil Nadu Vs Suhas Katti
The Case of Suhas Katti is notable for the fact that the conviction was achieved successfully within a relatively
quick time of 7 months from the filing of the FIR. Considering that similar cases have been pending in other
states for a much longer time, the efficient handling of the case which happened to be the first case of the
Chennai Cyber Crime Cell going to trial deserves a special mention.
The case related to posting of obscene, defamatory and annoying message about a divorcee woman in the
yahoo message group. E-Mails were also forwarded to the victim for information by the accused through a false
e-mail account opened by him in the name of the victim. The posting of the message resulted in annoying
phone calls to the lady in the belief that she was soliciting.
Based on a complaint made by the victim in February 2004, the Police traced the accused to Mumbai and
arrested him within the next few days. The accused was a known family friend of the victim and was reportedly
interested in marrying her. She however married another person. This marriage later ended in divorce and the
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32. accused started contacting her once again. On her reluctance to marry him, the accused took up the harassment
through the Internet.
On 24-3-2004 Charge Sheet was filed u/s 67 of IT Act 2000, 469 and 509 IPC before The Hon’ble Addl. CMM
Egmore by citing 18 witnesses and 34 documents and material objects. The same was taken on file in
C.C.NO.4680/2004. On the prosecution side 12 witnesses were examined and entire documents were marked as
Exhibits.
The Defence argued that the offending mails would have been given either by ex-husband of the complainant or
the complainant herself to implicate the accused as accused alleged to have turned down the request of the
complainant to marry her.
Further the Defence counsel argued that some of the documentary evidence was not sustainable under Section
65 B of the Indian Evidence Act. However, the court relied upon the expert witnesses and other evidence
produced before it, including the witnesses of the Cyber Cafe owners and came to the conclusion that the crime
was conclusively proved.
Ld. Additional Chief Metropolitan Magistrate, Egmore, delivered the judgement on 5-11-04 as follows:
“ The accused is found guilty of offences under section 469, 509 IPC and 67 of IT Act 2000 and the accused is
convicted and is sentenced for the offence to undergo RI for 2 years under 469 IPC and to pay fine of Rs.500/-
and for the offence u/s 509 IPC sentenced to undergo 1 year Simple imprisonment and to pay fine of Rs.500/-
and for the offence u/s 67 of IT Act 2000 to undergo RI for 2 years and to pay fine of Rs.4000/- All sentences
to run concurrently.”
The accused paid fine amount and he was lodged at Central Prison, Chennai. This is considered as the first case
convicted under section 67 of Information Technology Act 2000 in India.
4. The Bank NSP Case
The Bank NSP case is the one where a management trainee of the bank was engaged to be married. The couple
exchanged many emails using the company computers. After some time the two broke up and the girl created
fraudulent email ids such as “Indian bar associations” and sent emails to the boy’s foreign clients. She used the
banks computer to do this. The boy’s company lost a large number of clients and took the bank to court. The
bank was held liable for the emails sent using the bank’s system.
5. SMC Pneumatics (India) Pvt. Ltd. v. Jogesh Kwatra
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33. In India's first case of cyber defamation, a Court of Delhi assumed jurisdiction over a matter where a
corporate’s reputation was being defamed through emails and passed an important ex-parte injunction.
In this case, the defendant Jogesh Kwatra being an employ of the plaintiff company started sending derogatory,
defamatory, obscene, vulgar, filthy and abusive emails to his employers as also to different subsidiaries of the
said company all over the world with the aim to defame the company and its Managing Director Mr. R K
Malhotra. The plaintiff filed a suit for permanent injunction restraining the defendant from doing his illegal acts
of sending derogatory emails to the plaintiff.
On behalf of the plaintiffs it was contended that the emails sent by the defendant were distinctly obscene,
vulgar, abusive, intimidating, humiliating and defamatory in nature. Counsel further argued that the aim of
sending the said emails was to malign the high reputation of the plaintiffs all over India and the world. He
further contended that the acts of the defendant in sending the emails had resulted in invasion of legal rights of
the plaintiffs. Further the defendant is under a duty not to send the aforesaid emails. It is pertinent to note
that after the plaintiff company discovered the said employ could be indulging in the matter
of sending abusive emails, the plaintiff terminated the services of the defendant.
After hearing detailed arguments of Counsel for Plaintiff, Hon'ble Judge of the Delhi High Court passed an ex-
parte ad interim injunction observing that a prima facie case had been made out by the plaintiff. Consequently,
the Delhi High Court restrained the defendant from sending derogatory, defamatory, obscene, vulgar,
humiliating and abusive emails either to the plaintiffs or to its sister subsidiaries all over the world including
their Managing Directors and their Sales and Marketing departments. Further, Hon'ble Judge also restrained
the defendant from publishing, transmitting or causing to be published any information in the actual world as
also in cyberspace which is derogatory or defamatory or abusive of the plaintiffs.
This order of Delhi High Court assumes tremendous significance as this is for the first time that an Indian Court
assumes jurisdiction in a matter concerning cyber defamation and grants an ex-parte injunction restraining the
defendant from defaming the plaintiffs by sending derogatory, defamatory, abusive and obscene emails either to
the plaintiffs or their subsidiaries.
6. PARLIAMENT ATTACK CASE
Bureau of Police Research and Development at Hyderabad had handled some of the top cyber cases, including
analysing and retrieving information from the laptop recovered from terrorist, who attacked Parliament. The
laptop which was seized from the two terrorists, who were gunned down when Parliament was under siege on
December 13 2001, was sent to Computer Forensics Division of BPRD after computer experts at Delhi failed to
trace much out of its contents.
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34. The laptop contained several evidences that confirmed of the two terrorists’ motives, namely the sticker of the
Ministry of Home that they had made on the laptop and pasted on their ambassador car to gain entry into
Parliament House and the fake ID card that one of the two terrorists was carrying with a Government of India
emblem and seal.
The emblems (of the three lions) were carefully scanned and the seal was also craftly made along with
residential address of Jammu and Kashmir. But careful detection proved that it was all forged and made on the
laptop.
7. Andhra Pradesh Tax Case
Dubious tactics of a prominent businessman from Andhra Pradesh was exposed after officials of the department
got hold of computers used by the accused person.
The owner of a plastics firm was arrested and Rs 22 crore cash was recovered from his house by sleuths of the
Vigilance Department. They sought an explanation from him regarding the unaccounted cash within 10 days.
The accused person submitted 6,000 vouchers to prove the legitimacy of trade and thought his offence would
go undetected but after careful scrutiny of vouchers and contents of his computers it revealed that all of them
were made after the raids were conducted.
It later revealed that the accused was running five businesses under the guise of one company and used fake and
computerised vouchers to show sales records and save tax.
8. SONY.SAMBANDH.COM CASE
India saw its first cybercrime conviction recently. It all began after a complaint was filed by Sony India Private
Ltd, which runs a website called www.sony-sambandh.com, targeting Non Resident Indians. The website
enables NRIs to send Sony products to their friends and relatives in India after they pay for it online.
The company undertakes to deliver the products to the concerned recipients. In May 2002, someone logged
onto the website under the identity of Barbara Campa and ordered a Sony Colour Television set and a cordless
head phone.
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35. She gave her credit card number for payment and requested that the products be delivered to Arif Azim in
Noida. The payment was duly cleared by the credit card agency and the transaction processed. After following
the relevant procedures of due diligence and checking, the company delivered the items to Arif Azim.
At the time of delivery, the company took digital photographs showing the delivery being accepted by Arif
Azim.
The transaction closed at that, but after one and a half months the credit card agency informed the company that
this was an unauthorized transaction as the real owner had denied having made the purchase.
The company lodged a complaint for online cheating at the Central Bureau of Investigation which registered a
case under Section 418, 419 and 420 of the Indian Penal Code.
The matter was investigated into and Arif Azim was arrested. Investigations revealed that Arif Azim, while
working at a call centre in Noida gained access to the credit card number of an American national which he
misused on the company’s site.
The CBI recovered the colour television and the cordless head phone.
In this matter, the CBI had evidence to prove their case and so the accused admitted his guilt. The court
convicted Arif Azim under Section 418, 419 and 420 of the Indian Penal Code — this being the first time that a
cybercrime has been convicted.
The court, however, felt that as the accused was a young boy of 24 years and a first-time convict, a lenient view
needed to be taken. The court therefore released the accused on probation for one year.
The judgment is of immense significance for the entire nation. Besides being the first conviction in a
cybercrime matter, it has shown that the the Indian Penal Code can be effectively applied to certain categories
of cyber crimes which are not covered under the Information Technology Act 2000. Secondly, a judgment of
this sort sends out a clear message to all that the law cannot be taken for a ride.
9. Nasscom vs. Ajay Sood & Others
In a landmark judgment in the case of National Association of Software and Service Companies vs Ajay Sood
& Others, delivered in March, ‘05, the Delhi High Court declared `phishing’ on the internet to be an illegal act,
entailing an injunction and recovery of damages.
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36. Elaborating on the concept of ‘phishing’, in order to lay down a precedent in India, the court stated that it is a
form of internet fraud where a person pretends to be a legitimate association, such as a bank or an insurance
company in order to extract personal data from a customer such as access codes, passwords, etc. Personal data
so collected by misrepresenting the identity of the legitimate party is commonly used for the collecting party’s
advantage. court also stated, by way of an example, that typical phishing scams involve persons who pretend to
represent online banks and siphon cash from e-banking accounts after conning consumers into handing over
confidential banking details.
The Delhi HC stated that even though there is no specific legislation in India to penalise phishing, it held
phishing to be an illegal act by defining it under Indian law as “a misrepresentation made in the course of trade
leading to confusion as to the source and origin of the e-mail causing immense harm not only to the consumer
but even to the person whose name, identity or password is misused.” The court held the act of phishing as
passing off and tarnishing the plaintiff’s image.
The plaintiff in this case was the National Association of Software and Service Companies (Nasscom), India’s
premier software association.
The defendants were operating a placement agency involved in head-hunting and recruitment. In order to obtain
personal data, which they could use for purposes of headhunting, the defendants composed and sent e-mails to
third parties in the name of Nasscom. The high court recognised the trademark rights of the plaintiff and passed
an ex-parte adinterim injunction restraining the defendants from using the trade name or any other name
deceptively similar to Nasscom. The court further restrained the defendants from holding themselves out as
being associates or a part of Nasscom.
The court appointed a commission to conduct a search at the defendants’ premises. Two hard disks of the
computers from which the fraudulent e-mails were sent by the defendants to various parties were taken into
custody by the local commissioner appointed by the court. The offending e-mails were then downloaded from
the hard disks and presented as evidence in court.
During the progress of the case, it became clear that the defendants in whose names the offending e-mails were
sent were fictitious identities created by an employee on defendants’ instructions, to avoid recognition and legal
action. On discovery of this fraudulent act, the fictitious names were deleted from the array of parties as
defendants in the case. Subsequently, the defendants admitted their illegal acts and the parties settled the matter
through the recording of a compromise in the suit proceedings. According to the terms of compromise, the
defendants agreed to pay a sum of Rs1.6 million to the plaintiff as damages for violation of the plaintiff’s
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37. trademark rights. The court also ordered the hard disks seized from the defendants’ premises to be handed over
to the plaintiff who would be the owner of the hard disks.
This case achieves clear milestones: It brings the act of “phishing” into the ambit of Indian laws even in the
absence of specific legislation; It clears the misconception that there is no “damages culture” in India for
violation of IP rights; This case reaffirms IP owners’ faith in the Indian judicial system’s ability and willingness
to protect intangible property rights and send a strong message to IP owners that they can do business in India
without sacrificing their IP rights.
10. Infinity e-Search BPO Case
The Gurgaon BPO fraud has created an embarrassing situation for Infinity e-Search, the company in which Mr
Karan Bahree was employed.
A British newspaper had reported that one of its undercover reporters had purchased personal information of
1,000 British customers from an Indian call-center employee. However, the employee of Infinity eSearch, a
New Delhi-based web designing company, who was reportedly involved in the case has denied any
wrongdoing. The company has also said that it had nothing to do with the incident.
In the instant case the journalist used an intermediary, offered a job, requested for a presentation on a CD and
later claimed that the CD contained some confidential data. The fact that the CD contained such data is itself
not substantiated by the journalist.
In this sort of a situation we can only say that the journalist has used "Bribery" to induce a "Out of normal
behavior" of an employee. This is not observation of a fact but creating a factual incident by intervention.
Investigation is still on in this matter.
Conclusion
As we can see that there where so many cyber crimes happening in India
before the amendment of information technology act the rate of crime have
not stopped nor it have come down but it is reaching its high.
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38. We have try to find out various reasons that despite of such a tight act and
high penalties and punishments what are the lope holes in the act which is
blocking the proper implementation of such a force full act.
Cyber Law in India is in its infancy stage. A lot of efforts and initiatives are
required to make it a mature legal instrument. Law has been instrumental in
giving Cyber Law in India a shape that it deserves. To make the circle
complete we are proudly introducing another effort in this direction.
Following are some of the lope holes which we have tried to figure out:
1. Reporting of important matters pertaining to Cyber Law in India:
2. Analysis of Cyber Law scenario in India,
3. Providing a comprehensive database for cases and incidents related to Cyber Law in India,
4. A ready reference for problems associated with Cyber Law in India, etc.
Besides these grey areas India is also facing problems of lack of Cyber
Security in India as well as ICT Security in India. A techno-legal base is the need of the hour. Unfortunately,
we do not have a sound and secure ICT
Security Base in India and Cyber security in India is still an ignored World.
If opening of Cyber Cells and Cyber Units is Cyber Security than perhaps India
is best in the World at managing Cyber Security issues. Unfortunately ICT
Security in India is equated with face saving exercises of false claims and
redundant exercises. The truth remains that ICT Security in India is a myth
and not reality. The Cyber Law in India requires a dedicated and pro active
approach towards ICT and Cyber Security in India. In the absence of a
dedicated and sincere approach, the Cyber Law in India is going to collapse.Now as we know what are the
major lope holes in the act let us try to fine the possible suggestion to overcome these and try to learn from
what us/uk are following in order to have a virus free cyber.
Suggestion:
Recruitment
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39. There is a high need to increase the strength of staff for proper functioning of the ACT.
Red coding System
Set - up a red coding system, with the help of which the government can keep a tap on mails, chat, etc. this
system will help the government to detect the possibility of further cyber crime.
Training and Development
One of the most important requirements for the proper function of the
ACT is that, there should be good quality training programs on a regular
base.
Domain
It is necessary; Domain should be treated as a separate entity rather than treating it as IP ACT.
Cyber theft, cyber stalking, cyber harassment and cyber defamation are presently not covered under the
act. These crimes need to have specific provisions in the act to enable the police to take quick action.
Vague Definitions
Definitions, prescriptions of punishment and certain provisions (such as that dealing with hacking) need
specific amendment.
Parameters for its implementation
Law enforcement officials need to be trained for effective enforcement.
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40. Bibliography
 IT ACT 2000 Published by The Gazette of India
 www.google.com
 www.google.com: Asian School of Cyber Law
 Notes on Information Technology Act by Shri.Talwant Singh Addl. Distt. & Sessions Judge, Delhi
 NASSCOM ANNUAL REPORT 2010-2011
 Crime In India 2009 by Statistic National Crime Records Bureau (http://ncrb.gov.in)
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41. 41

42. Disclaimer
This presentation is prepared for knowledge sharing and awareness. We can use the information provided here
with proper credits. We have tried not to hide original credits as far as possible, nor we are using this
presentation for any personal financial gain. Information available in this presentation is not enforceable by
law; however these are our view about the topic which we feel should be shared. Any errors, omissions,
misstatements, and misunderstandings set forth in the presentation are sincerely apologized. Relying on the
contents will be sole responsibility of the users.
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