Mr. Sameer, a resident of Janakpuri, was excited about building a custom computer for his graphic design work. He found a promising deal online from a vendor named ‘Tech Solutions Inc.’ After a brief discussion, the vendor sent him an invoice with their company’s bank account details for a payment of nearly two lakh rupees. However, Sameer felt a sense of unease. A few months prior, he had been scammed out of a smaller amount while trying to buy a mobile phone from an unverified seller online. This past experience made him extremely cautious. He was now in a dilemma: the deal was good, but the fear of transferring a large sum of money to a potentially fraudulent account was paralysing. He needed to know if there was a reliable way to verify the legitimacy of ‘Tech Solutions Inc.’ and its bank details before proceeding with the transaction.

Advice in such cases

When dealing with online vendors and direct bank transfers, exercising caution is paramount. Here are some preventive measures you can take:

• Business Verification: Check if the vendor has a legitimate business presence. Look for a GST number on their invoice and verify it on the official GST portal. A registered business is more likely to be authentic.
• Online Footprint: Search for the company’s reviews on different platforms. A complete lack of online presence or only recently created social media profiles can be a red flag.
• * Check Account Name: When you add the beneficiary details in your banking app, it will show the name of the account holder. Ensure this name matches the name of the business or proprietor. Discrepancies are a major warning sign.
  
  * Small Test Transaction: Before transferring the full amount, consider making a very small transaction (e.g., ₹100) to the account. Confirm with the vendor that they have received it. This helps verify that the account is active and accessible by them.
  
  * Use Secure Payment Methods: Whenever possible, use payment methods that offer buyer protection, such as credit cards or recognised payment gateways, instead of direct bank transfers (NEFT/RTGS/IMPS).
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think

Applicable Sections of Law

Online financial frauds are serious crimes. If you become a victim, the perpetrators can be charged under various provisions of Indian law, primarily under the Bharatiya Nyaya Sanhita (BNS), 2023.

• Section 318 of the BNS, 2023: This section deals with ‘Cheating’. If a person fraudulently or dishonestly induces you to deliver any property (in this case, money), they can be prosecuted under this section.
• Section 316 of the BNS, 2023: This section pertains to ‘Criminal breach of trust’. If you entrust money to a person for a specific purpose (to deliver a product) and they dishonestly misappropriate it, this section may apply.
• Section 320 of the BNS, 2023: This section may also be invoked for offences related to cheating by using a computer resource or a communication device.

If you are the complainant

If you have already fallen victim to such a scam, it is crucial to act quickly and systematically. Your actions can help in tracing the funds and bringing the culprits to justice.

• Immediate Reporting: The first and most critical step is to call the National Cyber Crime helpline number 1930 immediately. You should also file a formal complaint on the National Cyber Crime Reporting Portal (www.cybercrime.gov.in). This initiates a process to try and block the fraudulent transaction.
• Inform Your Bank: Contact your bank immediately and provide them with all the transaction details. Request them to take action from their end to recall the funds or put a lien on the recipient’s account.
• File a Police Complaint: Visit your nearest police station or the Cyber Crime cell in your city and file a First Information Report (FIR). Provide them with all the evidence you have.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think

If you are the victim

Being a victim of a financial scam can be distressing. Here is a clear path forward:

• Preserve All Evidence: Do not delete any communication with the scammer. Take screenshots of the chats, advertisements, the seller’s website, and the fraudulent invoice.
• Document Everything: Keep a clear record of the transaction ID, the scammer’s bank account number, IFSC code, and any phone numbers or UPI IDs they used.
• Follow Up: Stay in regular contact with the police and your bank regarding the status of your complaint. Your persistence can make a difference.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think

How the police behave in such cases

Upon receiving a complaint, the police, especially the Cyber Crime cell, will initiate an investigation. They will register an FIR under the relevant sections of the BNS. The primary course of action involves contacting the recipient’s bank to freeze the account and obtain the account holder’s details (KYC). They will then trace the money trail, which can often be complex as scammers use multiple accounts to layer the funds. The process can be slow due to the multi-jurisdictional nature of these crimes and the sheer volume of cases, but reporting is essential for any chance of recovery and for preventing others from being victimised.

FAQs people normally have

• Can I verify a bank account’s history?
  No, as a private individual, you cannot access the transaction history or past activities of someone else’s bank account due to privacy laws. Verification is limited to confirming the account holder’s name during a transaction.
• What is the ‘golden hour’ in cyber fraud?
  The ‘golden hour’ refers to the first few hours after a fraudulent transaction. Reporting the crime to 1930 within this period significantly increases the chances of the authorities being able to block the money from being withdrawn by the scammer.
• Will I get my money back?
  Recovery of funds is challenging but not impossible. It depends on how quickly the crime is reported and whether the funds can be frozen before they are withdrawn or transferred further. Legal proceedings can eventually lead to compensation if the accused is caught and convicted.

What evidence is required?

To build a strong case, you must provide the following evidence:

• A copy of your bank statement showing the debited amount.
• The transaction ID or UTR number of the fraudulent transaction.
• Screenshots of all conversations with the scammer (e.g., on WhatsApp, email, or social media).
• The scammer’s bank account details, phone number, and any other contact information you have.
• A copy of the advertisement, website link, or invoice provided by the seller.

How long will the investigation take?

The duration of a cybercrime investigation varies greatly. It can take anywhere from a few months to over a year. The timeline depends on factors like the complexity of the money trail, whether the scammer is located in a different state, the level of cooperation from banks and other financial intermediaries, and the police department’s caseload. Patience and persistent follow-up are key.

Advocate Sudhir Rao, Supreme Court of India