An IIT Madras study has revealed shocking facts about financial cyber fraud. According to research, people who are more educated and have better understanding of digital technology are also more likely to become victims of cyber fraud. Fraudsters don’t always take advantage of people’s lack of technical knowledge, but instead exploit emotions like fear, stress, and urgency. IT professionals, bank employees, doctors, financial experts and cyber security certificate holders were also among the victims in the study. According to the researchers, increasing digital literacy alone is not enough to prevent cyber fraud, but strengthening banking and law enforcement systems is also necessary.

Fraudsters take advantage of fear and stress

According to a study by researchers at IIT Madras, simply having digital information is not enough to avoid financial cyber fraud. Cybercriminals often target people’s mental state rather than their technical weaknesses. Money transfers from victims create fear, stress, haste and reputational concerns. The victims involved in the research included IT professionals, bankers, doctors, management and finance sector experts, government officials and people with cyber security certificates.

Targeted in difficult times

According to researchers, fraudsters often target people when they are going through a personal or professional problem. Circumstances like illness in the family, retirement, job search or excessive work pressure can increase mental pressure on a person. Cybercriminals take advantage of this situation to force them to take a quick decision. Many victims reported that they could not think normally during the deception. Some described this condition as an experience of mental entrapment.

Loss of more than one crore rupees

The people involved in the study suffered financial losses ranging from a few thousand rupees to over one crore rupees. The impact of cyber fraud is not limited to money. Many sufferers also reported problems like embarrassment, sleep problems, depression and stress in the family. Interviews with 33 victims were included in the research. Of them, 22 were men and 11 were women, while 12 victims were senior citizens. Interviews were conducted in Hindi, English and Tamil in Chennai, Bengaluru, Hyderabad, New Delhi and Mumbai.

A strong system with digital literacy is essential

The study also mentioned cyber crimes like investment and stock market related fraud, job title fraud, digital payment fraud, malware and digital arrest. The researchers said that increasing digital literacy alone will not solve the problem. Banks and law enforcement agencies should develop robust mechanisms for early detection of suspicious transactions, prompt action and better mutual coordination. The study was led by Professor P. Kandaswamy, IPS (retd) and Prof. Nandan Sudarshanam.