Kerala Chitty Firms Under Cyber Attack: Fake IT Emails Seek Financial Data, Association Cries Fraud

The All Kerala Chitty Foremen’s Association has raised an alarm over a series of cyber fraud attempts targeting chitty firms and other financial institutions through fake emails impersonating Income Tax department officials.

According to the association, fraudsters have been sending emails demanding that institutions submit key financial records and other confidential documents within three days, warning of legal action and penalties for non-compliance. The emails, which appear to be issued by Income Tax officials, are part of a phishing campaign aimed at stealing sensitive financial information.

The fraud came to light after several chitty firms that received the emails verified their authenticity with the Income Tax department, which confirmed that the communications were fake, said David Kannanaikkal, chairperson of the association.

Warning institutions against sharing confidential data, the association said falling for such phishing attempts could expose organisations to serious financial and cyber security risks. Chit funds, a traditional rotating savings scheme popular in Kerala, often handle significant sums of money and are increasingly vulnerable to such attacks.

At its State executive committee meeting held in Kochi, the association urged the State police to launch an immediate crackdown on the cyber fraud network behind the scam. It also decided to submit a memorandum to Chief Minister V.D. Satheesan, Home Minister Ramesh Chennithala and the State Police Chief seeking stronger action to prevent such cyber crimes.

The association has urged all institutions to verify any suspicious communication directly with the Income Tax department before sharing any information. It also recommended implementing multi-factor authentication and training employees to recognise phishing attempts.