MP High Court: Cyber Fraud Victims Lose Savings in Minutes, Investigations Take Days
The Madhya Pradesh High Court has underscored the urgent need for real-time coordination among police, banks, telecom companies, and online platforms to combat cyber fraud effectively. The court made the observations while hearing a petition filed by Chaitali Mittra, a victim of online fraud, against the superintendent of police and others.
Justice Himanshu Joshi noted that cyber fraud investigations differ fundamentally from conventional criminal probes. 'Cyber fraud is a crime where every second is of significance. Prompt reporting by the victim, immediate freezing of accounts by banks, real-time sharing of information by financial institutions, expeditious response by telecom service providers and social media platforms, prompt action by investigating agencies, and seamless coordination amongst police authorities of different states are all indispensable for an effective investigation,' the court said on July 14.
The case arose from a complaint in which investigators traced the principal suspect to Assam. The court observed that the issues raised extend beyond the individual case and concern the broader framework of cyber crime investigations in the country. It directed that the Union of India, the Reserve Bank of India, and multiple state police authorities be impleaded in the proceedings.
During the hearing, the Superintendent of Police, Jabalpur, appeared before the court along with the station house officer and the investigating officer to explain the progress. The SP stated that the complaint was forwarded to the cyber cell immediately. However, he explained that investigations depend heavily on information from banks, each with separate nodal officers at different locations. Even obtaining preliminary responses from these agencies generally takes three to five days, delaying the investigation at the initial stage.
Police further submitted that many cases require assistance from authorities in other states where transactions or suspects are located. Such cooperation is not always received promptly, causing additional delays. Fraudsters increasingly use 'mule' or 'null' bank accounts opened in the names of innocent persons and rely on encrypted platforms like Telegram. Investigators must approach intermediaries for IP logs and subscriber information, a process that consumes considerable time. By then, accused persons often change locations, dissipate proceeds, and erase electronic evidence.
Recognizing that the issues transcend the facts of the present case, the court directed the petitioner to implead the Union of India through the Ministry of Home Affairs and the Department of Telecommunications, as well as the Reserve Bank of India. The court said their assistance is necessary to examine whether an effective nationwide mechanism can be evolved for faster cyber crime investigations and real-time information exchange.
