Cross-Border Online Trading Frauds And The Challenges Of Jurisdiction: A Legal Analysis Of India’s Framework Against Transnational Cyber Financial Crimes
- IJLLR Journal
- 7 minutes ago
- 2 min read
Ruban Paul P & Shruthi V, The Tamilnadu Dr. Ambedkar Law University (SOEL), Chennai
ABSTRACT
The rise of digital trading platforms has opened up to new investment options but it has also made investors more vulnerable to cyber-enabled financial crime than ever before. Recent events, like the Kochi businessman who lost ₹24.76 crore to an internet trading fraud run by a call centre in Cyprus, show how cross-border cyber financial crimes are becoming more common and these scams take use of the fact that cyberspace is anonymous, that digital payment systems are complicated and that there aren't any consistent worldwide legal systems in place and it makes it very hard to find, investigate, and prosecute them.
It emphasises the jurisdictional challenges encountered by Indian enforcement agencies when fraudulent enterprises operate internationally, the insufficiency of existing measures to enhance extraterritorial jurisdiction and the sluggish effectiveness of Mutual Legal Assistance Treaties (MLATs) in cybercrime investigations and it also analyses India's non-participation in the Budapest Convention on Cybercrime, juxtaposing it with global best practices from the United States, the European Union and Southeast Asia. This comparative analysis assesses the adequacy of India's current legislative instruments in tackling the transnational aspects of internet trading frauds, determining the necessity for systemic reforms. The essay contends that although India possesses a relatively strong cyber and financial legal framework, the disjointed enforcement strategy, insufficient international collaboration and restricted victim compensation mechanisms make it ineffective in addressing cross-border trading frauds. It ends by suggesting that cyber forensic skills be improved, international cooperation be sped up, countries sign up to global cybercrime treaties and a separate legal system be created for online financial scams to protect investors in the digital economy.
Keywords: Cross-border cyber fraud, Online trading scams, Jurisdictional challenges, Transnational cyber financial crimes, Information Technology Act, 2000, SEBI and RBI regulations, Mutual Legal Assistance Treaties.
