Exploring The Socio-Legal Impact Of Online Scams In India
- IJLLR Journal
- Feb 24
- 2 min read
Dr Jyoti Yadav, Assistant Professor, Amity University, Lucknow
Raman Singh, Amity University, Lucknow
Introduction
India’s rapid digital transformation, accelerated through initiatives such as Digital India, has significantly expanded internet penetration and digital financial services. The proliferation of digital payment systems, mobile banking, and e-commerce platforms has created new economic opportunities while expanding the landscape for cyber-enabled fraud. Data published by the National Crime Records Bureau (NCRB) demonstrates a steady rise in cybercrime cases, with online financial fraud constituting a substantial portion of reported offences. The increasing use of Unified Payments Interface (UPI) systems and app-based transactions has made individuals vulnerable to technologically sophisticated scams. The legal system must therefore adapt to protect constitutional rights to privacy and property in the digital domain.
Types of Online Scams in India
Phishing and Identity Theft
Phishing schemes deceive users into revealing confidential information such as one-time passwords (OTPs), PINs, and login credentials. Identity theft often leads to unauthorised financial transactions. Sections 66C and 66D of the Information Technology Act, 2000, criminalise identity theft and cheating by personation using electronic means. The Supreme Court recognised the importance of digital privacy protections in Justice K.S. Puttaswamy (Retd.) v. Union of India, affirming privacy as a fundamental right under Article 21 of the Constitution. This constitutional protection strengthens the legal basis for prosecuting misuse of digital identity.
E-Commerce and Marketplace Frauds
Fraudulent sellers frequently exploit online marketplaces by advertising counterfeit or non-existent products. Such conduct attracts criminal liability under Sections 415 and 420 of the Indian Penal Code, 1860. Indian courts have clarified intermediary liability in Shreya Singhal v. Union of India, where the Supreme Court interpreted safe harbour protections under Section 79 of the IT Act. While intermediaries are protected in certain circumstances, failure to act upon actual knowledge of unlawful activity may attract liability.
