Focus on cyber scams.

 

A focus on online fraud and how generative AI can serve criminal interests. Now is the time for India and the United States, both exploited by online scammers, to show global leadership in jointly tackling this growing threat.

A global rise in cyber scams

India has long been at the centre of discussions about scams and online fraud. The country emerged as a hub for the call centre industry in the 1990s, when prominent Western companies – attracted by the potential savings and the fact that English is widely spoken in the country – offshored this component of their business there. More recently, companies have begun to outsource to other countries, and some of those who had previously worked in Indian centres have reportedly stolen databases from their previous employers to set up their own call centres, offering legitimate, but in some cases fraudulent support. Today, online scammers in India often hide behind legitimate businesses. The companies reportedly defraud victims – including from the US – out of millions of dollars through fake tech support, false loans and fraudulent business deals. In 2023, India’s Directorate of Enforcement raided one such company following a money laundering investigation. They seized cash, gold and cryptocurrency wallets, and found evidence of the use of hawala networks to move money. Enforcement agents also discovered that this company appeared to be just one in a web of related entities operating out of India, but with affiliates in the UK, US and Australia – a transnational network. The investigation into the company is ongoing.