OTP, KYC, AI Scams On Rise As Cyber Crime Deepens In Kashmir

(MENAFN- Kashmir Observer)

• ₹22 Lakh Recovered In 3 Months; Police Flag Low Awareness As Key Risk
• Children, Job Seekers, Elderly Among Most Vulnerable, Say Officials

Srinagar- Amid a sharp rise in cyber crime cases across Kashmir, the Cyber Crime Investigation Centre for Excellence (CICE), Crime Branch Srinagar, has recovered over ₹22 lakh in the past three months, even as officials warn that lack of awareness remains the biggest factor behind people falling prey to online frauds.

Addressing a media workshop on Saturday, Deputy Superintendent of Police Ashiq Hussain Malik said the spread of technology has made cyber crime more pervasive, leaving virtually every mobile phone user exposed to potential fraud.

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“Today, almost everyone has access to a phone. The moment a person uses an internet-enabled device, they become vulnerable. Awareness is the only effective safeguard,” Malik said.

He said the purpose of engaging the media was to amplify awareness campaigns beyond institutions and offices.“Through media, the message can reach lakhs of people instantly,” he added.

Children, youth increasingly targeted

Malik said children are increasingly being targeted through social media platforms, where accounts are hacked and personal photographs misused or altered using artificial intelligence.

“These images are morphed into objectionable content and used to blackmail victims by threatening to share them with family or friends,” he said.

For youth, particularly students and job seekers, fraudsters exploit aspirations by offering fake scholarships, admissions in reputed institutions, or lucrative job opportunities in India and abroad.

“They demand money for registration, travel or processing. Once the payment is made, the link disappears,” he said.

Business, investment scams on rise

The officer said members of the business community are also falling victim to fraudulent investment schemes promising high returns.

“If a product worth ₹1,000 is being offered for ₹200, it should immediately raise suspicion. Such offers must always be verified before any transaction,” he cautioned.

ADVERTISEMENT OTP, KYC and impersonation frauds

Malik said a large number of cyber frauds revolve around OTP sharing, fake KYC verification, and impersonation calls posing as bank or service officials.

“In earlier times, valuables were kept in lockers. Today, everything-banking, identity, money-is stored in your phone. Sharing credentials is equivalent to handing over your entire security,” he said.

He also cited cases where fraudsters exploit emergency situations, such as shortages of essential commodities, to trick victims into sharing OTPs or personal details.

'Digital arrest' a myth

Highlighting a new trend, Malik warned against the so-called“digital arrest” scam, where fraudsters threaten victims with legal action.

“There is no such legal concept as digital arrest. No one can be arrested digitally. These are fear tactics, often targeting elderly individuals living alone,” he said.

He noted that older citizens are particularly vulnerable as they tend to panic under pressure.

AI-driven fraud on the rise

The use of artificial intelligence has made cyber fraud more sophisticated, with cases of voice cloning and identity impersonation increasing.

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“A fraudster can clone someone's voice and call their relatives asking for money. Always verify by calling back the person directly,” Malik advised.

He also warned about WhatsApp account hacking, where fraudsters send urgent financial requests from compromised contacts.“Even if the message comes from a known number, verify before sending money,” he said.

Recovery efforts and challenges

Sharing enforcement data, Malik said over ₹22 lakh has been recovered in the last three months, while a significant amount remains on hold and is in the process of being returned to victims.

“There is still a large amount that has been lost, and efforts are ongoing to recover it,” he said.

He referred to new measures introduced by the Indian Cyber Crime Coordination Centre (I4C), under which victims of fraud involving amounts up to ₹50,000 may not need to approach courts for recovery.

“If the cyber police station verifies the claim, it can recommend the bank to release the amount directly,” he said.

However, Malik pointed out implementation challenges, noting that many bank officials are still not fully aware of the procedure, leading to delays.

“In some cases, managers hesitate to take responsibility, but victims can escalate the matter through higher grievance mechanisms,” he said.

Immediate reporting crucial

Stressing the importance of timely action, Malik urged victims to report fraud immediately through the 1930 helpline.

“The transaction can be frozen instantly, but time is critical. It does not take even a minute for money to move,” he said.

He described the helpline and the National Cyber Crime Reporting Portal as“lifelines” for victims, though he acknowledged occasional congestion due to high call volumes.

Gaming, fake ads and regulatory gaps

Malik said online gaming platforms involving financial transactions have been restricted, and several websites blocked, but fraudsters continue to adapt.

He also raised concerns over misleading advertisements on social media, noting that action is largely complaint-driven due to the absence of automated detection systems.

Call for vigilance

In addition to cyber crime, Malik flagged rising drug abuse in Jammu and Kashmir as a serious concern, particularly among youth, and urged parents to remain vigilant.

He reiterated the role of media as a key partner in spreading awareness.

“If awareness increases, cyber fraud will decline. People must verify every digital interaction, avoid sharing sensitive information, and report suspicious activity immediately,” he said. (KNO)

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