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In this case, the complainant had received SMS messages on his mobile phone for loan for a third COVID-19 vaccine dose and it also had a link for checking eligibility
The Delhi High Court, while denying bail to a man accused of orchestrating financial fraud through a mobile application, underscored the adverse economic impact of cyber-enabled crimes, stating that financial losses erode people's trust in online transaction platforms.
The court noted that such a loss of trust contradicts the vision of an "advanced digital bharat" and discourages new entrants into the digital space, ultimately impacting the nation's economy negatively.
The case involved allegations of defrauding individuals of their hard-earned money through financial scams facilitated by a mobile application. The court observed that the conspiracy likely attracted thousands of investors, with the money trail prima facie amounting to approximately Rs 140 crore.
Justice Swarana Kanta Sharma expressed concern over cyber-enabled crimes in the digital age, where perpetrators entice individuals to download applications through clickbait links, exploiting the cyber illiteracy of common citizens. The accused in the present case allegedly used the allure of obtaining short-term loans to defraud unsuspecting victims.
"The case in hand serves as an illustration of how cyber-enabled crimes are taking place in the present digital age, wherein the accused persons, through a click bait link, allure people towards installing an application commonly known as 'app' in their mobile phones, and then based on this allurement, the cyber-illiterate common citizens download them or click the link totally oblivious to the fraud, which will stare them in their eyes in a matter of few minutes or hours.The bait of getting them short-term loans on the click of a button and defrauding them of their hard-earned money is nowadays common, and the cyber illiteracy of common citizens is being taken advantage of by such accused, as prima facie in the present case," Justice Sharma said.
The court highlighted the modus operandi, where individuals downloading the 'Express Loan' application were prompted to provide personal details, resulting in money being instantly credited to their bank accounts. Subsequently, victims faced threats from the developers, who gained access to their contacts and other stored data.
The court emphasized that these cyber-enabled crimes extend beyond immediate financial losses, impacting the overall economy by diminishing people's trust in online financial transactions.
The high court, in its order, noted that the alleged fraud had taken place at the most difficult times for our country, that is, during the COVID-19 pandemic, when the citizens were suffering losses in business and were looking for survival in the market and earning for themselves. The innocent investors who had deposited Rs 4,000 or Rs 5,000 in the hope of obtaining loans for survival may have even afforded to deposit this amount with difficulty, it said.
"Such offences extend well beyond the immediate financial losses associated with fraudulent transactions, and it is the economy at large that suffers firstly through the immediate loss, and secondly, it is the loss of the people's trust in the online financial transactions," the court said.
It emphasized a two-fold economic impact: direct financial losses incurred by individuals and indirect losses manifesting as reduced trust in digital platforms. Such erosion of trust hinders new entrants from embracing digital transactions, negatively influencing the nation's economy.
Case Title: Vineet Jhavar v. State of NCT of Delhi
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