Launch of Central Suspect Registry to Combat Cyber Crimes

Introduction

In a distressing incident that highlights the growing threat of cyber fraud, a software engineer in Bangalore fell victim to fraudsters who posed as police officials. These miscreants, operating under the guise of a fake courier service and law enforcement, employed a sophisticated scam to dupe unsuspecting individuals out of their hard-earned money. Unfortunately, this is not an isolated incident, as several cases of similar fraud have been reported recently in Bangalore and other cities. It is crucial for everyone to be aware of these scams and adopt preventive measures to protect themselves.

Bangalore Techie Falls Victim to ₹33 Lakh

The software engineer received a call from someone claiming to be from FedEx courier service, informing him that a parcel sent in his name to Taiwan had been seized by the Mumbai police for containing illegal items. The call was then transferred to an impersonator posing as a Mumbai Deputy Commissioner of Police (DCP), who alleged that a money laundering case had been registered against him. The fraudsters then coerced him into joining a Skype call for verification purposes, during which they obtained his personal details, including bank account information.

Under the guise of verifying his credentials, the fraudsters manipulated him into transferring a significant amount of money to various accounts. They assured him that the funds would be returned after the completion of the procedure. However, once the money was transferred, the fraudsters disappeared, leaving the victim devastated and financially drained.

Best Practices to Stay Safe

1. Be vigilant and skeptical: Maintain a healthy level of skepticism when receiving unsolicited calls or messages, especially if they involve sensitive information or financial matters. Be cautious of callers pressuring you to disclose personal details or engage in immediate financial transactions.
2. Verify the caller’s authenticity: If someone claims to represent a legitimate organisation or law enforcement agency, independently verify their credentials. Look up the official contact details of the organization or agency and reach out to them directly to confirm the authenticity of the communication.
3. Never share sensitive information: Avoid sharing personal information, such as bank account details, passwords, or Aadhaar numbers, over the phone or through unfamiliar online platforms. Legitimate organizations will not ask for such information without proper authentication protocols.
4. Use secure communication channels: When communicating sensitive information, prefer secure platforms or official channels that provide end-to-end encryption. Avoid switching to alternative platforms or applications suggested by unknown callers, as fraudsters can exploit these.
5. Educate yourself and others: Stay informed about the latest cyber fraud techniques and scams prevalent in your region. Share this knowledge with family, friends, and colleagues to create awareness and prevent them from falling victim to similar schemes.
6. Implement robust security measures: Keep your devices and software updated with the latest security patches. Utilize robust anti-virus software, firewalls, and spam filters to safeguard against malicious activities. Regularly review your financial statements and account activity to detect any unauthorized transactions promptly.

Conclusion:

The incident involving the Bangalore techie and other victims of cyber fraud highlights the importance of remaining vigilant and adopting preventive measures to safeguard oneself from such scams. It is disheartening to see individuals falling prey to impersonators who exploit their trust and manipulate them into sharing sensitive information. By staying informed, exercising caution, and following best practices, we can collectively minimize the risk and protect ourselves from these fraudulent activities. Remember, the best defense against cyber fraud is a well-informed and alert individual.

Recently, Apple has pushed away the Advanced Data Protection feature for its customers in the UK. This was done due to a request by the UK’s Home Office, which demanded access to encrypted data stored in its cloud service, empowered by the Investigatory Powers Act (IPA). The Act compels firms to provide information to law enforcement. This move and its subsequent result, however, have raised concerns—bringing out different perspectives regarding the balance between privacy and security, along with the involvement of higher authorities and tech firms.

What is Advanced Data Protection?

Advanced Data Protection is an opt-in feature and doesn’t necessarily require activation. It is Apple’s strongest data tool, which provides end-to-end encryption for the data that the user chooses to protect. This is different from the standard (default) encrypted data services that Apple provides for photos, back-ups, and notes, among other things. The flip side of having such a strong security feature from a user perspective is that if the Apple account holder were to lose access to the account, they would lose their data as well since there are no recovery paths.

Doing away with the feature altogether, the sign-ups have been currently halted, and the company is working on removing existing user access at a later date (which is yet to be confirmed). For the UK users who hadn’t availed of this feature, there would be no change. However, for the ones who are currently trying to avail it are met with a notification on the Advanced Data Protection settings page that states that the feature cannot be enabled anymore. Consequently, there is no clarity whether the data stored by the UK users who availed the former facility would now cease to exist as even Apple doesn’t have access to it.  It is important to note that withdrawing the feature does not ensure compliance with the Investigative Powers Act (IPA) as it is applicable to tech firms worldwide that have a UK market. Similar requests to access data have been previously shut down by Apple in the US. 

Apple’s Stand on Encryption and Government Requests

The Tech giant has resisted court orders, rejecting requests to write software that would allow officials to access and enable identification of iPhones operated by gunmen (made in 2016 and 2020). It is said that the supposed reasons for such a demand by the UK Home Office have been made owing to the elusive role of end-to-end encryption in hiding criminal activities such as child sexual abuse and terrorism, hampering the efforts of security officials in catching them. Over the years, Apple has emphasised time and again its reluctance to create a backdoor to its encrypted data, stating the consequences of it being more vulnerable to attackers once a pathway is created. The Salt Typhoon attack on the US Telecommunication system is a recent example that has alerted officials, who now encourage the use of end-to-end encryption. Barring this, such requests could set a dangerous precedent for how tech firms and governments operate together. This comes against the backdrop of the Paris AI Action Summit, where US Vice President J.D. Vance raised concerns regarding regulation. As per reports, Apple has now filed a legal complaint against the Investigatory Powers Tribunal, the UK’s judicial body that handles complaints with respect to surveillance power usage by public authorities. 

The Broader Debate on Privacy vs. Security

This standoff raises critical questions about how tech firms and governments should collaborate without compromising fundamental rights. Striking the right balance between privacy and regulation is imperative, ensuring security concerns are addressed without dismantling individual data protection. The outcome of Apple’s legal challenge against the IPA may set a significant precedent for how encryption policies evolve in the future.

References

• https://www.bbc.com/news/articles/c20g288yldko 
• https://www.bbc.com/news/articles/cgj54eq4vejo
• https://www.bbc.com/news/articles/cn524lx9445o
• https://www.yahoo.com/tech/apple-advanced-data-protection-why-184822119.html
• https://indianexpress.com/article/technology/tech-news-technology/apple-advanced-data-protection-removal-uk-9851486/
• https://www.techtarget.com/searchsecurity/news/366619638/Apple-pulls-Advanced-Data-Protection-in-UK-sparking-concerns
• https://www.computerweekly.com/news/366619614/Apple-withdraws-encrypted-iCloud-storage-from-UK-after-government-demands-back-door-access?_gl=1*1p1xpm0*_ga*NTE3NDk1NzQxLjE3MzEzMDA2NTc.*_ga_TQKE4GS5P9*MTc0MDc0MTA4Mi4zMS4xLjE3NDA3NDEwODMuMC4wLjA. 
• https://www.theguardian.com/technology/2025/feb/21/apple-removes-advanced-data-protection-tool-uk-government 
• https://proton.me/blog/protect-data-apple-adp-uk#:~:text=Proton-,Apple%20revoked%20advanced%20data%20protection%20
• https://www.theregister.com/2025/03/05/apple_reportedly_ipt_complaint/ 
• https://www.computerweekly.com/news/366616972/Government-agencies-urged-to-use-encrypted-messaging-after-Chinese-Salt-Typhoon-hack

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Introduction

In the multifaceted world of international trade and finance, cross-border transactions constitute the heart of economic relationships that span the globe. The threads that intertwine forming the fabric of global commerce are ceaselessly dynamic and exhibit an intricate pattern of complexity especially when it comes to the regulated movement of capital. It's a domain where economies connect, where businesses engage in sublime commerce, and where technology and regulation intersect at critical juncture. These guidelines will play a critical role in the regulation of capital, fortification of financial integrity, and transparency of regulatory and cross-border payments. The key highlights of this regulation include strict pre-authorization for non-bank entities, mandating specific accounts for import and export PA-CBs and a transaction ceiling of 25,00,000 Rupees.

The Vigilance of RBI 

The Reserve Bank of India (RBI), ever vigilant in its shepherding role over the nation's financial stability and integrity, has taken decisive strides to dispel the haze that once clouded this critical sector. With the issuance of a revelatory circular dated October 31, 2023, the RBI has unveiled a groundbreaking framework that redefines the terrain for these pivotal financial entities, aptly christened as Payment Aggregators – Cross Border (PA-CB). In deploying this comprehensive array of regulations, the RBI demonstrates a robust commitment to harmonizing and synchronizing the oversight of payments within the country's financial fabric, extending its meticulous regulatory weave from domestic Payment Aggregators (PAs) to the PA-CBs, a sector previously undistinguished in formal oversight.

The prescriptive measures announced by the RBI are nothing short of a regulatory beacon that cuts through the fog of uncertainty, illuminating a clear path forward for entities dedicated to facilitating cross-border payment transactions pertaining to the import and export of permissible goods and services in India through online modes. Inclusiveness is a hallmark of the RBI’s directive, encompassing a diverse cadre of financial actors, ranging from Authorized Dealer (AD) banks and conventional Payment Aggregators (PAs), to the emergent breed of PA-CBs actively engaged in processing these critical international payment transactions.

Key Aspects of Regulation

One of the most striking aspects of this new regulatory regime is the RBI's insistence on pre-authorization. All non-bank entities providing PA-CB services are impelled to apply to the apex bank for authorisation by April 30, 2024. This is far from a perfunctory gesture; it represents a profound departure from the bygone era when these entities functioned under a patchwork of provisional guidelines and ad-hoc circulars. Indeed, with this resolute move, the RBI signals its intention to embrace these entities within its direct regulatory gambit, an acknowledgement of the shifting tides and progressive intricacies characteristic of cross-border payments.

The tapestry of new rules is complex, setting forth an array of prerequisites for entities aspiring for authorization. For instance, non-bank PA-CBs are obliged to register with the Financial Intelligence Unit-India (FIU-IND) as a preliminary step before commencing the application process. Moreover, the financial benchmarks set are notably rigorous. Non-banks must boast a minimum net worth of ₹15 crores at the time of the application—a figure that escalates to a robust ₹25 crores by the fiscal deadline of March 31, 2026.

Way Forward

As if these requirements weren't indicative enough of the RBI’s penchant for detail and precision, the guidelines become yet more granular when addressing specific types of PA-CBs. Import-only PA-CBs are mandatorily obliged to maintain an Import Collection Account (ICA) with an AD Category-I scheduled commercial bank, while export-only PA-CBs are instructed to maintain an Export Collection Account (ECA), which can be maintained in Indian Rupees (INR) or any permissible foreign currency. The nuance here is palpable; payments for import transactions must be received in a meticulously managed escrow account of the PA, prior to being funneled into the ICA for smooth settlement with overseas merchants.

Conversely, export-only PA-CBs' proceeds from international sales must be swiftly credited to the relevant currency ECA. This meticulous accounting ensures that the flow of funds is both transparent and traceable, adhering to the utmost standards of financial probity.

Yet, perhaps the most emphatic of the RBI's pronouncements is the establishment of a transaction ceiling. PA-CBs have their per-transaction limit capped at ₹25,00,000 for each unit of goods or services exchanged. This calculated move is transparent in its objective to mitigate risk—a crucial aspect when one considers the potential implications of these transactions on the country’s fiscal health and the integrity of its financial systems.

It is no exaggeration to declare that with these guidelines, the RBI is effectuating a seismic shift in the regulation of cross-border payment transactions. There's a fundamental transformation taking place—a metamorphosis—from a loosely defined existence of PA-CBs to one of distinct clarity, under the direct and unswerving supervisory gaze of the regulator. The compliance burden, indeed, has become heavier, yet the return is a compass that points decisively towards secure harbours.

As we embark upon the fresh horizons that these rules bring into view, it is imperative to acknowledge that the RBI's regulatory innovations represent far more than a mere codification of dos and don'ts. They embody a visionary stride towards safeguarding and fortifying the architecture of international payments, a critical component of India's burgeoning presence on the world economic stage.

Conclusion 

The journey ahead, as we navigate these newly charted waters with the RBI's guidelines as our steadfast North Star, will no doubt be replete with challenges, adaptations and learning curves for the array of operational entities. But it is with confidence we can say, the path is set; the map is clear. The complex labyrinth of cross-border financial transactions is now demystified, and the RBI's clarion call beckons us towards a future marked by regulation, security, and above all else, reliability in the cosmopolitan tapestry of global trade. RBI’s guidelines provide a comprehensive framework for standardizing cross-border financial transactions in India. This decision is a monumental step towards maintaining cyber peace in cyberspace. 

References:

• https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12561&Mode=0
• https://www2.deloitte.com/in/en/pages/tax/articles/tax-alert-Regulation-of-payment-aggregator-cross-border-pa-cb.html
• https://www.jsalaw.com/newsletters-and-updates/rbis-new-guidelines-to-govern-payment-aggregators-in-cross-border-transactions/ 

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