Curbing Cyber Crimes by Indian Law

Tej Narain Prasad Varma 1, Dr. DA Khan 2

Department of Computer Applications, NIT, Jamshedpur , India
1
tpverm@yahoo.com

ABSTRACT

The exponential growth of Information and Communication Technology (ICT) in last

decade has significantly changed the paper based communication to e- communication,
which is emerging as a serious threat of cyber crime through computer facilitation or
computer as a target. In year 2000 India did enact Information Technology (IT) Act and
made first attempt at trying to define use and misuse of digital medium in the country.
Understanding of cyber crimes and its curbing through India Laws is the basic theme of
this paper.

Key Words: Cyber Crime, Indian Law

Corresponding Author: Tej Narain Prasad Varma

INTRODUCTION

Internet increases the richness of communications through greater interactivity between

the firm and the customer (Watson et al., 1998), providing information availability and
visibility (Simchi-Levi et al.,2003), inadequate enterprise without IT systems (Davenport
and Brooks, 2004),e-commerce applications (Chou et al., 2004) etc .With the
development of this new technology that also generate a risk of cyber crime, which is
define as “Criminal activity directly related to the use of computers, specifically illegal
trespass into the computer system or database of another, manipulation or theft of stored
or on-line data, or sabotage of equipment and data( Wow Essay 2009), Cyber-crime or
computer crime is considered to be any crime that uses a computer and a computer
network (Matthews, 2010) etc. Furnell (2001) classified cyber crime as “computer-
assisted” such as hacking, phishing and “computer-focused” as hate crimes,
telemarketing/internet fraud crimes. Widely used terms for crime involving computers
are computer crime, computer related crime, computer misuse, cyber crime, digital crime,
e-crime, internet crime, online crime etc. India Information Technology Act,
2000(hereinafter “IT ACT”) articulates cyber contraventions (violation of law or rule of
procedure, which may be may not be punishable) and cyber offences (an act prohibited
and made punishable) as collective term of Cyber Crime which is an illegal act that
involves a computer, computer system or computer network. In a digital age, where
internet has become the necessity of life, which is generating E- risks of cyber attacks by
criminal though data interception, data interference, system interference or illegal access
by e-mail spoofing or forgery, phishing, email spam, Denial of service attacks,
unauthorized access physically or virtually to computer/computer system/computer

Electronic copy available at: https://ssrn.com/abstract=2922365

networks, web jacking physically damaging the computer system etc. which are
exponentially growing the addition cost to the organization/ Government to manage the
E-risk. The IT Act, 2000 was formed to govern ,regulate, transactions in cyberspace and
legalise e-commerce . The provision of the IT Act, 2000, as amended 2008 in which
various cyber crimes have been declared as penal offences punishable with imprisonment
and fine may help the curbing the Cyber crime. The IT Act was amended in year 2008,
which leads to combating cyber crime by adding of changing of provision as liability of
Corporate body towards Sensitive Personal Data, introduction of virus, manipulating
accounts, denial of services etc. made punishable, sense of Phishing and Spam, Stolen
Computer resource or communication device Misuse of Digital Signature, Cheating,
Cyber terrorism, Child Pornography, Intermediary’s liability, Surveillance, Interception
and Monitoring, Sexually explicit content etc. Further, the Indian Penal Code 1860, the
Indian Evidence Act, 1872, the Banker’s Book Evidence Act, 1891 and the Reserve Bank of
India Act 1934 were amended to make them compatible with the IT ACT. This paper
describes various cyber crime risk and their curbing through Indian Laws specially IT
amended Act, 2008.

CYBER CRIME AND INDIAN LAW

2.1 Illegal Access (Hacking, Cracking)

Hacking means unauthorized or illegal access by means of physical or / and virtual
intrusion to a computer or computer system or computer network. By hacking computer
or computer system criminals may commit illegal access of confidential data, theft of
data, manipulation in data, denial of access of system by authorized person etc. In the
Information Technology (Amendment) Act, 2008 the term hacking has been substituted
with computer related offences which are all articulated under section 43 (a) of the act
primarily deals with contravention resulting due to unauthorized access to computer or
computer system or network or resources and then section 66 introduced with the concept
of mens rea (criminal intent) in the form of dishonesty (define in section 24 of Indian
Penal Code 1860) or fraudulently (define in section 25 of Indian Penal Code 1860) and if
crime is proved under section 66 ,
accused shall be punished for imprisonment, which may extend to three years or with
fine, which may extend to five lakh rupees or both and under section 65 (tempering with
computer source documents) accused should be punished with imprisonment up to three
years, or with fine which may extend up to two lakh rupees, or with both. Section 379
(Theft) & section 406 (criminal breach of trust) of Indian Penal Code, 1860 also are
applicable. This offence is cognizable, bailable and compoundable.

2.2 Illegal data acquisition (Data Theft or Alteration )

Data theft under Section 43 (b) of Information Technology (Amendment) Act, 2008 is
dealt as - If any person without permission of the owner or any other person, who is in
charge of a Computer, its system or network - downloads, copies or extracts any data,
computer data base or information from such computer, its system or network including

Electronic copy available at: https://ssrn.com/abstract=2922365

information or data held or stored in any removable storage medium, then it is data theft.
It protects data, computer database from unauthorized downloads, copies or extracts. The
aforesaid clause of this act is an attempt to introduce the elements of copyright protection
or Protection from Data or Intellectual Property Theft. The owner has an exclusive
‘digital content rights’ of reproduction. Whoever dishonestly receives or retains any
stolen computer resource or communication device knowing or having reason to believe
the same to be stolen computer resource or communication device, shall be punished with
imprisonment of either description for a term which may extend to three years or with
fine which may extend to rupees one lakh or with both dealt under Section 66 B of IT Act
2008.Section 23(Wrongful gain), Section 379(theft), 406(criminal breach of trust) &
420(Cheating and dishonestly) of Indian Penal Code,1860 are also applicable. Data Theft
offence is cognizable, bailable, compoundable.

2.2.1 Salami Attack

These attacks are used for the commission of financial crimes. The key here is to make
the alternation so insignificant that in a single case it would go completely unnoticed.
E.g. The Ziegler case wherein a logic bomb was introduced in the bank’s system, which
deducted 10 cents from every account and deposited it in a particular account.

2.3 Spreading or Dissemination of Malicious Software (Malware)

Section 43( c ) of IT amendment Act, 2008 takes into account where attempts made to
introduce or successful introduction of any contaminant or computer virus and 43 (e)
dealt with disruption which leads to malfunctioning into any computer or computer
system or computer network without permission of the owner or any other person, who is
in charge of such. This virus means any computer instruction, information, data or
program that destroys damages, degrades or adversely affects the performance of
computer resource or attaches itself to other computer resources. Criminal can ruin/mess
up the system and render it unusable without a re-installation of the operating system.
Most have not done this much damage in the past, but could easily do this in the future.
Usually the virus will install files on the system and then will change the system so that
virus program is run every time at start of system. Such offences also dealt under Section
66 of IT Act and Section 268(public nuisance) of Indian Penal Code, 1860 which is
cognizable, bailable & compoundable.

2.4 Physical or Virtual Damage

Section 43 (d) of IT act 2008 deals with damages or causes to be damaged any computer,
computer system or computer network, data, computer data base or any other programs
residing in such computer, computer system or computer network. It includes damage to
both hardware and / or software either done physically or virtually. Physical damage
means changing the original/ earlier hardware or software configuration of any computer
or systems by destroying, altering, deleting, adding, modifying or rearranging the binary
files manually. If such activities be performed by remotely connected system like
satellite, microwave or other communication media, is called virtual damage. Any person
who damages or causes to be damage shall be liable to damages by way of compensation
to the person so affected. It may cover instances related to computer/ online fraud or
forgery, privacy violation,etc.

2.4.1 Data Diddling

Data diddling is the performing unauthorized modifications to data prior or during input
into a computer or computer system by means of . It data entry, a virus that changes data,
the programmer of the database or application, exchanging valid disks and tapes with
modified replacements.

2.5 Denial of Service Attack

The Internet Security Glossary (Shirley,2000) defines Denial of Service ( commonly named
DOS attack) as “The prevention of authorised access to a system resource or the delaying of
system operations and functions.” It is a technology driven cyber intrusion, where the
cyber criminal floods the networks bandwidth or blocks the user’s mails with spam mails
depriving the user, access to the Internet and the services provided there from. There are
three basic types of attack; consumption of computational resources, such as bandwidth,
disk space, or central processing unit (CPU) time, disruption of configuration
information, such as routing information and disruption of physical network
components. The provision for this was made in section 43(f ) of IT amendment Act,
2008, which stated that denies or causes the denial of access to any person authorised to
access any computer, computer system or computer network by any means. Any person
who damages or causes to damage shall be liable to damages by way of compensation to
the person so affected. Section 368 of Indian Penal Code, 1860 defines Web-Jacking. It
may also cover instances related to spamming, etc;.

2.5.1 E-Mail Bombing

An e-mail bomb is a form of net abuse consisting of sending huge volumes of e-mail to
an address in an attempt to overflow the mailbox or overwhelm the server where the
email address is hosted in a denial-of-service attack. Mass mailing consists of sending
numerous duplicate mails to the same email address.

2.6 Theft of Internet Hours / Identity Theft

Section 43 (h) of of IT amendment Act, 2008 is safeguarding the rights of an account
holder of an Internet Service provider (ISP). The idea behind this is to prevent theft,
misappropriation, fraud or forgery of access code/ user id / password etc; by the person to
the account of another person by tempering with or manipulating any computer,
computer system or network. Identity theft is form of fraud or dishonest used to all types of
crime in which someone wrongfully obtains and uses another person's personal data or
password or other unique identification feature in some way that involves fraud or
deception, typically for financial gain. Even the offence of identity theft specifically by way
of use of a computer resource, was never addressed by any law before the 2008 amendment
to the IT Act. Section 66 C of IT Act as amended in 2008 deals with punishment for
identity theft i.e; whoever, fraudulently or dishonestly make use of the electronic signature,
password or any other unique identification feature of any other person, shall be punished
with imprisonment of either description for a term which may extend to three years and shall
also be liable to fine which may extend to rupees one lakh. Such offence also dealt under
section 415(cheating), Section 416(cheating by personation),Section 403 (dishonest
misappropriation of Property) of the IPC, etc. but not as theft under Section 378 of Indian
Penal Code.

2.6.1 Cyber squatting

Cyber squatting refers “an act of obtaining fraudulent registration with an intent to sell
the domain name to the lawful owner of the name at a premium”.

2.7 Sending offensive message

Section 66 A of IT ACT as amended in 2008 deals with punishment for sending offensive
messages (in the form of text viz. e-mail, SMS, blog, vblog, tweet; image, sound or voice etc)
through communication service, etc. that any person who sends, by means of a computer
resource or a communication device, a) any information that is grossly offensive or has
menacing character (obscenity in electronic form, morphing, defamation, text bullying,
stalking , etc.) or b) any information which he knows to be false, but for the purpose of
causing annoyance, inconvenience, danger, obstruction, insult, injury, criminal intimidation,
enmity, hatred, or ill will, persistently makes by making use of such computer resource or a
communication device, c) any electronic mail or electronic mail message for the purpose of
causing annoyance or inconvenience or to deceive or to mislead the addressee or recipient
about the origin ie; spamming, unsolicited email/ telephone call,etc. of such messages shall
be punishable with imprisonment for a term which may extend to three years and with
fine.The wording in this section ‘menacing character’, which though perceptibly intended to
protect against instances of threat mails or cyber stalking.

2.7.1 Cyber Stalking

Cyber Stalking can be defined as the repeated acts harassment or threatening behavior of
the cyber criminal towards the victim by using internet services. Stalking in General
terms can be referred to as the repeated acts of harassment targeting the victim such as
following the victim, making harassing phone calls, killing the victims pet, vandalizing
victims property, leaving written messages or objects.

2.7.2 Spam

Spam is describe as the emission of unsolicited bulk messages. Offenders send out
millions of e-mails to users, often containing advertisements for products and services,
but frequently also malicious software. Since the first spam e-mail was sent in 1978, how
ever, today e-mail provider organizations report that as many as 85 to 90 per cent of all e-
mails are spam. While this has not been mentioned specifically but this can be interpreted
in the provisions mentioned in section 66A of IT amendment Act, 2008. Through this
section, sending of menacing, annoying messages and also misleading information about
the origin of the message has become punishable with imprisonment up to three years and
fine.

2.7.3 Vishing

Vishing is the practice of using social engineering over the system, most often using
features facilitated by Voice over IP (VoIP), to gain access to private personal and
financial information from the public for the purpose of financial reward. The term is a
combination of “voice” and phishing.

2.8 Stolen Computer Resource or Communication

Section 66B of IT amendment Act 2008 having an element of data protection which deals
dishonestly (Section 24 of IPC) receiving and retaining any stolen computer resource,
wrong full gain ( Section 23 of IPC)for same. Offence under section 66 B of IT act 2008
is punishable with three years or fine of one lakh rupees or both. This section is safeguard
for e-commerce and e-transactions involving informational exchange and electronic data
exchange.

2.9 Mail Spoofing or forgery

Email spoofing is a technique used by Cyber Criminal to fraudulently send email

messages in which the sender address and other parts of the email header are altered to
appear as though the email originated from a source other than its actual source. Hackers
use this method to disguise the actual email address from which phishing and spam
messages are sent and often use email spoofing in conjunction with Web page spoofing to
trick users into providing personal and confidential information. Under Section 43 (h) of
Information Technology (Amendment) Act, 2008 is dealt as- charges the services availed
of by a person to the account of another person by tampering with or manipulating any
computer, computer system, or computer network. Section 66D of Information
Technology (Amendment) Act 2008 deals the punishment i.e; whoever, by means of any
communication device or computer resource cheats by personation, shall be punished
with imprisonment of either description for a term which may extend to three years and
shall also be liable to fine which may extend to one lakh rupees and Section
417(cheating), 419(cheating by personation), & 465 (forgery) of Indian Penal Code,
1860 also applicable. Email spoofing offence is cognizable, bailable and compoundable.

2.10 Privacy violation

Section 66 E of IT amendment act 2008 has made violation of ‘bodily privacy’ as an

offence, whoever, intentionally or knowingly captures, publishes or transmits the image
of a private area of any person without his or her consent, under circumstances violating
the privacy of that person. Nature of offence may be include installation of spy cam/
hidden camera/ communication device inside private area or hotel rooms etc. for the
purpose of violating bodily privacy of any user / occupant of such user, shall be punished
with imprisonment which may extend to three years or with fine not exceeding two lakh
rupees, or with both. Sting operation by a private person or any agency , which may
result in violating privacy of any person will fall under this section.

2.11 Cyber Terrorism

Section 66F of IT amendment act 2008 talks about acts of cyber terror which threatens
the unity, integrity or sovereignty of India or strike terror in the people or any section of
the people include a. Denial of service of resources in use by nation b. Attempting to
penetrate or access a computer resource without authorization or exceeding authorized
access c. Introducing or causing to introduce any computer contaminant likely to cause
death or injuries to person or damage to or destruction of property or disrupts or knowing
that it is likely to cause damage or disruption of supplies or services essential to the life
of the community or d. knowingly or intentionally penetrates or accesses a computer
resource without authorisation or exceeding authorised access, and by means of such
conduct obtains access to information, data or computer database that is restricted for
reasons for the security of the State or foreign relations, or any restricted information,
data or computer database, with reasons to believe that such information, data or
computer database so obtained may be used to cause or likely to cause injury to the
interests of the sovereignty and integrity of India, the security of the State, friendly
relations with foreign States, public order, decency or morality, or in relation to contempt
of court, defamation or incitement to an offence, or to the advantage of any foreign
nation, group of individuals or otherwise, commits the offence of cyber terrorism. These
acts have been made punishable with Imprisonment which may extend to imprisonment
for life.

2.11 Pornography
Pornography is verbal or pictorial material which represents or describes sexual behavior
that is degrading or abusive to one or more of the participants in such a ways as to
endorse the degradation. Behavior that is degrading or abusive includes physical harm or
abuse and physical or psychological coercion. In addition, behavior that ignores or
devalues the real interest, desires and experiences of one or more participants in any way
is degrading. Finally that a person has chosen or consented to be harmed, abused, or
subjected to coercion does not alter the degrading character of such behavior. Section 67
B of IT amendment act 2008 is attempt to address the issue of child pornography.
Through this section it has made the publication or transmission of material in any
electronic form which depicts children engaged in sexually explicit act or conduct, any
one who creates, facilitates or records these acts and images punishable with
imprisonment of five years and fine which may extend up to ten lakhs in first offence and
seven years and fine of ten lakhs on subsequent offence.
DISCUSSION

The Minister of State for Communications & Information Technology, India had
informed the Rajya Sabha that cyber crimes are on the rise in the country and also
address the growing threat of Cyber Crimes in the country, the Government has evolved
an integrated approach with the legal, technical and administrative steps.(PIB,2012).This
statement indicates the seriousness to curb cyber crime in India. The Information
Technology Act provides legal framework to address various types of cyber crimes and
prescribes punishment for such crimes.Under the IT Act 2000, criminal offences were
specified under Sections 65,66 and 67 of Chapter XI (“Offences”). The Chapter IX of
IT Amendment Act 2008,contains sections 43 to 47 which describe different nature of
penalties, appointment of adjudication Officer for holding an inquiry in relation to certain
computer crimes and for awarding compensation or damages for certain types of
computer frauds and Chapter XI deals with some computer crimes and provides for
penalties for these offences. It contains sections 65 to 78. The table 1 describes
cybercrimes, section under which the crime is punishable and its respective punishment.

Table 1 Crime and Punishment under ITAA 2008

Section Crime Punishment

43 Damage to computer system Compensation not exceeding Rs. 05 Crore

43 A Failure to protect data Compensation not exceeding Rs. 05 Crore

44(a) Failing to furnish any document, return on Rs. 1.5 Lakhs for each such failure
report to the controller or the certifying
authority

44 (b) Failing to file any return or furnish any Penalty not exceeding Rs. 05 Thousand
information or other document within the for every day during which such failure
prescribed time continues.

44(c) For not maintaining books of account or Penalty not exceeding RS. 10 Thousand
records for every day during which such failure
continues.
45 Offences for which no penalty is separately Compensation of RS. 25 Thousand
provided
65 Tampering with computer source Imprisonment up to three years or with
documents fine which may extend up to RS. 02
Lakhs or both

66 Hacking with the intent or knowledge Imprisonment up to three years or with

fine which may extend upto Rs. 02 Lakhs
or both
66 A Sending offensive messages through Imprisonment for a term which may
communication service extend to three years or with fine which
 may extend to RS. 05 Lakhs or both.

66 B Dishonestly receiving stolen computer Imprisonment of for a term which may

resource or communication device extend to three years or with fine which
may extend to RS. 01 Lakh or both.

66C Identity theft Imprisonment of for a term which may

extend to three years and with fine which
may extend to RS. 01 Lakh or both.
66D Cheating by personating using computer Imprisonment for a term which may
resource extend to three years and shall also be
liable to fine which may extend to RS. 01
Lakh
66E Violation of privacy Imprisonment which may extend to three
years or with fine not exceeding RS. 02
Lakhs, or with both
66F Cyber terrorism Imprisonment which may extend to
imprisonment for life’.
67 Publication of obscene material in an Imprisonment upto five years and with
electronic form fine which may extend upto RS. 01 Lakhs
on first conviction and its double
punishment for second and subsequent
convictions

68 Failing to comply with the directions of the Imprisonment upto three years and fine
controller upto RS. 02 Lakhs or both

69 Failing to extend facilities to decrypt Imprisonment which may extend to seven

information which is against the interest of years
sovereignty or integrity of India
70 Attempting or securing access to computer Imprisonment which may extend to ten
of another person without his / her years and fine
knowledge

Appendix 1 describes the Cyber Crime and relevant section of ITAA 2008 and IPC 1860.

CONCLUSION

Technology is always a double-edged sword. Society that is dependent more and more on
technology cyber crimes are bound to increase because bytes are replacing bullets in the
crime world. There will always be new and unexpected challenges to stay ahead of cyber
criminals and cyber terrorists but we can win only through partnership and collaboration
of both individuals and government. Hence, it is responsibilities of the law makers have
to go the extra mile compared to the fraudsters, to keep them at bay. The Information
Technology Act 2000 was first step in India for securing internet based transactions or
communication. The existing provisions along with the additional / revised provisions
under the IT Amendment, Act 2008 provide for criminal prosecution and stringent
monetary penalties that are likely to act as effective deterrents to curb the cyber crime
from Indian society. Introduction of several provisions in the IT Amendment Act, 2008,
are extremely essential in today’s business environment as several Indian companies
providing services to or in conjunction with foreign entities handle large amounts of data
that are accessed and/or processed by their employees. There are some avoidable
loopholes in the act as cyber Stalking, cyber squatting etc., which need to be proper
combating. History is the witness that no legislation has succeeded in totally eliminating
crime.

REFERENCE

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About the Author

Tej Narain Prasad Varma is a researcher in Computer Applications at NIT,Jamshedpur and working as
Assistant Manager, Vigilance in Tata Steel Limited, India. He is a Master of Philosophy in Computer Science
from VMU, Salem, India. His keen interest is to use the computer science or information technology in area
of Supply Chain management , Fraud detection and investigation, cyber security. He has industrial
experience of more than 25 years as well as part time teaching experience of more than 15 years in field of
Computer Application and Management. He has contributed in International Journal of Research in
Management. He is a life member of professional bodies like ORSI, CSI and ISTD India

Danish Ali Khan is an Associate Professor at NIT, Jamshedpur. He had obtained PhD in Computer
Application from NIT, Jamshedpur, India. He has held many administrative responsibilities like, Deputy
Registrar, member of Computer Committee, Assistant Controller of Examination, College Inspection
committee, etc. He has teaching experience of more than 15 years in field Computer application and 4 years
industrial experience. His research interest includes supply chain management, operations research and
Computer Application and also guiding and supervising the research scholar in this area. He has contributed
in Int.J. Business Performa and Supply Chain Modelling, MT & M,AMSE Modelling, AMSE Journal of
Production Engineering and Management Organisation. He is also reviewer of AMSE Journal France. He is
a member of professional bodies like ISTE India.

Appendix1 Cyber Crime and relevant section of ITAA 2008 and IPC 1860

Cyber Crime Relevant Section of IT Relevant section of IPC

Amendment Act 2008 1860

ATM/EDI fraud 43,66

Child Pornography 67 B
Cyber terrorism 66 F
Criminal breach of trust/Fraud 405,406,408,409
Data Diddling 43(d)
Data theft 43(b)
Denial of Service attacks 43 (f) 368,383
Destruction of electronic 204, 477
evidence
Cyber Stalking 66 A 503, 506
E-mail bombing 43(f),66 368
E-mail spoofing 43,66 D 416, 417, 419, 463, 465,
False electronic evidence 193
Forgery of electronic records 463, 470, 471
Identity theft 66 C
Intellectual Property theft 66 B 379,405,420
Hacking 65, 66 A 379,406
Logic Bomb 66 B 379,405,420
Money-laundering 72
Phishing 43,65,66
Pornography 67
Privacy violation 66 E
Virus attacks 43,66
Salami attacks 65, 66 A, 66 B 379,405,420
Spam 66 A
Sending threatening messages 66 503, 506
by e-mail
Sending defamatory messages 66 499
by e-mail
Web-jacking 43 (f) 383