EXECUTIVE SUMMARY

Cybercrime are any illegal activities committed using computer target of the criminal
activity can be either a computer, network operations. Cybercrimes are genus of crimes, which
use computers and networks for criminal activities. The difference between traditional crimes
and cybercrimes is the cybercrime can be traditional in nature. Cybercrime is crime that is
committed online in many areas using e-commerce. A computer can be target of an offence when
unauthorized access of computer network occurs and on other hand it affects E-commerce.
Cybercrimes can be of various types such as telecommunication piracy, electronic money
laundering and tax evasion, sales and investment fraud, electronic fund transfer fraud and so
on…
The modern contemporary era has replaced these traditional monetary instruments from a
paper and metal based currency to “plastic money” in the form of credit cards, debit cards, etc.
This has resulted in the increasing use of ATM all over the world. The use of ATM is not only
safe but is also convenient. This safety and convenience, unfortunately, has an evil side as well
that do not originate from the use of plastic money rather by the misuse of the same. This evil
side is reflected in the form of “ATM fraud” that is a global problem.
Internet commerce has grown exponentially during the past few years and is still
growing. But unfortunately the growth is not on the expected lines because the credit card fraud
which has become common has related the e-commerce growth. Credit card fraud has become
regular on internet which not only affects card holders but also online merchant. Credit card
fraud can be done by taking over the account, skimming or if the card is stolen. Certain
preventive measures can be taken to becoming a credit card victim.
The term “Internet Fraud” refers generally to any type of fraud scheme that uses one or
more components of the internet- such as chat rooms, e-mails, message board, or web sites- to
present fraudulent solicitations to prospective victims, to conduct fraudulent transaction , or to
transmit the proceed of fraud to financial institutions or to other connected with the scheme.
 INDEX

Sr.no. Chapter scheme Page no.

1 EXECUTIVE SUMMARY 01
2 Chapter 1:INTRODUCTION 02-61
CYBER CRIME
CYBER CRIMINALS
BANKING SECTOR
CYBER MONEY LAUNDERING
CREDIT CARDS FRAUD
SKIMMING
CYBER LAWS

3 Chapter 2: RESEARCH METHODOLOGY 62-67

4 Chapter 3: LITERATURE OF REVIEW 68-77
5 Chapter 4: DATA INTERPRETATION 78-89
6 Chapter 5: CONCLUSION AND SUGGESTION 90-91

7 BIBLIOGRAPHY 92
 CHAPTER: 1

INTRODUCTION

“The modern thief can steal more with a computer than with a gun. Tomorrow’s terrorist may be
able to do more damage with a keyboard than with a bomb”

-National Research Council,”Computers At Risk”, 1991

Cyber-crime in the 21st Century has emerged to be one of the most lethal revengeful weapon that
any person can use to threaten or cheat someone. The active internet users as per the latest
reports of January 2021, were around 4.66 billion and this growth has led to the increase in the
chances of a user being trapped in this malicious method of crimes which has been in surge
during the past few decades.

Although it is understandable that computers have become an essential part of one's existence,
they have also developed an environment conducive to cyber-crime. Cyber-crimes pose a major
challenge in light of the fast-changing environment and the significant contribution of the IT
industry. Cybercrime is typically carried out by offenders who have technological skills who can
outstrip and think one step ahead of the law in order to gain access to computers and commit
crimes.

1.1 Cyber Crime in Banking Industry:

Cybercrime refers to any criminal activity carried out on a computer or over the internet. In other
words digital misconduct is referred to as cybercrime where the criminal exercises a number of
wrongdoings such as money transfers and withdrawals via unauthorized access by using the
computer or any other electronic devices and the internet.

To narrow down the landscape in today's globalised world, the banking industry offers many
services to their clients and consumers, such as online banking and credit card services. "Online
payment with a debit card Customers can access all types of bank facilities 24 hours a day, and
they can conveniently transact and run their accounts from anywhere in the world using the
internet and cell phones”. As we all know, these services are useful to customers, but they also
have a dark side, which includes hackers and robberies.
They take advantage of those services by breaking into banking websites and customers'
accounts, causing chaos in accounts and theft of money from customers' accounts, the best
example was "in which one hacker took one rupee from each account but received a large sum of
money with that one rupee."

1.3 Need of study:

Digital banking is playing unique role in strengthening the banking sector and improving service
quality in commercial banks .Majority of commercial banks are also adopting electronic banking
services to attract their customers. Although there is a rise in electronic channels of banking in
commercial banks but customers still have fear towards their safe n secure electronic banking
operations. This paper tries to present the meaning and definition of cyber crime in the
legislation in India which deals with violations relating to the use of or is concerned with the
abuse of computers or other electronic gadgets‟. This paper attempts to create awareness with
respect to various cyber crimes and cyber laws related to banking operations.

1.4 Objectives:

1. To understand how cybercrime operations work

2. To study cybercrimes and its implications on the Banking Sector

3. To understand fraud\ fraud detection in the sector under study

4. To identify the complaints received, solved and pending

5. To analyze and use the preventive measures available to control frauds.

1.5 Limitation of Study:

Obtaining information from the cyber crime handling authorities is very difficult, as they
like to keep privacy and confidentiality in managing the cases. Due to the restrictions in
providing permission to collect information for their privacy policy, some of the offices could
not cooperate due to the time constraint. The research had some difficulties while obtaining
permission for conducting even the pilot study in their departments.
 CHAPTER: 2

LITERATURE REVIEW
Ankita P. (2011)

The author has discussed about the E commerce activities in India, the competitive and
anticompetitive factors affecting the E commerce future. Major focus is on the credit card
activities affecting the E commerce. In the paper author has also discussed some international
case studies.

Lastly the role of CCI in dealing these issues is discussed.

Nappinai N. S. (2010)

The author in his paper “Cyber Crime Law in India has law kept pace with Emerging Trends?
An Empirical Study” highlighted some important provision of the criminal laws in India relating
to data protection, privacy, encryption and other cyber crime activities and to the extent said
provisions are enforced to fight not just the present but future trends in Cyber Crime.

Susheel B. and Durgesh P. (2011)

Authors in their paper “Study of Indian Banks Websites for Cyber Crime Safety Mechanism”
discusses that security plays an important role in implementation of technology specially in
banking sector. Paper talks about the cyber security required at the core banking level as the
money is just only single click away. Through this paper authors have tried to put forward
different issues that Indian banking system face and importance of cyber security mechanism.
 CHAPTER 3

RESEARCH METHODOLOGY
Research design:

The formidable problem that follows the task of defining the research problem is the preparation
of the design of the research project, popularly known as the “research design”. Decision
regarding what, where, when, how much by what means concerning an inquiry or a research
study constitute a research design .a research design is arrangement of condition for collection
and analysis of the data in manner that aims to combine relevance to the research purpose with
the economy in procedure.

The research design which has been used in the project report is descriptive in nature .

Descriptive research:

Descriptive research had been chosen because researchers can understand the factors affecting
the purchase intention, by surveying the sample in context of Ipoh consumers. The causal
relationship of each variable will also investigated in the study.

Quantitative research:

Quantitative research had been chosen since this study is needed to generalize the data and
quantification the gathering and analysis of the data. In addition, the main concern of the study is
the hypotheses testing and of course the relationship between the variables. Thus, quantitative
approach is an appropriate way for this study.

Sample design:

The sample design which has been use in this project report is sample random sampling.

Sample Size:

We choose more than 61 citizens my respondents. They were selected by random sampling
method because in this case systematic sampling is not possible since one cannot say about the
awareness of cyber crime in banking sector.
Sampling:

The data was to be collected only from the citizen who are relate with banking concern. A
questionnaire was prepared and interviewing with them.

A decision has to be taken concerning a sample unit before selecting the number of samples. It
may be geographical as well as individual.

Analysis:

Then analysis of the questionnaire filled by the citizen is done on the percentage base analysis &
theoretical base analysis.

Data Collection:

Sources of Data Collection: Basically there are two types of data i.e. secondary and primary:
The information collected is secondary data. The information is collected from through the
various pamphlets and broachers of the company.

Primary Data

Primary data is the data that was developed from first-hand experience for the specific purpose
of researchers study under consideration. The people involved in the data analysis therefore are
familiar with the research design and data collection process. The researchers used of primary
data to address specific questions, and performs their own analyses of the data they collected.

Secondary Data

Secondary data is often readily available. It is defined as the information gathered for purposes
other than the completion of a research project. Secondary data is the data collected from a
source for the purpose to provide a better understanding on research problem. It is also used to
gain initial insight into the research problem. Secondary data is collected from external sources
such as books, journals, research articles and internet database.
Questionnaire design:

Closed-ended/ structured questions were adopted to form the questions where the respondents
have to answer according to a set of limited choice of answer. The closed ended type of
questions can help to make the data collection easier as the responses from a large number of
samples are uniform and not out of the box. In context of respondents, it is easier for them too as
they can understand the questions easier and choose the answers in the box. It is a time saving
method too. In short, the closed-ended questions are chosen since it convenient the parties that
took part in the research. The questionnaire is covered with a page containing the brief
introduction and purpose of this research. Questions are formed and modified by referring to the
past studies of other researchers. The questionnaires are formed by using simple English to
ensure the understanding of the respondents towards the questions. We asked a total of 13
questions in the questionnaire, and received a total of 61 responses to the questionnaire.
 CHAPTER: 4

DATA ANALYSIS & INTERPRETATION

Source: Data collected through Questionnaire.

1. AGE GROUP

15-25 years 25-35 years 35-50 years above 50

7%

18%

13% 62%

The pie chart shows the distribution of people by age group in population. The largest age group
is 35-50 years old, making up 62% of the population. The next largest age group is 15-25 years
old, at 18%. The age groups 25-35 years old and above 50 years old make up 13% and 7% of the
population, respectively.

2. GENDER

MALE
FEMALE

The pie chart shows the distribution of cyber crime by gender. The red circle represents the
female and the orange circle represents the male. The female percentage is 60% and the male
percentage is 40%. This suggests that males are more likely to commit cyber crime than females.
3. Are you aware about E-banking, mobile banking?

Yes No

2%

98%

The pie chart represents that the population is aware about banking electronic facilities.

4. Which mode of transaction do you prefer?

45

40

35

30

25
Response

20

15

10

0
E-banking Mobile apps Card payments Offline
Mode of Transaction

The above chart showing that population is more familiar of using mobile apps followed by
offline transaction then followed by card payments and last e- banking is preferable by less
population.
5. Have you heard about cybercrime in banking?

Yes No

The pie representing that the awareness is high in the public about frauds and crimes in the
banking system.

6. Which type of cybercrime do you know?

40

35

30

25

20

15

10

0
Phishing Ransomware Malware Identity theft scamming

The bar chart represents the identity theft is more aware in public. Then followed by scamming,
phishing, malware and ransomware.
7. Have you ever been encountered with such?

Yes
43%
No
57%

The pie chart representing that near to 40% of respondents faced any of cyber crime activity.

8. Mode of cheating you faced?

Phone call SMS or Email Online fraud none

25%

49%

15%

11%

The pie chart clearly shows the 25% of respondents faced cyber fraud activity in the form of
phone calls, and then followed by SMS or EMAIL, then online frauds.
9. Have you filed complaint against fraud?

Yes No

23%

77%

The above pie chart representing that the people faced cyber frauds have not taken any further
action through judicial. There is also an assumption that people may not aware to where file
complaint against the fraud.

10. Have you stopped shopping online due to this issue?

I don't shop online

I do shopping online very frequently

Does it only on high trusted websites

Stopped it completely

To some extent

0 5 10 15 20 25 30

The chart shows the percentage of people who shop online in different ways. The largest
percentage of people (30%) shop online very frequently. This is followed by 25% of people who
only shop online on high-trusted websites, 20% of people who have stopped shopping online
completely, 15% of people who shop online to some extent, and 10% of people who do not shop
online at all.This suggests that there is still some level of distrust or uncertainty about online
shopping among some people.

11. Do you use antiviruses/ VPN or any other tool to get secure access to
online websites?

Yes
No

The half of the population have securing their data with the help of antivirus and remaining half
are not have the antivirus or else not aware.

12. Do you think that the laws in effect are able to control cybercrime?

strongly agree Agree Strongle disagree

Disagree Neutral

21%

36%

33%
7%

3%
The chart represents that the laws are known to population and majority of the population agree
that the laws for prevention of these king of frauds are helpful.

13. Which authority adjudicate cybercrimes in banking?

Banks
18%

Police
48%

RBI
34%

The pie chart represents that the awareness in the population about which judiciary helps to
complain for cyber banking frauds. According to the chart, half of the population have known
the judiciaries correct.

Testing of Hypothesis:

Using Z- Test, since the sample size is large.

H01: There does not exist any significant difference between the cybercrimes and the customer
confidence of online banking.

p 1−p 2
z=

√p1 p2
+
n1 n2

z- test for proportions:

Rating:- High: 1-3

Low: 4-5
 Attribute High Low %High %Low
Reducing in Online 19 42 0.31 0.69
Shopping

Attribute Z calculated Significant Value Result

Reducing in Online -2.97 -1.96 – 1.96 Reject

Shopping

As the calculated value of z lies outside the area of acceptance, hence we reject the null
hypothesis. Hence we can conclude that the cybercrimes affect the confidence of the consumers
who do online shopping.
 CHAPTER 5

KEY FINDINGS AND CONCLUSION

1. The cybercrimes affect the mentality of the people and reduce their ability to conduct
any financial activities online. The study tells how the cybercrimes are affecting the
mentality of every age group.
2. The study tells that the people think that the laws set for the control of cybercrimes are
not enough to control the cybercrimes.
3. Study also shows that the age group of 15- 25 years are the main targets of the
cybercrimes. It is the serious problem as this is the youth of the country.

Conclusion:
The problem of cyber crime faced by every country in the modern world however there are
only number of countries who have enacted laws to control the cyber crime with
international perspective. Cybercrime has global character and the offender is going to be in
someplace else and committed offence in other part of the world, thus the active co-
operation of the international community is required to control the cyber crime and also in
making the more stringent law with international scenario which deals with the cyber crime.
This problem can easily be sorted out if all the countries come together and form a model
laws on which every country enact their national laws.

Suggestions:
1. Improvement of technology is in need of the days. Cyber crimes are such types of crimes
which can primarily be prevented along with other measures. Technological improvement
may be helpful for detection, prevention and commission of such crimes.
2. Special laws on cyber crime are required to be passed to deal with the new form of crimes
and to protect digital data. It will include Intellectual Property crimes and crimes relating to
human rights.
3. The Government has to create a special branch of Cyber crimes and Intellectual Property
Crimes within its criminal infrastructure, so that the enforcement personnel may take quick
action against the Cyber Criminals.
4. It is necessary to spread awareness through various campaigns about the cybercrimes. It is
also necessary to inform both banks and the customers about the danger and safety
precautions. Customers must also be given instructions on how to stay safe when using bank
websites and how to verify the legitimacy of any sources that are asking information of
personal accounts.