Article summary
Abstract
Online financial fraud has emerged as one of the most serious cybercrime challenges
in India due to the rapid expansion of digital banking, online payments, mobile financial
services, and internet-based transactions. This paper examines the legal framework,
investigative mechanisms, institutional responsibilities, and victim-remedy systems
governing online financial fraud in India. It analyses the role of the Information
Technology Act, 2000, the Indian Penal Code, 1860, financial regulations, and other
economic laws in addressing offences such as phishing, identity theft, payment fraud,
data theft, malware attacks, and cyber-enabled money laundering. The study also
highlights major procedural difficulties, including collection and preservation of
electronic evidence, maintenance of chain of custody, tracing of digital money trails,
jurisdictional conflicts, cross-border investigations, and limited forensic capacity. It
evaluates the functions of police agencies, cybercrime cells, financial regulators, and
digital forensic institutions in investigation and enforcement. In addition, the paper
discusses civil, administrative, compensatory, and restitutionary remedies available
to victims. Comparative perspectives are used to identify international best practices.
The study concludes that stronger legal definitions, specialized investigation
mechanisms, improved inter-agency coordination, enhanced digital forensic
infrastructure, public awareness, and effective victim-recovery systems are essential
for combating online financial fraud in India.