Abstract— A lot of people in the world,
mostly Indian have a limited knowledge of the crime occurring in cyberspace,
known as cybercrime. Cybercrime happens in the world of computer and the
Internet. This kind of crime has a severe impact on our economy, lives and
society, because our society is becoming an information society, full of
information exchange that is happening in cyberspace. Our research work is
aimed at knowing the level of awareness of individuals on the existing
phenomenon in India, and their impacts on India economy. A survey was carried
out with the aims of getting these results using questionnaire as an
instrument, the responses were quantitatively analysed using some statistical
techniques. The results show that cracking, software piracy, and pornography
among others are prevalent crimes in India. While the impacts of these crimes
on Indian economy cannot be over emphasized. Recommendations were proposed on
how these crimes can be minimized if not totally eradicated. Cyber crime,
especially in India is growing at the rate of 50% per year and the number of
incidents of cyber crimes is increasing day by day. India ranks fifth in the
incidents of cyber crimes in the world.

Keywords— e-crime, cyber crime, internet, computer hacking,
pornography, identity loss, hacking, economics impact



A crime is an offense that may be prosecuted by

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Abstract— statistical techniques. The results show that cracking,
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the state and punishable by law. A cyber crime is a type of

crime which uses computers and networks as target or

weapon. Today’s necessity is to minimize the cyber crimes

occurring in various parts of the world. Cyber crimes in

India are increasing at an alarming rate. It will be better

the rate of occurrence of cyber crime patterns is predicted

for various parts of the country.Cyber crime began with

disgruntled employees causing physical damage to the

computers they worked with, with the aim to get back at

their superiors. As the ability to have personal computers

home became more accessible and popular, cyber criminals

began to focus their efforts on home users1. Further

research on this reveals that history of cybercrime was

further established that the first published report of

cybercrime occurred in the 1960s, when computers were

large mainframe systems. Since mainframes were not

connected with other ones and only few people can access

them, the cybercrimes were always “insider”


which means employment, allowed them to access into

mainframe computers, and then refers to as computer crime

rather than cybercrime. Actually, in the 1960s and 1970s,

the cybercrime, which was “computer crime” in
fact, was

different from the cybercrime we faced with today, because

availability of Internet was restricted within some sections
(e.g. US military) in that era. In the following decades, the

increasing of computer network and personal computers

transformed “computer crime” into real cybercrime.
In fact,

the former descriptions were “computer crime”,

related crime” or “crime by computer”. With the

of digital technology, some new terms like “high-

technology” or “information-age” crime were
added to the

definition. Since Internet was invented, other new terms,

like “cybercrime” and “net” crime became
the order of the

day as people began to exchange information based on

networks of computers, also keep data in computer rather

than paper. At the same time, the cybercrime was not only

restricted in target cybercrime, but expanded into tool

cybercrime and computer incidental. We therefore come to

terms with a conclusion on the meaning that cybercrime is

an evil having its origin in the growing dependence on

computers in modern life. A simple yet sturdy definition of

cybercrime would be unlawful acts wherein the computer is

either a tool or a target or both?. Defining cybercrimes as

illegal behaviour directed by means of electronic operations

that targets the security of computer systems and the data

processed by them. Cybercrime in a broader sense

computer-related crime: any illegal behaviour committed by

means of, or in relation to, a computer system or network,

including such crimes as illegal possession and offering or

distributing information by means of a computer system or


Cyber Crime refers to all activities done with

criminal intent in cyberspace. These fall into three


Cyber crime against the persons Cyber Crimes

against Business and Non-business organizations’ Crimes

against the government.

cyber crime has transformed into a money spinner

business that yields hundreds of millions of dollars and

involves lesser risk than traditional crimes. Cyber crime,

especially in India is growing at the rate of 50% per year

and the number of incidents of cyber crimes is increasing

day by day. India ranks fifth in the incidents of cyber

in the world

Meanwhile, in an attempt to uncover these crimes

billions of India is lost through these crimes annually with

little or no hope of curbing it due to its complex nature.

Most perpetrators of this crime are never caught and if at

caught, are never prosecuted because of lack of concrete

evidence, organizational and societal awareness. As a result

the extent and impact of Cybercrime is uncertain because

lack of reporting leads to uncertainty with regard to the

extent and impact of the crime. This is especially relevant

with regard to the involvement of these crimes as compared

to other organized crimes. Available information from the

crime statistics in India is lacking and if any, do not
reflect the  real  extent 
or  impact  of 
this  crime  in 
our  every-day living.





A. What is Cybercrime?

In the most general form crime can be de-fined as the

violation of law, especially a serious one Cyber crime is an

unlawful act wherein the computer is either a tool or target

both. Cyber crime consists of specific crime dealing with

computer and networks and facilitation of traditional crime

through the use of a computer. Cyber crime uses the unique

feature of Internet namely the sending of emails, speedy

publication of information through the web to any one the

planet. These criminal activities can often be faster 7

A cybercrime is a crime that is committed with the

help of a computer through a communication device or a

transmission media called the cyberspace and global

network called the Internet 2. Cyber crime has been

increasing in complexity and financial costs since

corporations, government and individual or society at large

started utilizing computers in the course of doing business.

As technology increases between governments, corporate

organizations and individuals that are involved in

international and local businesses; criminals have realized

that this is a cost effective method to make money. Efforts

to address Internet crime include activities associated with

defending networks and data, detecting criminal activities,

inquiring into crime and taking legal action against

criminals 3.Cyberspace security is crucial for maintaining

the continuity of these vital services and for preserving

public?s trust in information systems. But can this be

achieved world-wide? Well, this is a topic for another day

our focal point in this paper is all about cybercrimes and

impact on the Indian economy.6

Some examples of cyber crimes include sending

spam emails (spamming), stealing personal information

(identity theft), breaking into someone’s computer to view

or alter data (hacking) and tricking someone into revealing

their personal information (phishing), making Internet

services unavailable for users (Denial of service –DOS),

advanced free fraud 419 (aka Yahoo-yahoo), credit card

fraud (ATM), plagiarism and software piracy, pornography,

stealing money bit-by-bit in a cunning way (salami attacks)

and virus dissemination etc.So many crimes are committed

every day in the Indian cyberspace. A recent report in the

Daily Trust, (2010)by the Internet Crime Complaint Centre,

which is a partnership between the Federal Bureau of

Investigation (FBI) and America’s National White Collar

Crime Centre, revealed that India is now ranked third among

the list of top ten sources of cybercrime in the world with

8% behind the US (65%) and the UK (9.9%). 5. What

Indian government, corporate organizations and the society

at large do not know is that the heavy economic impact on

the country, (either in financial terms or otherwise), will

have an adverse consequences on unemployment rate, social

services and international reputation.

Therefore, a detailed introduction of cybercrime

needs to be presented with the view to fully analyze the

indices that make up this crime so that our government and

society will be aware of this crime and its implication on

economy. In this paper, we will introduce the origins and
the evolution of cybercrime, the different categories of

cybercrime (target cybercrime, tool cybercrime and

computer incidental).

The impact of cybercrime has been, and will be in

the future, felt by all governments and economies that are

connected to the Internet. Criminals will use the Internet,

computers and other digital devices to facilitate their

activities as long as the financial gains outweigh the

consequences when caught. Knowing about the quantity of

Cybercrime as well as the economic impact is vital for both

governments as well as businesses which could be a

necessary tool to adjust the legal and regulatory frameworks

as well as institutional capacities. Prosecutors and law

enforcement agencies must have resources, training and

equipment required to address cybercrime in order to keep

current on this newest method of crime fighting. Lack of

reporting this crime leads to uncertainty with regard to the

extent and impact. This is especially relevant with regard

the involvement of organized crime. Available information

from the crime statistics in India, if at all available,
does not

reflect the real extent of the crime or damages cause as a

result of the crime. Different motivations of private users

and businesses not to report Cybercrime is another concern

for the Government 9.

What is known is that the losses caused by

Cybercrime can be significant. Losses are not only related

direct financial losses but also necessary investments in

Cyber security and loss of reputation when incidents

happen. It is important to give guidance in this regard e.g.

reporting obligation / establishment of reporting

mechanisms (complaint center) 8.

B. Types of Cybercrimes most prevalence in Indian

(1) Assault by Threat – threatening a person with fear

for their lives or the lives of their families or

persons whose safety they are responsible for (such

as employees or communities) through the use of a

computer network such as email, videos, or phones.

(2) Child pornography – the use of computer networks

to create, distribute, or access materials that

sexually exploit underage children.

(3) Cyber laundering – electronic transfer of illegally-

obtained monies with the goal of hiding its source

and possibly its destination.

(4) Cyber stalking – express or implied physical threats

that creates fear through the use of computer

technology such as email, phones, text messages,

webcams, websites or videos.3

(5) Cyber terrorism – premeditated, usually politically-

motivated violence committed against civilians

through the use of, or with the help of, computer

technology. 9

(6) Cyber theft is using a computer to steal. This

includes activities related to: breaking and entering,

DNS cache poisoning, embezzlement and unlawful

appropriation, espionage, identity theft, fraud,

malicious hacking, plagiarism, and piracy.

Hardware Hijacking – Researchers at Columbia

University recently discovered a serious security

flaw in certain printers, as well. Many printers

automatically update their software when accepting a print
job, connecting to the Internet to download

the latest print drivers.

Spam – Unsolicited mass e-mail, known

colloquially as ?spam?, is more than annoying:

spam messages can be used to trick people into

giving up sensitive personal information (known as

?phishing?), or as carriers for computer worms and

viruses. 1

Script kiddies-A wannabe hacker. Someone who

wants to be a hacker (or thinks they are) but lacks

any serious technical expertise. They are usually

only able to attack very weakly secured systems.

Insiders- They may only be 20% of the threat, but

they produce 80% of the damage. These attackers

are considered to be the highest risk. To make

matters worse, as the name suggests, they often

reside within an organization

(7) Yahoo Attack:- Also called 419 because section

419 of the Indian criminal code has a law against

such offenders. It is characterized by using e-mail

addresses obtained from the Internet access points

using e-mail address harvesting applications(web

spiders or e-mail extractor). These tools can

automatically retrieve-mail addresses from web

pages. Indian fraud letters join the warning of

impersonation scam with a variation of an advance

fee technique in which an e-mail from Indian offers

the recipient the chance to share a percentage of a

huge amount of money that the author, a self-

proclaimed government official, is trying to siphon

out of the country

(8) Salami Attack:-Salami assaults are flamboyant

economic scams or exploits against confidentiality

by comprehensive data gathering.9



The method we employed in this research was the survey

method while the research design used was the purposive

research design technique so as to meet up with the targeted

presentation date. The survey method was used because our

aims are to get the awareness from users of the computer

vis-a-viz the Internet and to determine the impacts of these

menaces on the economy The population of this study is the

Mathematics Department and Computer Science

Department of Centurian University in order to get the

impacts from the professional while the Computer and

Internet users mostly students and Lecturers. A sample size

of 60 was selected using the random sampling procedure

from the targeted population of 120. The method used to

collect data for this study is structured questionnaire. A

of 60 copies of the questionnaire were personally

administered out of which 55 copies were retrieved in usable

form. This represents a response rate of 91.6%. 6



In India, there is no doubt that a good number of people
have turned the ethical use of information and communication technologies into
unethical activities. This problem is not peculiar to India alone, but it is a
problem world-wide and that is why it becomes imperative that organizational
data /information must be safeguarded especially these days that almost every
business is being run on line. our investigation on cybercrimes we observed its

threat to the economy of a nation and even peace and

security. Therefore there is need for a holistic approach to

combat these crimes in all ramifications. Our proposal

therefore is the need for cyber police who are to be trained

specially to handle cybercrimes in India. In addition, the

police should have a Central Computer Crime Response

Wing to act as an agency to advise the state and other

investigative agencies to guide and coordinate computer

crime investigation. We are also proposing that the country

should set up National Computer Crime Resource Centre, a

body, which will comprise experts and professionals to

establish rules, regulations and standards of authentication

of each citizen’s records and the staff of establishments

recognized organization, firms, industries etc.Forensics

commission should be established, which will be

responsible for the training of forensics personnel/law

enforcement agencies. Above all, comprehensive law to

combat computer and cyber related crimes should be

promulgated to fight this phenomenon ?to a halt. Our

proposal on the nature of law to combat cybercrime is not

included in this paper. We recommend that before anybody

enters into any kind of financial deals with anyone through

the internet he/she should use any of the search engines to

verify the identity of the unknown.




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