Cyber Fraud and Legal Responsibility 

Lessons From Indian Courts

By Adv. Utkarsh Arya | Ciminal & Cyber Lawyer , Jaipur

In today's fast-paced digital world, cyber fraud has become one of the most widespread and dangerous forms of crime. From phishing emails to fake job portals, from identity theft to payment gateway scams and voice cloning by AI — the threats are endless and constantly evolving.

But the question is: What does the law say?
And more importantly: How are Indian courts responding to such digital crimes?

Landmark Case: -

NASSCOM V/S AJAY SOOD & OTHERS (2005)

One of the earliest and most influential cases of cyber fraud in India is the NASSCOM V/S Ajay Sood judgment, delivered by the Delhi High Court in 2005.

ØFacts of the Case:

• The accused created fake email IDs impersonating senior officials of NASSCOM.
• They contacted job seekers and collected money by falsely promising employment.
• NASSCOM filed a civil suit and a criminal complaint for phishing and email spoofing.

ØCourt’s Observation:

“Phishing is a form of net-based fraud and cheating. It is an act of misrepresentation and deception. It misleads the victims into believing that they are dealing with a genuine party.”

The court held that such acts were not just unethical but also punishable under:

• Section 420, Indian Penal Code (Cheating)
• Section 66C and 66D, IT Act, 2000 (Identity theft and impersonation using computer resources)

ØLegal Provisions Involved

lInformation Technology Act, 2000:

• Section 66C – Punishment for identity theft
• Section 66D – Cheating by impersonation using a computer resource
• Section 43 – Unauthorized access and data theft

lIndian Penal Code (IPC):

• Section 419 – Cheating by impersonation
• Section 420 – Cheating and dishonestly inducing delivery of property

Why This Case Matters

The NASSCOM judgment marked the beginning of judicial recognition of cyber fraud as a serious criminal offence, not just a civil wrong. The court also paved the way for intermediary liability, which means that even tech platforms may be held responsible if they enable fraud knowingly.

Advice for the Public

ØAs a criminal and cyber law practitioner, I have handled several cases where:

• Innocent users lost lakhs in fake UPI refund scams
• Businesses suffered due to compromised email IDs
• Senior citizens were tricked through phishing links

ØHere’s what you can do:

• Never click on suspicious links or share OTPS.
• Verify emails and job offers through official channels.
• Report cyber frauds at the official Cyber Crime Portal Cybercrime.gov.in
• Consult a cyber lawyer immediately if you suspect a breach.

Conclusion

Cyber fraud is no longer a vague digital threat — it’s a real-world criminal offence, and Indian courts are treating it with the seriousness it deserves. As citizens, businesses, and legal professionals, we must remain alert and informed.

“In the digital age, awareness is your best defence — and law is your strongest shield.”
                                                                                                        

                                                                                                        — Adv. Utkarsh Arya