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CYBER CRIME AND THE E-COMMERCE WORLD

Posted on May 17, 2013 by Runjhun

With the Internet becoming available at the touch of a button and wannabe computer whiz kids dabbling in hacking for sport, cyber crime has seen an unprecedented upsurge. What makes it infinitely more dangerous than any other crime is the comparative lack of awareness and identification. How could you be expected to know that behind the innocent looking website lurks a compulsive hacker, or worse, consummate identity thief?

In India, the law on commission of cyber crimes is highly restricted. The Information Technology Act, 2000 is the extent of all there is with respect to cyber law in India. Generally, cyber complaints may be filed for hacking, phishing, identity theft, child pornography, piracy, cyber stalking, credit card fraud and the like.

Cyber crime complaints, when taken in a more liberal sense, are commonly accepted to mean any crime committed with the use of or against a computer or a group of computers. And that, right there, is where the Information Technology Act, 2000, starts to look like a damsel in distress. With the initiation into the marvelous world of smart phones and tablets becoming a rite of passage of sorts for adolescents, restricting cyber crimes to only denote crimes committed with the help of computers is utter ignorance. Again, another one of the many the gaping lacunae the Information Technology Act, 2000 suffers from is that it makes a number of the offences, such as hacking, violation of privacy and tampering with computer source documents, bailable, which puts a big question mark upon its effectiveness.

Cyber Crime Complaints and the modus operandi of the Cyber Crime Cells

A complaint for the commission of a cyber crime may be filed with the in-charge of the cyber crime cells which is present in a number of cities. Even if such a cell is not present in your city, you may file a complaint with the nearest cyber crime cell, provided you brave the dilly-dallying over jurisdiction, which is the hallmark of the Indian Police.

To file a complaint regarding the commission of a cyber crime, it is absolutely imperative that you have certain documents like the server logs, the receipt (if any, and if there is none, that should probably have been your first clue) or any other communication that you may have received from the website, along with a list of the people you suspect may have been involved with the commission of the crime. Alternatively, you could also shoot the cell an email at their respective email addresses. Although the Information Technology Act, 2000 does not expressly provide for a set procedure for the filing of a cyber complaint, the websites of a majority of the cyber crime cells in the country have provisions for the registering of such e-FIR.

The registration of cyber complaint on the website of the cyber cells itself counts as an FIR. Therefore, it is not required that another one be lodged again. After the filing of an FIR for a cyber crime, the police are required to do the usual investigation (or the lack of it) and present the case before a Magistrate. However, one must regularly follow up with the police officer or the Station concerned so as to ensure that their complaint is actually taken seriously.

Consumer Protection Act, 1986: Knight in Shining Armour?

In case a consumer wishes to evade the apathy of the Indian Police, there is another way out. Enter Consumer Courts. Complaints for issues that are related to e-commerce may also be filed under the Consumer Protection Act, 1986. The procedure is obviously similar to that which would be followed in case of a regular Consumer Complaint before the District Courts.

The major edge that the Consumer Protection Act, 1986 has over the Information Technology Act, 2000 is that it deals with the economic loss suffered by the victim and compensates him/her accordingly. Also, one does not need a lawyer to defend oneself in front of the District Forum, which again makes the Consumer fora the weapon of choice for consumers against cyber crimes.

The proverbial can of worms that is E-Commerce

In an age where the Wikipedia is the ultimate authority for anything and everything, the demand for e-commerce portals and the resulting complaints for online fraud should hardly be a shock. According to Ankur Singla, CEO, Akosha, out of the 11980 complaints received by Akosha for e-commerce in the first quarter of 2013, almost 58 percent related to deficiency in delivery (such as delivery of damaged goods, delivery of a different product or non-delivery of goods, even after the payment has been made), 29 percent were for refund of money for non-satisfactory products, while the rest had different concerns.

The Internet is rife with companies looking to make quick money and the reluctance on the part of the customers to step outside the comfort of their homes for shopping (blame it on the sweltering mess of a weather that is the Indian summer) acts as encouragement to completely phony enterprises to set up their own versions of online shopping. Timtara, the brainchild of Arindam Bose, who was recently arrested on charges of Internet fraud of over twelve lakh rupees, is a perfect example. One would think that with the stringent requirements for starting a lawful e-commerce venture would act as a discouragement, but even so, cyber crime continues to increase at an astonishing rate.

The Consumer Protection Act, 1986, only covers that spectrum of cyber crimes, which result in economic losses to the Complainant or in cases where there is ‘deficiency in services’ or ‘defect in goods’ or ‘unfair trade practices’ have been employed by the trader/seller or where goods and services that are not genuine (spurious goods and services) are marketed as such. In the event that any of this is done with the help of a computer or a laptop, it would come under the definition of a cyber crime. More often than not, cases that fall within the ambit of the Consumer Courts involve some sort of pecuniary loss to the Complainant, which is required to be made good by the Opposite Party. The Courts do not concern themselves with the mode of commission of the crime, but only with the final outcome vis-a-vis the customer, therefore providing a more effective structure for consumer protection.

Shortcomings under the Consumer Protection Act, 1986

One of the few roadblocks the 1986 legislation suffers from, on the way to providing justice, is that the consumer generally is required to file the complaint where the company has its registered office or branch office or service centre or even marketing office. For many of the customers, such a procedure is not practically feasible if they live in separate states or even different cities. Though such a complaint may also be filed at the place where the ‘cause of action’ arises, in case of e-commerce transactions, it makes for a very difficult thing to justify in Court.

The Act is also defenseless against companies that have ceased to exist or that have been shut down, unless and until the whereabouts of their erstwhile owners may be found. If an online enterprise vanishes into thin air after the consumer has suffered his loss, the latter will be required to bear the loss so suffered. In such a case, he has no remedy but to take the matter up with the local police or the cyber crime cell.

Desperate times, stringent measures

In view of the recent scams that have taken place online, in the form of fake online retailers, travel companies, etc., it is high time that the government takes cognizance of the fact that cyber crime is here to stay and provide for efficient measures to curb the same. Where the perpetrators of crime are a step ahead of the law enforcement agencies, the consumer will always be at the receiving end. Judges or Court officials must be provided special training to deal with technology related matters, so as to better their understanding of the cases they deal with. Since traditional litigation is apparently insufficient to combat high tech crime, there is all the more need for bringing in newer approaches through Electronic Courts (E-Courts) and Online Dispute Resolution (ODR). These are already in vogue abroad and need to be incorporated into the Indian system to prevent E-Commerce experiences from turning into nightmares for the customer.

- Vasudha Misra, IInd Year, RMLNLU

Picture from here.

Will Local Body Tax have any repercussion on innocent consumer?

Posted on May 14, 2013 by Runjhun

Mr. Rajesh Puranik landed at Mumbai airport from the States last week to shop extensively or his impending wedding and was puzzled to read the slogan ‘No LBT, No OCtroi’ on the shutters of shut down shops. Mr. Puranik left the country today morning without completing the task at his hand. Why so? Why could not Rajesh shop?

The answer is very simple; all the shops in Mumbai have not opened for public for almost a week now.

One may again ask the same question; WHY?

The reason being the traders are protesting against the Local Body Tax (LBT) that will be charged to them. The Chief Minister has clearly stated that the agitation may continue but he is not willing to bend the rules with respect to LBT and all the traders are obliged to abide by the rules.

Why is LBT introduced?

Prior to LBT, Octroi Tax was levied on the traders. Octroi was a local tax collected by the State Government or the City Municipality on articles brought into a town for local use. Levy of Octroi was based on the value, weight, length and number of articles and the basis of levy would vary from State to State or even between different local bodies within a State.

In 1965, Bombay Muncipal Corporation (BMC) introduced Octroi Tax in Mumbai. It was a tax to be levied on specified articles at their time of entry into the limits of the Greater Bombay for consumption, use or sale.

Octroi Tax is an age old concept & it also leads to serious traffic problems at the entry points of city, so a need was felt to replace this act. Till March 2013, almost all the countries in the world abolished Octroi Tax except Euthopia & one Indian State Maharashtra.

Finally in April 2013, Maharashtra abolished the Octroi tax & replaced it with LBT.

What is LBT?

LBT is the tax which will be imposed by BMC on the entry of goods into a local area for consumption, use or sale therein.

It is a self assessment or account based method of paying local tax, where the traders declares their tax liability by submitting records. Unlike in the Octroi regime, trucks carrying goods will not be subjected to physical checking at check posts.

What is the difference between Octroi and LBT?

Octroi, abolished in almost all municipalities in state, is paid every time a consignment enters the city, at octroi check posts whereas LBT attempts to speed up the goods movement, stressing self-declaration of goods by traders who will maintain LBT accounts.

What formalities are required for LBT?

Traders whose annual turnaround is more than Rs. 3,00,000/- have to register themselves with the BMC. Traders have to compile list of all goods procured within the month, feed the matter into the software provided by the BMC to check their LBT liability. They have to make payment once every 40 days using online portals, cheques, demand draft or cash through a designated bank or counters of the civic bodies.

Who is liable to pay LBT?

Any trader with a turnover of purchases and sales more than or equal to Rs 5000/- will have to pay LBT. This will include almost every trader even local kiranawala or even local panwala.

Why are traders opposing LBT?

The LBT Officers can check any vehicle at any point in time; they can inspect traders premises and also verify records for past 5 years. The Officers have the right of attaching traders’ property too.

It is the contention of traders that when Value Added Tax (VAT) was introduced they were promised by the government that after VAT all other taxes like Octroi would be abolished. However two years back, the government decided to increase the VAT by 1-2% stating that the government needed it to cover the amount that was not being collected after Octroi was stopped. The traders’ fraternity hence feels deceived by the Government and also does not want to get involved in additional paperwork required under LBT.

Should a consumer be worried about LBT?

VAT is in place across the country, LBT will be like double-taxation. Prices of goods are affected by VAT as well as by state or municipality-level taxes. Also, complying with various rules on self-declaration, record maintenance, account books, etc. could be an added cost under the LBT regime, which will indirectly be shifted to customers.

Further increment in tax will increase the cost of consumers’ lifestyle too.

For example: There is difference in price of petrol and diesel in various cities, Mumbai prices is higher than Delhi prices because of Octroi. After the introduction of LBT almost all the commodities that the consumers buy in Mumbai will become costlier than any other city.

Picture from here.

Identity Crisis! A Consumer’s True Tale Of Loss Due To A Bank’s Negligence.

Posted on March 13, 2013 by Runjhun

Tadka Take

Did you know that RBI regulations require that every person withdrawing an amount greater than Rs. 50,000 via cheque must carry an identity proof?

More importantly, does your bank know this?

Before if it doesn’t know this or doesn’t comply with this regulation, you may be under a genuine risk of losing moeny to any fraud walking in with a cheque and withdrawing money from your account.

Don’t think this is possible? We too thought so, until Sanjeev Kumar came to Akosha with a story that truly scared us. Below is his story in his words.

Consumer Story

I got a cheque of Punjab National Bank numbered- 487459 worth Rs. 30,00,00/- issued by Anand Mohan Prasad. I deposited it on same day to a/c 1255000105101487 for which I got an acknowledgement . The cheque, however, got liquidated and the amount was paid to other person without my knowledge and hence I lost all the money. Following all drama when I asked to bank for identity proof of the person who got my money, they refused to provide me the same. RBI’s circular for KYC/AML document – RBI/2011- 12/72 DBOD. AML. BC. No. 2 /14 .01.001/2011-12 July 1, 2011 clause 2.5 says that every customer withdrawing more than Rs. 50,000/- from cheque have to submit identity proof. In spite reminding the bank several times in written, they have refused to cooperate with me. It has been over one and a half month but I am yet to hear from either RBI or PNB.

Tadka Take 2

This consumer’s plight is extremely disturbing not only because the consumer lost a huge sum money on account of bank’s negligence but also because it reveals the casual attitude of the bank towards something as fundamental as an RBI guideline. Such an attitude exposes the issues in the system as a whole that make every consumer in this country vulnerable to such frauds. We really hope that the bank rectifies its ways and not only responds and addresses this consumer’s concerns but also takes stringent measures to avoid such instances in future.

Mac Troubles! A Consumer True Experience About Defective Macbook Horrors!

Posted on March 1, 2013 by Runjhun

Tadka Take

Apple symbolizes an extremely coveted aspiration in today’s world. But when a consumer who acquires his dream Mac gadget and it comes with its own harassment plan of defects and issues. This is what exactly happened with Col. Ramdas Buche when he purchased his new Macbook Pro. Below is his story in his own words.

Consumer Story

I wanted to purchase a high end and extremely efficient system which would give me long term immaculate service. Accordingly I went in for purchase of Macbook Pro 13″ from an agencycalled Algorithms in Nagpur. To my surprise in the first week of its purchase it went to service center because it could not load and run CD. Next week it was sent again because it could not read or write CD. As I went along, again help was sought because it could not pick up any of the peripheral Hardware like scanner, printer, data card etc. running otherwise smoothly with available machines with me. Past month was the climax of its hardware failure and the machine was to be sent to service center twice because it was not booting at all and also twice screen display had gone blank separately resulting in change of certain hardware components. You will agree with me that once an engine of brand new car is opened within first week of its purchase then it keeps going to Garage frequently. Similar thing seem to have happened in case of this purchase and I have now ran out of patience because after purchase of MacBook on 26 Apr 2012 till 26 Aug 2012 i.e. within the period of four months it has been to service center six times that too with ever increasing fresh defects each time relating to Hardware failure of serious nature. Thus one knows what future holds for this particular machine piece. Frankly speaking , I had gone in for purchase of first rate product from best Agency because I sincerely wanted very efficient, reliable and hassle free service from the product on longterm basis and Apple being the indisputable world leader and Algorithms being the best agency who has carved niche for itself not only in Nagpur but whole of Vidarbha. However with ever increasing problems I had not been able to use this machine even for single day after purchase and I am also scared to carry it with me for my tours to other cities or abroad because of its abrupt failing tendencies. What would I do if this fails to open up or suddenly goes blank when I am away from Nagpur to to other city or abroad and who is going to fix it up for me. I will be also making scene of myself in crucial presentations or data display when it fails like it is behaving presently for very routine and basic functioning due to defective hardware and it would inadvertently point to my professional failure. As a result of its periodic packing up in above manner frequently and unreliable tendencies ,I am forced to depend on my old Desk top and laptop for all the possible mobile or static functions as hither-to-before after purchasing this Macbook. As I have said earlier APPLE is indisputably worlds best brand and I fully understand that an odd piece may go defective and in the present case it seems that I am the victim of such probability.

Tadka Take 2

While Akosha’s team has been trying address Col. Buche’s issues as soon as possible, it is undeniable that he has undergone a lot of harassment. It is the duty of both brand as well as the authorized agency to ensure that such instances do not recur with other customers and even in the unavoidable cases where such issues do arise, they are addressed as soon and as efficiently as possible.

Dear Fraud! ICICI Bank Held Liable For Customer Losing Money In Fraudulent Transaction, To Pay 1.75L.

Posted on February 19, 2013 by Runjhun

complaint against ICICI Bank, to pay 1.75 lakh to consumer who lost money due to fraud

Imagine, one fine day, over 1 lakh are withdrawn from your account–without your knowledge or involvement.

We for one would have definitely had a mini heart attack.

But it happens, way more frequently than any of us would be comfortable to admit. And in most cases, the bank refuses liability, pinning the blame on the consumer and washing their hands off the issue completely.

A consumer forum is New Delhi, however, decided to depart from the norm and pinned the blame squarely on the bank, making them pay up not only the lost amount but also compensation for harassment.

A consumer, holding a salary account in ICICI Bank, received 5 SMS alerts in January 2009, each relating to withdrawal of Rs.25,000 from his salary account, totalling Rs. 1.25 lakh, within minutes. He immediately contacted the bank, which, after conducting a probe, informed him that some fraudsters had removed the money from his account.

The complainant had alleged that the bank was negligent with regard to safety of customers’ confidential information, including password, and as a result he suffered financial loss. The bank obviously denied that it was negligent, and contended that the possibility of involvement of the consumer himself in the alleged fraud cannot be ruled out.

The forum however was less than sympathetic towards the bank considering the idea of the consumer himself sharing the information absurd and considered the possibility of involvement of the bank employees in the fraud was much more probable. The forum held that there was gross negligence and deficiency in service on the part of the bank which caused the heavy financial loss to the complainant and directed the bank to return him the amount along with compensation of Rs.50,000.

ICICI Bank to pay Rs.1.75 lakh for customer’s loss due to fraud (Livemint)

Delayed Flights? Here Are 3 Things You Must Know To Avoid Trouble!

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Posted on February 19, 2013 by Runjhun

Delayed Flights? Here Are 3 Things You Must Know To Avoid Trouble

Delayed flights are not exactly ‘drag that airline to consumer forum’ situations. Even if they are, more often than not, it is distant future and not an immediate solution. But delayed flights definitely are ‘tear every strand of hair off my and everyone else in vicinity’s scalp’ situations. The frustration is unmatched and lack of options can easily blow the top for even walking, breathing Budhhas.

A troubled call for help from an Akosha regular, seeking advice on what must be done when the flight was delayed made us realize that there may be more consumers who can do with an easy to refer manual on options available in case of delayed flights. While this is definitely not an all exhaustive guide on the issue, it is a start—enough to acquaint you with the basics when faced with the delayed flight crisis.

Be Calm and Be Polite — Even though it is precisely the opposite of what you really want to do at the moment, be calm and be polite to the airline staff. Always remember that a delayed flight is not exactly the fault of the person across the counter. The airlines did not delay the flight on purpose to derive some sort of sadistic pleasure out of your inconvenience. In most cases, the delay is triggered by the unavoidable and your yelling and screaming can’t change that. What it can definitely do is create more troubles for you, inviting wrath and lack of cooperation from the only people who can possible help you—the staff. So, don’t yell! Calmly inquire about your options and choose whatever suits you. It may not always be the quickest way to your destination, but it may well be the only one. Always remember, the airlines are not obligated to find you the quickest possible option. In worst case scenario, they are responsible for ensuring food and lodging (if you are in transit and have missed the connecting flight—the catch here is that both flights should belong to the same service provider) till the next option is available and make sure you are on your way, eventually. Make your choices wisely and don’t let anger fuel the fire of your troubles.

Always Engage Multiple Means of Communication—Which automatically requires you to always take the precaution of storing your airline’s number in your phone. If the line at the counter is too long, try contacting their customer care via phone while you wait for your turn. Trying to reach an airline via phone in India, especially when there has been a crisis hardly qualifies as a wise advice. However, it is worth a try and if you are able to connect to them, it may quicken the process and hence cut down your trauma dramatically. This too does not mean that you will always find the quickest option to your destination, but it does mean that you will find an option at the earliest and this in itself, as anyone who would have ever been stranded at an airport would know, is nothing short of relief. Remember, sometimes waiting for the delayed flight to actually take off may as well be the only option but it is worth being aware of it being so, as soon as possible.

Plan In Advance, Know Your Options — For instance, if you are travelling through North India in January, delays due to fog are inevitable. Take them into account and plan accordingly, so that any loss of time due to flight delays is factored in. Remember, delays due to weather are deemed nobody’s liability and if you suffer due to them, chances are nobody shall pay for it except you. Apart from the delays on account of weather, airlines are liable to give a proper reason for the delay or else they may be held liable, eventually. The operative word is eventually. Even if the flight has been delayed for reasons that are not good enough, there is nothing much you can do about it at that very moment. While we are a staunch advocate of taking the issue to the consumer forum and make the airline pay up in due course of time, a lot of immediate heartburn and impending loss can be avoided if you always factor in a possibility of delay in your plans, weather conditions notwithstanding.

None of the advices listed above imply that you should quietly bear the unreasonableness of your service provider. In fact, if the inconvenience is unjustified, every consumer should drag the responsible parties to the consumer forum and claim compensation. However, in several instances, the delay may be justified in the sense that it is triggered by unavoidable circumstances or weather conditions. In such instances, there is nothing much to be achieved by losing cool or creating a scene. Knowing the options and proper planning are a passenger’s best bet and being prepared in advance can go a long way in avoiding a plethora of avoidable, add on troubles.