Domestic UPI Frauds: Finance Ministry Presented Data in LokSabha

Introduction

In the evolving landscape of cybercrime, attackers are not only becoming more sophisticated in their approach but also more adept in their infrastructure. The Indian Cybercrime Coordination Centre (I4C) has issued a warning about the use of ‘disposable domains’ by cybercriminals. These are short-lived websites designed tomimic legitimate platforms, deceive users, and then disappear quickly to avoid detection and legal repercussions.

Although they may appear harmless at first glance, disposable domains form the backbone of countless online scams, phishing campaigns, malware distributionschemes, and disinformation networks. Cybercriminals use them to host fake websites, distribute malicious files, send deceptive emails, and mislead unsuspecting users, all while evading detection and takedown efforts.

As India’s digital economy grows and more citizens, businesses, and public services move online, it is crucial to understand this hidden layer of cybercrime infrastructure.Greater awareness among individuals, enterprises, and policymakers is essential to strengthen defences against fraud, protect users from harm, and build trust in thedigital ecosystem

What Are Disposable Domains?

A disposable domain is a website domain that is registered to be used temporarily, usually for hours or days, typically to evade detection or accountability.

These domains are inexpensive, easy to obtain, and can be set up with minimal information. They are often bought in bulk through domain registrars that do not strictly verify ownership information, sometimes using stolen credit cards or cryptocurrencies to remain anonymous. They differ from legitimate temporary domains used for testing or development in one significant aspect, which is ‘purpose’. Cybercriminals use disposable domains to carry out malicious activities such as phishing, sextortion, malware distribution, fake e-commerce sites, spam email campaigns, and disinformation operations.

How Cybercriminals Utilise Disposable Domains

1. Phishing & Credential Stealing: Attackers tend to register lookalike domains that are similar to legitimate websites (e.g., go0gle-login[.]com or sbi-verification[.]online) and trick victims into entering their login credentials. These domains will be active only long enough to deceive, and then they will disappear.

2. Malware Distribution: Disposable domains are widely used for ransomware and spyware operations for hosting malicious files. Because the domains are temporary, threat intelligence systems tend to notice them too late.

3. Fake E-Commerce & Investment Scams: Cyber crooks clone legitimate e-commerce or investment sites, place ad campaigns, and trick victims into "purchasing" goods or investing in scams. The domain vanishes when the scam runs out.

4. Spam and Botnets: Disposable domains assist in botnet command-and-control activities. They make it more difficult for defenders to block static IPs or trace the attacker's infrastructure.

5. Disinformation and Influence Campaigns: State-sponsored actors and coordinated troll networks use disposable domains to host fabricated news articles, fake government documents, and manipulated videos. When these sites are detected and taken down, they are quickly replaced with new domains, allowing the disinformation cycle to continue uninterrupted.

Why Are They Hard to Stop?

Registering a domain is inexpensive and quick, often requiring no more than an email address and payment. The difficulty is the easy domain registrations and the absence of worldwide enforcement. Domain registrars differ in enforcing Know-Your-Customer (KYC) standards stringently. ICANN (Internet Corporation for Assigned Names and Numbers) has certain regulations in place but enforcement is inconsistent. ICANN does require registrars to maintain accurate Who is information (the “Registrant Data Accuracy Policy”) and to act on abuse complaints. However, ICANN is not an enforcement agency. It oversees contracts with registrars but cannot directly police every registration. Cybercriminals exploit services such as:

• Privacy protection shields that conceal actual WHOIS information.
• Bulletproof hosting that evades takedown notices.
• Fast-flux DNS methods to rapidly alter IP addresses

Additionally, utilisation of IDNs ( Internationalised Domain Names) and homoglyph attacks enables the attackers to register visually similar domains to legitimate ones (e.g., using Cyrillic characters to represent Latin ones).

Real-World Example: India and the Rise of Fake Investment Sites

India has witnessed a wave of monetary scams that are connected with disposable domains. Over hundreds of false websites impersonating government loan schemes, banks or investment websites, and crypto-exchanges were found on disposable domains such as gov-loans-apply[.]xyz, indiabonds-secure[.]top, or rbi-invest[.]store. Most of them placed paid advertisements on sites such as Facebook or Google and harvested user information and payments, only to vanish in 48–72 hours. Victims had no avenue of proper recourse, and the authorities were left with a digital ghost trail.

How Disposable Domains Undermine Cybersecurity

• Bypass Blacklists: Dynamic domains constantly shifting evade static blacklists.
• Delay Attribution: Time is wasted pursuing non-existent owners or takedowns.
• Mass Targeting: One actor can register thousands of domains and attack at scale.
• Undermine Trust: Frequent users become targets when genuine sites are duplicated and it looks realistic.

Recommendations Addressing Legal and Policy Gaps in India

1. There is a need to establish a formal coordination mechanism between domain registrars and national CERTs such as CERT-In to enable effective communication and timely response to domain-based threats.

2. There is a need to strengthen the investigative and enforcement capabilities of law enforcement agencies through dedicated resources, training, and technical support to effectively tackle domain-based scams.

3. There is a need to leverage the provisions of the Digital Personal Data Protection Act, 2023 to take action against phishing websites and malicious domains that collect personal data without consent.

4. There is a need to draft and implement specific regulations or guidelines to address the misuse of digital infrastructure, particularly disposable and fraudulent domains, and close existing regulatory gaps.

What Can Be Done: CyberPeace View

1. Stronger KYC for Domain Registrations: Registrars selling domains to Indian users or based in India should conduct verified KYC processes, with legal repercussions for carelessness.

2. Real-Time Domain Blacklists: CERT-In, along with ISPs and hosting companies, should operate and enforce a real-time blacklist of scam domains known.

3. Public Reporting Tools: Observers or victims should be capable of reporting suspicious domains through an easy interface (tied to cybercrime.gov.in).

4. Collaboration with Tech Platforms: Social media services and online ad platforms should filter out ads associated with disposable or spurious domains and report abuse data to CERT-In.

5. User Awareness: Netizens should be educated to check URLs thoroughly, not click on unsolicited links and they must verify the authenticity of websites.

Conclusion

Disposable domains have silently become the foundation of contemporary cybercrime. They are inexpensive, highly anonymous, and short-lived, which makes them a darling weapon for cybercriminals ranging from solo spammers to nation-state operators. In an increasingly connected Indian society where the penetration rate of internet users is high, this poses an expanding threat to economic security, public confidence, and national resilience. Combating this problem will need a combination of technical defences, policy changes, public-private alliances, and end-user sensitisation. As India develops a Cyber Secure Bharat, monitoring and addressing disposable domain abuse must be the utmost concern.

References

• https://www.bitcot.com/disposable-domains
• https://atdata.com/blog/evolution-of-email-fraud-rise-of-hyper-disposable-domains/
• https://www.cyfirma.com/research/scamonomics-the-dark-side-of-stock-crypto-investments-in-india/
• https://knowledgebase.constantcontact.com/lead-gen-crm/articles/KnowledgeBase/50330-Understanding-Blocked-Forbidden-and-Disposable-Domains?lang=en_US
• https://www.meity.gov.in/
• https://intel471.com/blog/bulletproof-hosting-fast-flux-dns-double-flux-vps

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Introduction

The role of ‘Small and Medium Enterprises’ (SMEs) in the economic and social development of the country is well established. The SME sector is often driven by individual creativity and innovation. With its contribution at  8% of the country’s GDP, and 45% of the manufactured output and 40% of its exports, SMEs provide employment to about 60 million persons through over 26 million enterprises producing over six thousand products. 

It would be an understatement to say that the SMEs sector in India is highly heterogeneous in terms of the size of the enterprises, variety of products and services produced and the levels of technology employed. With the SME sector booming across the country, these enterprises are contributing significantly to local, state, regional and national growth and feeding into India’s objectives of inclusive, sustainable development. 

As the digital economy expands, SMEs cannot be left behind and must integrate online to be able to grow and prosper. This development is not without its risks and cybersecurity concerns and digital threats like misinformation are fast becoming a pressing pain point for the SME sector. The unique challenge posed to SMEs by cyber threats is that while the negative consequences of digital risks are just as damaging for the SMEs as they are for larger industries, the former’s ability to counter these threats is not at par with the latter, owing to the limited nature of resources at their disposal. The rapid development of emerging technologies like artificial intelligence makes it easier for malicious actors to develop bots, deepfakes, or other forms of manipulated content that can steer customers away from small businesses and the consequences can be devastating. 

Misinformation is the sharing of inaccurate and misleading information, and the act can be both deliberate and unintentional. Malicious actors can use fake reviews, rumours, or false images to promote negative content or create backlash against a business’ brand and reputation. For a fledgling or growing enterprise, its credibility is a critical asset and any threat to the same is as much a cause for concern as any other operational hindrance. 

Relationship Building to Counter Misinformation

We live in a world that is dominated by brands. A brand should ideally inspire trust. It is the single most powerful and unifying characteristic that embodies an organisation's culture and values and once well-established, can create incremental value. Businesses report industry rumours where misinformation resulted in the devaluation of a product, sowing mistrust among customers, and negatively impacting the companies’ revenue. Mitigating strategies to counter these digital downsides can include implementing greater due diligence and basic cyber hygiene practices, like two-factor or multi-factor authentication, as well as open communication of one’s experiences in the larger professional and business networks. 

The loss of customer trust can be fatal for a business, and for an SME, the access to the scale of digital and other resources required to restore reputations may simply not be a feasible option. Creating your brand story is not just the selling pitch you give to customers and investors, but is also about larger qualitative factors such as your own motivation for starting the enterprise or the emotional connection your audience base enjoys with your organisation. The brand story is a mosaic of multiple tangible and intangible elements that all come together to determine how the brand is perceived by its various stakeholders. Building a compelling and fortified brand story which resonates deeply with people is an important step in developing a robust reputation. It can help innoculate against several degrees of misinformation and malicious attempts and ensure that customers continue to place their faith in the brand despite attempts to hurt this dynamic.

Engaging with the target audience, ie, the customer base is part of an effective marketing tool and misinformation inoculation strategy. SMEs should also continuously assess their strategies, adapt to market changes, and remain agile in their approach to stay competitive and relevant in today's dynamic business environment. These strategies will lead to greater customer engagement through the means of feedback, reviews and surveys which help in building trust and loyalty. Innovative and dynamic customer service engages the target audience and helps in staying in the competition and being relevant.

Crisis Management and Response

Having a crisis management strategy is an important practice for all SMEs and should be mandated for better policy implementation. Businesses need greater due diligence and basic cyber hygiene practices, like two-factor authentication, essential compliances, strong password protocols, transparent disclosure, etc. 

The following steps should form part of a crisis management and response strategy:

• Assessing the damage by identifying the misinformation spread and its impact is the first step.  
• Issuing a response in the form of a public statement by engaging the media should precede legal action. 
• Two levels of communication need to take place in response to a misinformation attack. The first tier is internal, to the employees and it should clarify the implications of the incident and the organisation’s response plan. The other is aimed at customers via direct outreach to clarify the situation and provide accurate information in regard to the matter.  If required the employees can be provided training related to the handling of the customer enquiries regarding the misinformation.
• The digital engagement of the enterprise should be promptly updated and social media platforms and online communications must address the issue and provide clarity and factual information. 
• Immediate action must include a plan to rebuild reputations and trust by ensuring customers of the high quality of products and services. The management should seek customer feedback and show commitment to improving processes and transparency. Sharing positive testimonials and stories of satisfied customers can also help at this stage. 
• Engaging with the community and collaborating with organisations is also an important part of crisis management.

While these steps are for rebuilding and crisis management, further steps also need to be taken:

• Monitoring customer sentiment and gauging the effectiveness of the efforts taken is also necessary. And if required, strategic adjustments can be made in response to the evolving circumstances. 
• Depending on the severity of the impact, management may choose to engage the professional help of PR consultants and crisis management experts to develop comprehensive recovery plans and help navigate the situation.
• A long-term strategy which focuses on building resilience against future attacks is important. Along with this, engaging in transparency and proactive communication with stakeholders is a must.

Legal and Ethical Considerations

SMEs administrators must prioritise ethical market practices and appreciate that SMEs are subject to laws which deal with defamation, intellectual property rights- trademark and copyright infringement in particular, data protection and privacy laws and consumer protection laws. Having the knowledge of these laws and ensuring that there is no infringement upon the rights of other enterprises or their consumers is integral in order to continue engaging in business legally. 

Ethical and transparent business conduct includes clear and honest communication and proactive public redressal mechanisms in the event of misinformation or mistakes. These efforts go a long way towards building trust and accountability. 

Proactive public engagement is an important step in building relationships. SMEs can engage with the community where they conduct their business through outreach programs and social media engagement. Efforts to counter misinformation through public education campaigns that alert customers and other stakeholders about misinformation serve the dual purpose of countering misinformation and creating deep community ties. SME administrators should monitor content and developments in their markets and sectors to ensure that their marketing practices are ethical and not creating or spreading misinformation, be it in the form of active sensationalising of existing content or passive dissemination of misinformation created by others. Fact-checking tools and expert consultations can help address and prevent a myriad of problems and should be incorporated into everyday operations.

Conclusion

Developing strong cybersecurity protocols, practising basic digital hygiene and ensuring regulatory compliances are crucial to ensure that a business not only survives but also thrives. Therefore, a crisis management plan and trust-building along with ethical business and legal practices go a long way in ensuring the future of SMEs.  In today's digital landscape, misinformation is pervasive, and trust has become a cornerstone of successful business operations. It is the bedrock of a resilient and successful SME. By implementing and continuously improving trust-building efforts, businesses can not only navigate the challenges of misinformation but also create lasting value for their customers and stakeholders. Prioritising trust ensures long-term growth and sustainability in an ever-evolving digital landscape.

References 

• https://SME.gov.in/sites/default/files/SME-Strategic-Action-Plan.pdf 
• https://carnegieendowment.org/research/2024/01/countering-disinformation-effectively-an-evidence-based-policy-guide?lang=en 
• https://dcSME.gov.in/Report%20of%20Expert%20Committee%20on%20SMEs%20-%20The%20U%20K%20Sinha%20Committee%20constitutes%20by%20RBI.pdf 

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A video circulating on social media shows a man allegedly rolling out bhature on his stomach and then frying them in a pan. The clip is being shared with a communal narrative, with users making derogatory remarks while falsely linking the act to a particular community.

CyberPeace Foundation’s research found the viral claim to be false. Our probe confirms that the video is not real but has been created using artificial intelligence (AI) tools and is being shared online with a misleading and communal angle.

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Claim

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On January 5, 2025, several users shared the viral video on social media platform X (formerly Twitter). One such post carried a communal caption suggesting that the person shown in the video does not belong to a particular community and making offensive remarks about hygiene and food practices..

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• The post link and archived version can be viewed here: https://x.com/RightsForMuslim/status/2008035811804291381
• Archive Link: https://archive.ph/lKnX5 

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Fact Check:

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Upon closely examining the viral video, several visual inconsistencies and unnatural movements were observed, raising suspicion about its authenticity. These anomalies are commonly associated with AI-generated or digitally manipulated content.

To verify this, the video was analysed using the AI detection tool HIVE Moderation. According to the tool’s results, the video was found to be 97 percent AI-generated, strongly indicating that it was not recorded in real life but synthetically created.

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Conclusion

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CyberPeace Foundation’s research clearly establishes that the viral video is AI-generated and does not depict a real incident. The clip is being deliberately shared with a false and communal narrative to mislead users and spread misinformation on social media. Users are advised to exercise caution and verify content before sharing such sensational and divisive material online.

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