Cyber Crime
The Dark Side of Online Gaming: Addiction, Money Laundering, Tax Evasion, and Compromised Results
The online gaming industry is rapidly gaining traction in India, with the country emerging as the largest mobile gaming market in terms of app downloads. Currently, there are over 450 million gamers in India, and this number is expected to reach 500 million by 2025. However, this growth comes with its dark sides. Many individuals have found themselves drowning in debt due to their gaming addiction. For instance, Suryaprakash, a police officer from Uttar Pradesh, is struggling to repay a debt of INR 1-1.5 million, asking his colleagues for INR 500 each.
There are numerous other cases highlighting the adverse effects of this addiction. In addition to this, cybercriminals are exploiting online gaming platforms to steal users’ identities and sensitive information, such as credit and debit card details. They also engage in cyberbullying and blackmailing, further aggravating the dangers of online gaming.
Case Study
According to a report published on the news channel’s website, a gang in Prayagraj lured young gamers with the promise of high returns with minimal investment. The outcome of the games was controlled by the gang, who rigged the results to make the players lose and drain their money. They advertised through social media handles and three websites to trap their victims.
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Risks Involved in Online Gaming
1. Cyberbullying: In online gaming, some players may use abusive language or threaten others, causing intimidation or harassment.
2. Virus or malware: Fraudsters often send links via email or text messages to download free games. These downloads can contain malware or viruses, allowing hackers to steal personal information.
3. Identity theft: Many games require users to provide personal information, such as their name and mobile number, which can be misused. In South Korea, over 1,000 gamers had their identities compromised in a popular game called *Lineage. Criminals used their names to create fake accounts without their knowledge.
4. Protection Racket: Organized crime has infiltrated the gaming community in some places. In South Korea, for instance, gangs have demanded virtual or real-life protection money from weaker players, threatening them with negative consequences if they fail to comply.
5. Credit Card Information Theft: Many games ask for credit card details to purchase points, coins, or to advance levels. Some apps misuse this information, allowing criminals to transfer money online.
6. Encouraging Criminal Behavior: Cybercriminals often pose as minors to gain the trust of young users. They provide game tips, share points, and build friendships. Once they obtain the user’s private information, they can manipulate or blackmail them into committing illegal acts.
7. Health Risks: Excessive gaming can have negative health impacts, including eye strain, stress, and pain in the head, neck, and back. It can also lead to behavioral changes such as aggression or depression, and in extreme cases, suicidal thoughts.
8. Tax Evasion and Money Laundering: Many online gaming platforms are used as a front for illegal activities such as tax evasion and money laundering. Criminals often exploit the anonymity provided by online games to transfer large sums of money across borders, bypassing financial regulations. These illicit funds are funneled through fake accounts, virtual currencies, or illegal transactions, making it difficult for authorities to trace and control the flow of money.
Prevention and Protection Tips
- Download apps only from authorized sources, such as the Google Play Store or Apple Store.
- Always verify the legitimacy of the publisher before downloading any gaming app.
- Avoid sharing personal information online, as cybercriminals can misuse it.
- Be wary of in-app purchases or attractive subscription offers.
- Never click on suspicious links received via email or text messages.
- Cover your webcam when not in use and avoid using it when chatting with strangers.
- Do not share your credit or debit card details with anyone.
- Install reliable antivirus software on your computer or smartphone and update it regularly.
- Use complex passwords for your online gaming and other accounts, and change them periodically.
- Avoid meeting unknown people during online gaming sessions.
- If you encounter any problems, inform your parents or guardians.
Action Taken
On January 24, 2024, ANI reported that the Home Ministry’s cyber wing issued a warning to gamers to remain cautious due to the rise in fraudulent activities through gaming apps. By December 15, 2023, the government had blocked 581 apps, of which 174 were related to betting and gambling. Popular apps like PUBG and Garena Free Fire were among them. Betting platforms were depositing UPI payments into fake bank accounts, and the collected funds were being laundered through hawala, cryptocurrency, and other illegal means. Some banned apps included Parimatch, Fairplay, 1XBET, Lotus365, Dafabet, and Betwaysatta.
How to Report a Cyber Crime
If you become a victim of online gaming fraud, you can report it to the cybercrime helpline number 1930 or file a complaint at cybercrime.gov.in. You can also visit your nearest cyber cell to lodge a complaint.
Expert Opinion
Former IPS officer and cyber expert Dr. Triveni Singh mentioned that scammers lure young players with the promise of rewards and then siphon off their money through money laundering. They entice users by initially showing them winnings, but once they start investing large amounts, the game is rigged against them. In some cases, fraudsters even ask for the gamers’ credit card details. Many young gamers, after falling into this trap, use their parents’ credit cards without their knowledge, only for the parents to discover the fraud too late.