A study by researchers at the Indian Institute of Technology Madras (IIT Madras) has found that financial cybercrime does not necessarily target people with limited digital knowledge. Highly educated professionals, including IT employees, bankers, doctors, finance and management professionals and public-sector officers, can also become victims of online fraud.
The study examined 33 cybercrime victims in India and highlighted the psychological tactics used by fraudsters to influence decision-making.
Researchers found that scammers often approach victims during periods of vulnerability, such as family illness, retirement, job searches, financial difficulties or workplace pressure. By exploiting emotional, financial and reputational concerns, fraudsters can create a sense of urgency that affects a person's ability to assess a situation carefully.
The researchers describe this state as an “engineered brain freeze” or “mind arrest”, in which victims may struggle to make rational decisions despite having considerable digital awareness.
The study also identified tactics tailored to the Indian environment. These included threats involving Aadhaar, requests for UPI-based payments, fraudulent investment platforms falsely claiming SEBI registration and so-called digital arrest scams.
The findings suggest that digital literacy alone may not be sufficient protection against financial cybercrime. Understanding how scammers exploit stress, fear and urgency can also play an important role in preventing fraud.
The research highlights the need for greater awareness of both the technological and psychological methods used in increasingly sophisticated online scams.
