30. Net Extortion

Net Extortion (also called Cyber Extortion) is a form of cybercrime where an individual or group threatens to damage, steal, or expose sensitive digital information or disrupt services unless a ransom is paid. These threats are usually made through email, dark web channels, or encrypted messaging platforms.

It is a digital version of traditional extortion and is punishable under the Indian Penal Code (IPC) and the Information Technology Act, 2000.


Common Forms of Net Extortion

  • Ransomware Attacks
    Malicious software locks files or systems and demands payment (usually in cryptocurrency) to unlock them.
  • Data Breach Threats
    Hackers steal sensitive data (e.g., customer records, financial info) and threaten to publish it unless paid.
  • DDoS Threats (Distributed Denial of Service)
    Attackers threaten to crash a website or service unless a ransom is paid to prevent the attack.
  • Sextortion
    Threatening to release private or explicit images unless the victim pays or meets certain demands.
  • Corporate Blackmail
    Employees or competitors may use internal information to threaten a business for monetary gain.

How Net Extortion Happens

  1. System Compromise: Hackers infiltrate a network via malware, phishing, or vulnerabilities.
  2. Data Access/Theft: Sensitive data is accessed, encrypted, or stolen.
  3. Demand Message: The victim receives a threat demanding money or service in return for not publishing or destroying the data.
  4. Payment Request: Usually via anonymous cryptocurrency like Bitcoin.
  5. Action Taken: If the victim pays, the attacker may or may not fulfill the promise.

Legal Provisions in India

Under the Information Technology Act, 2000:

  • Section 66: Hacking and illegal access
  • Section 66C: Identity theft
  • Section 66D: Impersonation and cheating using computer resources
  • Section 43: Unauthorized access, data theft
  • Section 72: Breach of confidentiality and privacy

Under the Indian Penal Code (IPC):

  • Section 383-389: Criminal extortion
  • Section 506: Criminal intimidation
  • Section 503: Threat to cause injury to reputation or property

Real-Life Examples

  • WannaCry Ransomware (2017): Affected thousands of systems globally, demanding Bitcoin payments to decrypt data.
  • Targeted attacks on Indian SMEs: Several small businesses have faced ransomware attacks targeting their billing or customer databases.

Preventive Measures

  • Keep software and antivirus updated
  • Backup important data regularly
  • Avoid clicking unknown links or downloading suspicious files
  • Use strong, unique passwords and enable two-factor authentication
  • Train employees on cyber hygiene
  • Use secure firewalls and network monitoring tools

What to Do if You’re a Victim

  • Do not pay the ransom (unless advised legally, as payment does not guarantee recovery)
  • Disconnect infected systems from the internet
  • Report to Cyber Crime Portal: https://cybercrime.gov.in
  • File an FIR with the local police or cybercrime unit
  • Consult a cyber law expert or digital forensics professional

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