Basics
- APK files: Android Package Kit files, used to install apps on Android (like .exe files on Windows).
- Modus operandi:
- Victim gets a call/message claiming urgent action (blocked account, subsidy, electricity bill).
- Sent a link to download an app disguised as a govt./bank portal.
- App installs easily, mimics official branding.
- Once permissions are granted, the device is compromised → financial & personal data stolen.
How the Fraud Works
- Permissions requested: access to SMS, contacts, call logs, notifications, location, microphone.
- Functions after install:
- Monitors real-time activity.
- Intercepts OTPs and passwords.
- Closes fixed deposits, siphons funds.
- Mirrors & transmits data to fraudster servers in encrypted form.
- Techniques:
- Apps appear dormant during install to bypass antivirus checks.
- Minor modifications to logo/name/URL allow reuse after blacklisting.
Scale of the Problem
- Cybercrime surge: 900% rise between 2021–2025 (Parliament data).
- National Cyber Crime Portal (2025): 12,47,393 cases logged in 6 months.
- Telangana Cyber Security Bureau (Jan–Jul 2025):
- 2,188 APK fraud cases.
- ₹779.06 crore lost.
- 20–30 cases/day; daily loss = ₹10–15 lakh.
- High-value scams: up to ₹30–40 lakh each.
- Apps in circulation: Hundreds of cases linked to ~10 core APK files reused repeatedly.
Who Operates These Apps?
- Local ecosystem:
- 60–70% developed in India (Delhi-NCR, Meerut, UP, Jamtara, Jharkhand).
- International linkages:
- 30–40% traced to U.S., U.K., China.
- Distribution channels:
- Telegram channels, dark web marketplaces, pre-built APK kits sold for a fee.
- Organised underground economy: coders, distributors, mule account handlers.
How Victims Are Targeted
- Digital surveillance & data leaks:
- Fraudsters purchase leaked customer databases (from malls, hospitals, service portals).
- Data includes names, numbers, emails, addresses, income, profession.
- Target profile:
- High-earning professionals (doctors, bankers, teachers, real estate agents).
- Social engineering:
- Messages are customised, urgent, and exploit trust to force quick action.
Investigations & Challenges
- Cyber forensics:
- Only 20–30% of APKs successfully decrypted.
- Often reveal just server addresses, rarely developer signatures.
- Financial trails:
- Stolen funds funneled into mule accounts, quickly converted into cryptocurrency.
- Local accomplices sometimes arrested, masterminds remain elusive (esp. offshore).
- Tech interventions:
- Google removed ~50 malicious apps recently.
- But platforms don’t pre-scan all hosted apps; fraudsters use fake identities for hosting/publishing.
Comprehensive Analysis
- Structural Drivers:
- Widespread smartphone penetration + digital payments boom.
- Weak cyber hygiene & low awareness among users.
- Cheap dark web data sets fueling targeted scams.
- Systemic Gaps:
- Lack of strong pre-screening by app stores.
- Delays in forensic decryption and inter-agency coordination.
- International jurisdiction hurdles in catching masterminds.
- Economic & Social Impact:
- Daily financial hemorrhage of ₹10–15 lakh.
- Trust deficit in digital systems, affecting adoption of fintech/government platforms.
- Policy Imperatives:
- Stricter KYC norms for digital wallets and hosting accounts.
- Mandatory app vetting by intermediaries.
- Investment in cyber forensic capacity and cross-border cooperation.
- Public awareness campaigns on phishing & fake apps.
