Rise in Data Theft Cases Has Mumbai Cyber Police on High Alert
Mumbai has seen a significant increase in data theft incidents, with 67 cases reported by various companies against their employees from 2021 to May 2024. These incidents often involve the theft of confidential client databases and company data for person
Data TheftCyber CrimeMumbaiReal EstateLogistics CompanyReal Estate MumbaiOct 13, 2024
One recent case involved a Mumbai-based logistics company that suffered financial losses after an employee allegedly hacked into their GST account and email ID. The breach prevented the company from paying tax returns on time and caused them to miss out on business opportunities. The owner filed a complaint with the Vakola police, claiming that the accused had forged his signature on the company’s letterhead to alter banking details.
In another incident, the Bandra police registered an FIR against three former employees of a real estate service company who abruptly resigned in May. These employees allegedly hacked into the company’s system and stole valuable client data worth over Rs 80 lakh, causing significant damage to the firm and leading to the loss of clients.
Furthermore, in February, a case was registered with the NM Joshi Marg police regarding the alleged unauthorized access and deletion of ‘confidential data’ from the systems of textile major Welspun Living Limited. The incident occurred on January 17, and the breach was discovered the following day by the firm’s assistant general manager of IT. The compromised data included the company’s dashboard and daily operation reports.
A senior IPS officer explained that data theft involves stealing digital information to obtain confidential information or compromise privacy. 'If data thieves steal enough information, they can use it to gain access to secure accounts, clientele details, set up credit cards using the victim’s name, or even use the victim’s identity to benefit themselves,' the officer said. Civil suits and various provisions of the IT Act can be used against the culprits, depending on the nature of the theft.
Cyber expert Ritesh Bhatia pointed out that data theft by employees is often driven by financial gain, competitive advantage, or malicious intent. Many employees wrongly believe they own the data they create and may start their own companies using the stolen information. Bhatia also revealed that hackers are now directly approaching employees, offering commissions of up to 20 percent for allowing their company’s infrastructure to be hacked. He added that not all data theft cases result in FIRs, as many companies prefer out-of-court settlements or discreet resolutions to avoid reputational damage and legal battles.
Cyber lawyer Dr Prashant Mali emphasized that data is the soul of all businesses. 'Right data from the right data source makes or breaks an organisation. Good organisations with a good market standing always go for FIRs, while shady ones or those working with stolen data avoid criminal cases. Filing an FIR for an organisation is important as it serves as a deterrent, discouraging other staff or potential thieves,' said Dr Mali.
Frequently Asked Questions
What is data theft?
Data theft, also known as data breaching, involves stealing digital information to obtain confidential details, compromise privacy, or gain unauthorized access to secure accounts, clientele details, and more.
How many data theft cases have been reported in Mumbai from 2021 to May 2024?
From 2021 to May 2024, 67 data theft cases have been reported in Mumbai, mostly involving employees of various companies.
What are the common types of data stolen in these incidents?
Common types of data stolen include personal details, financial information, trade secrets, and proprietary software.
Can civil suits be filed in data theft cases?
Yes, civil suits and various provisions of the IT Act can be used against data thieves, depending on the nature of the theft.
Why do some companies avoid filing FIRs in data theft cases?
Some companies prefer out-of-court settlements or discreet resolutions to avoid reputational damage and legal battles.
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