E-Commerce Fraud Offences
What is E-Commerce Fraud?
E-commerce fraud refers to fraudulent activities carried out through electronic commerce platforms, involving deception, misrepresentation, or theft via online transactions. It can include:
Identity theft,
Fake or counterfeit goods,
Non-delivery of goods or services,
Payment fraud,
Phishing and hacking,
Online auction fraud,
Unauthorized use of credit cards.
Legal Provisions Addressing E-Commerce Fraud in India
Information Technology Act, 2000 (IT Act):
Addresses computer-related offences such as hacking (Section 66), identity theft (Section 66C), phishing, and electronic fraud (Section 66D).
Indian Penal Code (IPC):
Provisions like Section 420 (cheating), Section 406 (criminal breach of trust), Section 403 (dishonest misappropriation), and Section 379 (theft) apply to e-commerce frauds.
Consumer Protection Act, 2019:
Protects consumers against unfair trade practices including online frauds.
Common Types of E-Commerce Fraud Offences
Phishing & Identity Theft: Fraudsters steal personal information to access accounts or conduct unauthorized transactions.
Non-Delivery Fraud: Sellers accept payment but fail to deliver goods or services.
Payment Fraud: Using fake or stolen credit card details to make purchases.
Fake Websites/Apps: Creating fraudulent platforms mimicking legitimate ones.
Return & Refund Fraud: Abusing return policies.
Key Case Laws on E-Commerce Fraud Offences
1. State of Tamil Nadu v. Suhas Katti, AIR 2004 SC 3546
Facts:
Suhas Katti sent obscene messages to a woman via internet and created fake profiles defaming her.
Issue:
Whether the IT Act can be invoked for defamation and online harassment.
Held:
The Supreme Court held that offences committed via electronic means fall under the IT Act and related IPC sections. The accused was convicted for defamation, sending offensive messages, and cheating.
Significance:
First landmark case establishing liability for online fraud and misuse, reinforcing IT Act applicability.
2. Shreya Singhal v. Union of India, (2015) 5 SCC 1
Facts:
Challenged Section 66A of the IT Act, which criminalized offensive messages via electronic communication.
Issue:
Validity of IT Act provisions and their impact on freedom of speech and expression.
Held:
The Supreme Court struck down Section 66A but upheld other IT Act provisions relating to cybercrime including fraud.
Significance:
Clarified scope of IT Act offences ensuring protection against cyber fraud without violating free speech.
3. Anvar P.V. v. P.K. Basheer (2014) 10 SCC 473
Facts:
Dispute over admissibility of electronic evidence in fraud case.
Issue:
Whether electronic evidence without proper certification is admissible.
Held:
The Court held that electronic evidence must comply with Section 65B of the Evidence Act to be admissible, crucial in proving e-commerce frauds.
Significance:
Strengthened the evidentiary framework needed for prosecuting e-commerce fraud.
4. State of Kerala v. Raneef, 2020 SCC Online Ker 2808
Facts:
Accused created fake e-commerce websites, collected payments, but did not deliver goods.
Issue:
Whether such conduct amounts to cheating under IPC and IT Act.
Held:
The Kerala High Court convicted the accused under Section 420 IPC and Sections 66 and 66D of the IT Act for cheating and identity fraud.
Significance:
Confirmed that fraudulent online sales constitute criminal offences under multiple statutes.
5. Omprakash Sharma v. State, 2018 SCC Online Del 890
Facts:
Accused hacked into victim’s e-wallet and stole money.
Issue:
Whether hacking and unauthorized access to digital wallets amounts to cyber theft.
Held:
Delhi High Court convicted accused under Section 66 of the IT Act and Section 379 IPC.
Significance:
Reaffirmed legal protection against hacking and theft in e-commerce platforms.
6. State of Maharashtra v. Ramesh More (2016)
Facts:
Accused sold counterfeit mobile phones via e-commerce websites.
Issue:
Whether selling counterfeit goods online amounts to fraud and cheating.
Held:
Court convicted accused under Sections 420 and 468 IPC along with IT Act provisions.
Significance:
Expanded fraud provisions to online sale of counterfeit goods.
Summary of Legal Position
IT Act and IPC complement each other in prosecuting e-commerce fraud.
Electronic evidence standards (Section 65B Evidence Act) are crucial for convictions.
Courts treat fake online profiles, websites, hacking, and non-delivery as criminal offences.
Consumer rights are protected under Consumer Protection Act for unfair online trade practices.
Judicial pronouncements are increasingly supporting strong action against e-commerce fraud.
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