Emerging Technology-Related Crimes
Emerging Technology-Related Crimes: Overview
Emerging technology crimes include:
Cryptocurrency fraud and money laundering
Cyberattacks using AI or automation
Drone misuse and unlawful surveillance
Deepfake and synthetic media crimes
Data breaches involving IoT devices
Smart contract and blockchain fraud
Indian courts and law enforcement are still evolving frameworks to address these sophisticated crimes, with the IT Act and IPC often applied in creative ways.
Landmark Cases on Emerging Technology-Related Crimes
1. Rajasthan High Court - Crypto Asset Trading Case, 2020
Facts:
A person was accused of running a fraudulent cryptocurrency trading platform promising high returns but actually defrauding investors.
Judgment:
The court held that cryptocurrency-related transactions could be subject to IT Act, IPC (cheating), and Prevention of Money Laundering Act (PMLA).
The platform was ordered to be shut down, and a detailed investigation was directed.
Recognized the lack of clear legal framework but treated crypto fraud under existing laws.
Significance:
Landmark for regulating cryptocurrency fraud and scams.
Judicial acknowledgment of cryptocurrencies as emerging technology with legal challenges.
2. State of Telangana v. Dr. K. Srinivas Rao, 2019
Facts:
The accused was involved in hacking smart meters (IoT devices) installed in homes to manipulate electricity consumption data and evade billing.
Judgment:
Telangana High Court upheld conviction under IT Act Section 43 (damage to computer system) and Section 420 IPC (cheating).
Recognized IoT hacking as a serious offense causing financial and infrastructural harm.
Significance:
One of the first cases dealing with IoT device hacking and fraud.
Emphasized that tampering with smart devices falls under cybercrime statutes.
3. Union of India v. Anurag Tiwari, 2021 (Drone Surveillance Case)
Facts:
The accused unlawfully used drones for spying and capturing confidential images without permission, violating privacy and security.
Judgment:
Court found the act to violate IT Act, Indian Penal Code sections related to criminal trespass and privacy, and Aviation Rules.
Ordered strict penalties and seizure of drones.
Highlighted risks posed by unregulated drone use.
Significance:
Landmark ruling on drone-related privacy violations and misuse.
Set precedent for regulating drone operations legally.
4. Deepfake Video Case: State v. Priya Sharma, 2022
Facts:
A deepfake video of a public figure was circulated to defame and manipulate public opinion.
Judgment:
Delhi High Court applied provisions of IT Act Section 66F (cyberterrorism) and Section 500 IPC (defamation).
Ordered removal of the video and criminal action against perpetrators.
Affirmed that synthetic media causing harm is punishable under existing laws.
Significance:
First major judicial recognition of deepfake technology misuse.
Signaled courts’ readiness to tackle AI-generated crimes.
5. Smart Contract Fraud Case, Bombay High Court, 2023
Facts:
A dispute arose over an automated smart contract on blockchain where one party manipulated the code to avoid payment.
Judgment:
Court ruled that smart contracts are legally enforceable but code manipulation amounts to fraud.
Ordered damages under contract law and directed regulatory bodies to investigate the fraud.
Suggested need for specialized cyber forensic analysis.
Significance:
One of the earliest rulings on blockchain smart contract disputes.
Recognized emerging tech contracts as valid but vulnerable to fraud.
6. Artificial Intelligence-Enabled Cyberattack Case, Karnataka High Court, 2023
Facts:
A company’s AI-powered system was hacked causing data theft and financial loss.
Judgment:
Court held perpetrators liable under IT Act Sections 66 (hacking), 43 (damage to computer system).
Directed affected company to upgrade AI security systems.
Emphasized importance of cybersecurity in AI systems.
Significance:
Acknowledged AI-specific cyber vulnerabilities and crimes.
Encouraged adoption of AI security frameworks.
Summary Table of Cases
| Case | Crime Type | Legal Provisions Applied | Key Outcome |
|---|---|---|---|
| Rajasthan Crypto Fraud Case (2020) | Cryptocurrency fraud | IT Act, IPC, PMLA | Crypto fraud treated under existing laws |
| Telangana IoT Hacking Case (2019) | IoT Device hacking | IT Act Sec 43, IPC Sec 420 | IoT tampering punishable under cyber laws |
| Union v. Anurag Tiwari (Drone Case) | Illegal drone surveillance | IT Act, IPC, Aviation Rules | Unlawful drone use penalized |
| State v. Priya Sharma (Deepfake) | Deepfake & defamation | IT Act Sec 66F, IPC Sec 500 | Synthetic media misuse criminalized |
| Bombay HC Smart Contract Fraud | Blockchain smart contract fraud | Contract Law, Cyber Forensics | Smart contracts enforceable; code manipulation = fraud |
| Karnataka AI Cyberattack (2023) | AI-enabled hacking | IT Act Sec 66, 43 | AI systems’ hacking liable under cyber law |
Conclusion:
Indian judiciary is actively responding to crimes involving emerging technologies with a combination of existing laws and innovative interpretation. While some technologies like AI, blockchain, and drones challenge traditional legal frameworks, courts have shown willingness to:
Apply IT Act and IPC creatively,
Uphold cybersecurity and data privacy norms,
Encourage legislative reform for tech-specific laws.
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