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Cyber Crimes and Penalties

With the widespread use of digital technology in business and daily life, cybercrimes have emerged as a major threat. The Information Technology Act, 2000 was introduced to address offences involving computers, networks, and electronic data. This article explains the types of cyber crimes recognized under Indian law and the associated penalties.

Unit 9: Legal Aspects of Business


Meaning of Cyber Crime

Cyber crime refers to any criminal activity involving computers, networks, or digital devices. These crimes can target individuals, businesses, or governments and can involve data theft, unauthorized access, fraud, defamation, and more.

Example: If someone hacks into a company’s system and steals customer data, it is a cybercrime.

Classification of Cyber Crimes under IT Act, 2000

The Act categorizes cyber crimes into two main types:

  1. Civil wrongs – Usually involve financial compensation (e.g., data theft).

  2. Criminal offences – Punishable with imprisonment and/or fines (e.g., hacking, identity theft).


Common Types of Cyber Crimes and Penalties

Below are the major cyber crimes covered under the Act:

a. Hacking (Section 66)

  • Definition: Unauthorized access to or tampering with a computer system or data.

  • Penalty: Imprisonment up to 3 years and/or fine up to ₹5 lakh.

Example: Deleting or altering files in a system without permission.


b. Data Theft (Section 43)

  • Definition: Accessing, downloading, or copying data without the consent of the data owner.

  • Penalty: Compensation to the affected party (civil liability).

Example: Downloading confidential business reports from a competitor’s system.


c. Identity Theft (Section 66C)

  • Definition: Fraudulent use of another person’s personal data (e.g., passwords, digital signatures).

  • Penalty: Imprisonment up to 3 years and/or fine up to ₹1 lakh.

Example: Using someone else’s Aadhaar details to open a bank account.


d. Cheating by Personation (Section 66D)

  • Definition: Deceiving someone by pretending to be another person via electronic means.

  • Penalty: Imprisonment up to 3 years and/or fine up to ₹1 lakh.

Example: Sending a fake email impersonating a bank to steal login details (phishing).


e. Cyber Stalking (Section 66E)

  • Definition: Repeatedly following, contacting, or harassing someone using electronic communication.

  • Penalty: Imprisonment up to 3 years and/or fine up to ₹2 lakh.


f. Cyber Terrorism (Section 66F)

  • Definition: Using computer resources to threaten the unity, integrity, or security of India.

  • Penalty: Life imprisonment.

Example: Hacking into a government defense system with malicious intent.


g. Sending Offensive Messages (Section 66A) [Struck Down]

  • Originally punished for sending offensive messages through communication services, but this section was declared unconstitutional by the Supreme Court in 2015 (Shreya Singhal v. Union of India).


h. Publishing Obscene Material (Section 67)

  • Definition: Publishing or transmitting obscene or sexually explicit content in electronic form.

  • Penalty:

    • First conviction: Up to 3 years and fine up to ₹5 lakh

    • Subsequent: Up to 5 years and fine up to ₹10 lakh

Example: Uploading pornographic videos on a public website.


i. Child Pornography (Section 67B)

  • Definition: Publishing or browsing content that exploits children in sexually explicit acts.

  • Penalty: Up to 5 years for the first offence, and up to 7 years for repeat offences.


j. Tampering with Computer Source Documents (Section 65)

  • Definition: Intentional alteration or destruction of source code required to be maintained by law.

  • Penalty: Up to 3 years imprisonment and/or fine up to ₹2 lakh.


Adjudication and Legal Recourse

1. Adjudicating Officer

  • Appointed to settle disputes involving damages up to ₹5 crore.

  • Has powers similar to a civil court.

2. Cyber Appellate Tribunal

  • Handles appeals against decisions of Adjudicating Officers.

  • Final appeal lies with the High Court.


Responsibilities of Intermediaries (Section 79)

  • Intermediaries (e.g., social media platforms, ISPs) are exempt from liability if:

    • They act only as facilitators.

    • They take prompt action to remove offensive content upon notice.

This is known as the "safe harbour" protection.


Example

Case: Avnish Bajaj v. State (Bazee.com case)

  • A CD containing obscene content was sold on a website.

  • Though the CEO did not upload it himself, he was held liable under Section 67.

  • This case highlighted the liability of intermediaries before Section 79 was amended.


Quick Review

SectionOffenceDescriptionPenalty
Sec 43Damage to computer system or networkUnauthorized access, downloading, copying, introducing viruses, causing damage to data or systemsCompensation to the affected person (civil liability)
Sec 43AFailure to protect sensitive dataNegligence by a body corporate in protecting personal/sensitive dataCompensation to the affected person if wrongful loss/damage occurs
Sec 65Tampering with computer source documentsAltering, concealing, or destroying legally required source code or programsImprisonment up to 3 years, or fine up to ₹2 lakh, or both
Sec 66Computer-related offencesDishonestly or fraudulently committing any act under Section 43Imprisonment up to 3 years, or fine up to ₹5 lakh, or both
Sec 66ASending offensive messages (Struck down)Sending offensive, false, or menacing messages electronicallyStruck down by Supreme Court in 2015 (Shreya Singhal v. Union of India)
Sec 66BDishonest receiving of stolen computer resourceKnowingly receiving stolen computer data or devicesImprisonment up to 3 years, or fine up to ₹1 lakh, or both
Sec 66CIdentity theftUsing another person’s password, digital signature, or unique ID fraudulentlyImprisonment up to 3 years, or fine up to ₹1 lakh, or both
Sec 66DCheating by personation using computerImpersonating someone else electronically to cheat (e.g., phishing, fake emails)Imprisonment up to 3 years, or fine up to ₹1 lakh, or both
Sec 66EViolation of privacyCapturing, publishing, or transmitting images of private areas without consentImprisonment up to 3 years, or fine up to ₹2 lakh, or both
Sec 66FCyber terrorismActs intended to threaten national security, integrity, sovereignty, or cause death/injury using ITImprisonment for life

Notes for Exam Preparation

  • Sections 43 & 43A deal mainly with civil liability (compensation).

  • From Section 65 onwards, the offences become criminal with imprisonment and fines.

  • Section 66A has been struck down — do not quote as valid law, but remember the case name: Shreya Singhal v. Union of India (2015).

  • Section 66F is the most serious offence under the Act, relating to cyber terrorism.

  • Be clear on the difference between identity theft (66C) and cheating by impersonation (66D).

  • Most penalties involve up to 3 years of imprisonment and/or monetary fines.


Conclusion

The Information Technology Act, 2000 lays down a comprehensive legal framework to combat cyber crimes in India. With evolving technology, the nature of crimes has become more complex, making it crucial for businesses and individuals to understand legal protections and responsibilities. For UGC NET Commerce students, knowledge of cyber crime laws and their enforcement is important for understanding the legal environment of modern digital commerce.


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