Transnational Cybercrime & Money Laundering
Science & Technology
- PYQs8
- Articles1
Background
This concept addresses a critical internal security threat, challenges to economic stability (financial crime), governance issues, the impact of emerging technologies on crime, and the imperative for international cooperation in combating global criminal networks.
Transnational cybercrime refers to criminal activities conducted across national borders using computer networks and the internet, often involving sophisticated online fraud. Money laundering is the process of concealing the origins of illegally obtained money, typically by passing it through a complex sequence of banking transfers or commercial transactions, to make it appear legitimate.
Facts & tables
- Global Hubs
- Southeast Asia is a major hub for online fraud operations, generating tens of billions of dollars annually.
- Exploited Vulnerabilities
- Criminal networks exploit low regulatory oversight in Special Economic Zones (SEZs) and complex corporate structures (e.g., shell companies).
- Money Laundering Methods
- Proceeds are laundered through mule accounts, hawala networks, and cryptocurrencies.
- Technological Advancement
- Increasing adoption of Artificial Intelligence (AI) via chatbots, deepfakes, and voice-cloning enhances scam sophistication.
| Type | Reference |
|---|---|
| Conceptual area | Cyber Security |
| Conceptual area | Financial Crime |
| Conceptual area | International Security |
| Body | Role |
|---|---|
| Asia/Pacific Group (APG) | Monitors and reports on money laundering and terrorist financing trends |
| United Nations Office on Drugs and Crime (UNODC) | Co-led study on cyber scam hubs, provides expertise on transnational crime |
Prelims angle
Prelims angle: Multi-statement analysis
Prelims angle: Factual recall
- SE Asia a major hub for online fraud.
- Exploits weak regulatory oversight, especially in SEZs.
- Uses shell companies, mule accounts, hawala, crypto for laundering.
- AI (deepfakes, chatbots) increasing scam sophistication.
- Requires enhanced regional cooperation and AML/CFT frameworks.
| Year | Framing tags |
|---|---|
| 2026 | Multi-statement analysis, Conceptual understanding |
| 2026 | Multi-statement analysis, Factual recall |
| 2026 | Statement-based questions, Factual recall |
| 2025 | Statement-based questions, Factual recall |
| 2025 | Statement-based questions, Factual recall |
| 2025 | Statement-based questions, Factual recall |
| 2017 | Factual recall, Multi-statement analysis |
| 2017 | Statement-based questions, Policy measures |
Timeline
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Cyber Security
Conceptual area
-
Financial Crime
Conceptual area
-
International Security
Conceptual area
-
Prelims 2017
Factual recall, Multi-statement analysis
-
Prelims 2017
Statement-based questions, Policy measures
-
Prelims 2025
Statement-based questions, Factual recall
-
Prelims 2025
Statement-based questions, Factual recall
-
Prelims 2025
Statement-based questions, Factual recall
-
Prelims 2026
Multi-statement analysis, Conceptual understanding
-
Prelims 2026
Multi-statement analysis, Factual recall
-
Prelims 2026
Statement-based questions, Factual recall
-
Cyber scam hubs across Southeast Asia fuelled by human trafficking: APG report
Transnational cybercrime involves sophisticated online fraud operations, often based in regions with weak oversight, using advanced technologies like AI, and laundering illicit proceeds through complex financial channels, posing a significant global security and economic challenge.
See also
Past papers
2017–2026 · 8 questions
In the news
Cyber scam hubs across Southeast Asia fuelled by human trafficking: APG report
Transnational cybercrime involves sophisticated online fraud operations, often based in regions with weak oversight, using advanced technologies like AI, and laundering illicit proceeds through complex financial channels, posing a significant global security and economic challenge.
Try these PYQs
Which of the following statements with regard to the National Quantum Mission (NQM) is/are correct?
1. It aims at developing intermediate-scale quantum computers with 50-1000 physical qubits.
2. Its implementation includes setting up of four Thematic Hubs (T-Hubs) in academic and national R&D institutes across India.
Select the answer using the code given below:
Statement 1 is Correct: The National Quantum Mission (NQM) aims to develop intermediate-scale quantum computers with 50 to 1000 physical qubits within 8 years. Specifically, it targets 50–100 physical qubits in 5 years and scales up to 50–1000 physical qubits in 8 years using platforms like superconducting and photonic technology. Statement 2 is Correct: The implementation of the mission explicitly includes the establishment of four Thematic Hubs (T-Hubs) in top academic and national R&D institutes across India. These hubs focus on distinct technology verticals: Quantum Computing (led by IISc Bengaluru), Quantum Communication (led by IIT Madras), Quantum Sensing & Metrology (led by IIT Bombay), and Quantum Materials & Devices (led by IIT Delhi). Therefore, both statements are correct.
GPS-Aided Geo Augmented Navigation (GAGAN) uses a system of ground stations to provide necessary augmentation. Which of the following statements is/are correct in respect of GAGAN?
I. It is designed to provide additional accuracy and integrity.
II. It will allow more uniform and high quality air traffic management.
III. It will provide benefits only in aviation but not in other modes of transportation.
Select the correct answer using the code given below.
✅ Statement I: Correct
*GAGAN is an Indian SBAS developed by ISRO and AAI to enhance GPS accuracy and integrity, crucial for aviation safety.* ✅ Statement II: Correct
*It improves GPS reliability and accuracy, enabling better air traffic management and safer, efficient navigation.* ❌ Statement III: Incorrect
*GAGAN’s benefits extend beyond aviation to railways, roadways, maritime, agriculture, and disaster management.* Correct Answer: Only Statements I and II are correct.
Consider the following statements with reference to the Sagarmala Programme of the Government of India :
I. The Sagarmala Programme seeks to achieve port-led economic growth through cost-effective and sustainable coastal infrastructure.
II. The success of the Sagarmala Programme is reflected in significant growth in coastal and inland waterway shipping, along with improved global port rankings.
III. Sagarmala 2.0 aims to position India as a global maritime innovation hub aligned with Atmanirbhar Bharat and Viksit Bharat 2047 visions.
Which of the following relationships among the above statements is/are correct ?
1. Statement II validates the effectiveness of the strategies envisioned in statement I.
2. Statement III extends the objectives of statement I by embedding them into a future-oriented innovation framework.
3. Statement I contradicts statement III by focusing only on traditional infrastructure instead of modern innovation.
Select the answer using the code given below :
Relationship 1 is Correct: Statement I outlines the core objective of the Sagarmala Programme, launched in 2015, which is port-led economic development through cost-effective and sustainable coastal infrastructure. Statement II provides empirical evidence of its success, such as the 118% growth in coastal shipping, a 700% surge in inland waterway cargo movement, and improved global port rankings (with nine Indian ports now in the global top 100). Thus, the tangible achievements in Statement II directly validate the effectiveness of the foundational strategies mentioned in Statement I. Relationship 2 is Correct: Statement III highlights the goals of Sagarmala 2.0, which focuses on smart ports, green shipping, and positioning India as a global maritime innovation hub aligned with the Viksit Bharat 2047 and Atmanirbhar Bharat visions. This acts as an evolutionary extension of the foundational infrastructure goals in Statement I, embedding them into a broader, future-oriented innovation framework rather than replacing them. Relationship 3 is Incorrect: Statement I does not contradict Statement III. The initial focus on traditional and sustainable coastal infrastructure in the original Sagarmala Programme serves as the necessary physical base upon which the modern innovation and technology-driven goals of Sagarmala 2.0 are built. The two phases are complementary and represent a progressive policy evolution, not a contradiction. Therefore, relationships 1 and 2 are correct, making Option B the correct choice.
Consider the following statements:
I. It is expected that Majorana 1 chip will enable quantum computing.
II. Majorana 1 chip has been introduced by Amazon Web Services (AWS).
III. Deep learning is a subset of machine learning.
Which of the statements given above are correct?
Majorana 1 chip is linked to quantum computing and deep learning is part of machine learning, but AWS did not introduce the Majorana 1 chip. * ✅ I. Majorana 1 chip – Expected to advance quantum computing. * ❌ II. AWS introducing Majorana 1 – Incorrect, it’s a Microsoft project. * ✅III. Deep learning – A subset of machine learning. Only statements I and III are correct.
Which of the following statements is/are correct regarding Smart India Hackathon 2017?
1. It is a centrally sponsored scheme for developing every city of our country into Smart Cities in a decade.
2. It is an initiative to identify new digital technology innovations for solving the many problems faced by our country.
3. It is a programme aimed at making all the financial transactions in our country completely digital in a decade.
Select the correct answer using the code given below :
Statement 1 is incorrect: The Smart India Hackathon (SIH) is not a scheme for developing Smart Cities. Instead, it is a nationwide initiative aimed at identifying innovative digital technology solutions to solve real-world challenges across various sectors. Statement 2 is correct: The Government of India launched the Smart India Hackathon to encourage students and professionals to develop innovative digital solutions for challenges in agriculture, health, education, energy, environment, and other domains. It serves as a platform for young minds to engage in problem-solving and contribute to technological advancements. Statement 3 is incorrect: While the hackathon focuses on digital technology innovations, it is not specifically centered on digital financial transactions. Instead, it covers a wide range of sectors where technology can drive efficiency and innovation. Hence, correct answer is option (B).
Show 3 more PYQs
In India, it is legally mandatory for which of the following to report on cybersecurity incidents?
1. Service providers
2. Data centres
3. Body corporate
Select the correct answer using the code given below:
In India, section 70-B of the Information Technology Act, 2000 (the IT Act) gives the Central Government the power to appoint an agency of the government to be called the Indian Computer Emergency Response Team. Further, it is legally mandatory for service providers, data centres and body corporates to report on cybersecurity incidents as outlined in the Information Technology (The Indian Computer Emergency Response Team and Manner of Performing Functions and Duties) Rules, 2013, which were notified under the Information Technology Act, 2000.
Consider the following statements with respect to the AI Impact Summit, 2026 held in New Delhi :
1. The Summit's intellectual framework was based on three foundational Sutras : People, Planning, and Progress.
2. The Preamble of the Summit stresses Democratising AI Resources, which acknowledges the Charter for Democratic Diffusion of AI as a binding framework to support locally relevant innovation and strengthen resilient AI ecosystems while respecting national laws.
3. The New Delhi Declaration on AI Impact was structured around seven Chakras (Pillars), which included Access for Social Empowerment, AI for Science, and Secure and Trusted AI.
Which of the statements given above is/are correct ?
Statement 1 is Incorrect: The Summit's intellectual framework and core philosophy were anchored in three foundational principles (Sutras): People, Planet, and Progress, not People, Planning, and Progress. Statement 2 is Incorrect: The New Delhi Declaration introduced the Charter for Democratic Diffusion of AI to promote affordable access to foundational AI resources, support local innovation, and build resilient AI ecosystems. However, it was established as a voluntary and non-binding framework, respecting national laws, rather than a binding treaty. Statement 3 is Correct: The New Delhi Declaration on AI Impact was structured around seven thematic pillars of action, officially referred to as Chakras. These foundational areas included Access for Social Empowerment, AI for Science, and Secure and Trusted AI, alongside Democratizing AI Resources, Economic Growth & Social Good, Human Capital Development, and Resilient, Efficient & Innovative AI Systems. Therefore, option D is the correct answer.
Consider the following statements regarding AI Action Summit held in Grand Palais, Paris in February 2025:
I. Co-chaired with India, the event builds on the advances made at the Bletchley Park Summit held in 2023 and the Seoul Summit held in 2024.
II. Along with other countries, US and UK also signed the declaration on inclusive and sustainable AI.
Which of the statements given above is/are correct?
✅ Statement I: Correct
*India co-chaired the AI Action Summit in Paris (Feb 2025), continuing efforts from the Bletchley Park (UK, 2023) and Seoul (South Korea, 2024) Summits on AI governance.* ❌ Statement II: Incorrect
*The joint statement on ‘Inclusive and Sustainable AI’ was signed by 58 countries including India and China, but the US and UK did not sign due to concerns about overregulation.* Correct Answer: Only Statement I is correct.