The Dark Side of Internet Gaming: Addiction, Money Laundering, Tax Avoidance, and Wasteful Outcomes.

The online gaming industry is growing rapidly in India, and the country continues to be the largest mobile gaming market in terms of app downloads. Currently, there are more than 450 million gamers in India, and this number is expected to reach 500 million by 2025. However, this growth comes with its dark side. Many people find themselves in debt because of their addiction to sports. For example, Suryaprakash, a police officer from Uttar Pradesh, is struggling to pay off a debt of INR 1-1.5 million, asking his colleagues for INR 500 each.

There are many other cases that highlight the negative effects of this addiction. In addition to this, cybercriminals use online game banners to steal user information and sensitive information, such as credit and debit card details. They are also involved in cyberbullying and money laundering, which exacerbates the dangers of online gaming.

A case study
According to a report published on a news channel’s website, the Prayagraj gang lured small players with the promise of high profits with minimal investment. The results of the games were controlled by a gang, who manipulated the results to make the players lose and waste their money. They advertised through social media posts and three websites to trap their victims.

Also READ: Join the Society: Registration Opened for ‘Cyber ​​Safe Uttar Pradesh’ Event by FCRF on October 17

Risks Involved in Online Gaming

1. Cyberbullying: In online games, some players may use abusive language or threaten others, causing threats or harassment.

2. Virus or malware: Scammers often send links via email or text messages to download free games. These apps may contain malware or viruses, which allow hackers to steal your information.

3. Identity theft: Many games require users to provide personal information, such as their name and phone number, which can be misused. In South Korea, more than 1,000 players lost their identity in a popular game called *Lineage. Criminals used their names to create fake accounts without their knowledge.

4. Security Racket: Organized crime has infiltrated the sports community elsewhere. For example, in South Korea, gangs have been demanding real or virtual protection money from weak players, threatening them with dire consequences if they fail to comply.

5. Credit Card Information Theft: Many games ask for credit card information to buy points, coins, or level up. Some apps misuse this information, allowing criminals to transfer money online.

6. Encouraging Criminal Behavior: Cybercriminals often pose as children to gain the trust of new users. They give game tips, share information, and build friendships. Once they have access to a user’s private information, they can spoof or trick them into doing illegal activities.

7. Health Risks: Excessive exercise can have negative health effects, including eye strain, depression and headaches, neck and back pain. It can also lead to behavioral changes such as aggression or depression, and in extreme cases, suicidal thoughts.

8. Tax Evasion and Money Laundering: Many online gaming platforms are used as a front for illegal activities such as tax evasion and money laundering. Criminals often use the anonymity offered by Internet games to transfer large amounts of money across borders, violating financial laws. These illegal funds are spent through fake accounts, real funds, or illegal transactions, making it difficult for authorities to monitor and control the flow of money.

Also READ: The Future of Crime Summit: The Largest Conference on Cyber ​​Crimes​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​ needs has been returned on 13-14 March 2025, in New Delhi.

Prevention and Protection Tips

• Download apps only from authorized sources, such as the Google Play Store or the Apple Store.
• Always verify the authenticity of the publisher before downloading any game software.
• Avoid sharing your personal information online, as cybercriminals can misuse it.
• Be aware of in-app purchases or attractive subscription rates.
• Never click on suspicious links received in email or text messages.
• Cover your webcam when not in use and avoid using it when chatting with strangers.
• Do not share credit or debit card information with anyone.
• Install reliable antivirus software on your computer or smartphone and update it regularly.
• Use complex passwords for your online gaming and other accounts, and change them regularly.
• Avoid meeting unknown people during online games.
• If you encounter any problems, inform your parents or guardians.

Action Taken
On January 24, 2024, ANI reported that the cyber department of the Ministry of Home Affairs issued a warning to players to remain vigilant due to the increase in hacking activities through game applications. As of December 15, 2023, the government had closed 581 operations, of which 174 were related to betting and gambling. Popular apps like PUBG and Garena Free Fire were among them. Betting platforms were depositing UPI payments into fake bank accounts, and the collected money was used through hawala, cryptocurrency and other illegal means. Other banned apps included Parimatch, Fairplay, 1XBET, Lotus365, Dafabet, and Betwaysatta.

How to Report Cyber ​​Crime
If you are a victim of online gaming scam, you can report it to cybercrime helpline number 1930 or file a complaint at cybercrime.gov.in. You can also visit your nearest mobile network to file a complaint.

Expert Opinion
Former IPS officer and cyber expert Dr. Triveni Singh he said that scammers lure young players with the promise of rewards and then cheat them out of their money. They attract users by showing them basic prizes, but once they start investing big money, the game turns against them. In some cases, scammers even ask for players’ credit card information. Many young travelers, after falling into this trap, use their parents’ credit cards without their knowledge, only for the parents to discover the scam too late.

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