By Ashwani Mishra, Editor-Technology, 63SATS
The digital revolution has been a double-edged sword for India, empowering millions with financial inclusion while simultaneously opening doors for an unprecedented rise in cybercrime.
What started as a promise of accessible banking and financial systems has increasingly become a playground for cyber fraudsters, exploiting technological advancements and unsuspecting citizens. The numbers paint a stark picture of a country grappling with a growing menace.
Karnataka: A Threefold Rise in Cybercrime Losses
In Karnataka, cybercrime has skyrocketed to alarming levels. According to senior police officials, financial losses due to cyber fraud in the state touched a staggering Rs 2,600 crore in 2024, a threefold increase from Rs 700 crore in 2023.
Nearly 50% of this loss stems from investment frauds, with notorious schemes like the “FedEx scam” and “digital arrest” cases accounting for over Rs 200 crore. Cybercriminals are increasingly misusing legitimate financial mechanisms such as bank accounts and net banking to siphon off funds, underscoring the need for stricter regulatory frameworks.
Mumbai: A 350% Spike in Cyber Fraud
Mumbai, India’s financial hub, has not been spared either. In just 11 months of 2024, cyber frauds cost Mumbaikars Rs 1,181 crore—a jaw-dropping 350% increase from the previous year. Investment frauds alone rose over 20 times, with losses surging from Rs 7.76 crore in 2023 to Rs 191 crore by mid-2024.
Other scams, such as task job frauds and digital arrest schemes, added to the mounting losses, which stood at Rs 36.89 crore by June this year. This sharp rise highlights the vulnerability of even the most tech-savvy urban population to sophisticated cyber scams.
Hyderabad: A Hotspot for Cyber Fraud
Hyderabad recorded Rs 385 crore in losses to cybercrime in 2024, with 25,831 cases reported to the National Cyber Crime Reporting Portal. The city has witnessed a 41% increase in overall crime rates, with cyber fraud emerging as a major contributor. Digital arrest cases and identity theft are on the rise, pushing police to form zonal-level cybercrime investigation units. Despite these efforts, the escalating number of cases underscores the growing challenge for law enforcement.
Visakhapatnam: A Steady Increase in Cyber Threats
Visakhapatnam, too, is seeing a surge in cybercrime, with residents losing over Rs 46 crore between January and August 2024. Police registered more than 240 complaints during this period, with daily reports of 10 to 20 victims falling prey to fraudsters. Beyond financial fraud, cybercriminals in Vizag have ventured into identity theft, cyberstalking, and even trafficking, reflecting the expanding scope of digital crimes.
Kerala: A State Under Siege
Kerala’s citizens have lost a staggering Rs 635 crore to cyber fraud as of October 2024, a figure expected to climb to Rs 800 crore by year-end.
Popular scams like online trading and job frauds are rampant, targeting a diverse demographic—from farmers and pensioners to IT professionals and priests. Despite rigorous efforts, enforcement authorities have managed to recover only about 10% of the losses, emphasizing the need for enhanced preventive measures.
The surge in cybercrime across India’s states reflects a broader challenge of safeguarding digital financial systems. From Karnataka’s alarming rise in investment frauds to Mumbai’s steep increase in task job scams, the scale of cybercrime demands immediate attention. Cities like Hyderabad, Visakhapatnam, and states like Kerala further highlight the diverse tactics employed by fraudsters, leaving citizens and law enforcement grappling with losses and investigations.
To combat this epidemic, a cohesive strategy involving public awareness, enhanced cybersecurity protocols, and the integration of advanced technologies is essential. The path to a secure digital future lies in the collaboration of individuals, financial institutions, and authorities. Only then can India turn the tide against cybercriminals and restore trust in its burgeoning digital ecosystem.
