India lost Rs 22,842 crore to cybercriminals and fraudsters in 2024

India lost Rs 22,842 crore to cybercriminals and fraudsters in 2024

The numbers are not just concerning—they are alarming. From ₹2,306 crore in 2022 to over ₹22,000 crore last year, the rise has been exponential

In a chilling reflection of the scale and sophistication of cybercrime in India, the country lost a staggering ₹22,842 crore to digital fraud in 2024, according to DataLEADS. The numbers are not just concerning—they are alarming. From ₹2,306 crore in 2022 to over ₹22,000 crore last year, the rise has been exponential. And 2025 may only deepen the crisis, with the Indian Cybercrime Coordination Centre (I4C) forecasting potential losses exceeding ₹1.2 lakh crore by year-end.

This isn’t just a crisis of numbers; it’s a crisis of trust, safety, and the very fabric of our digital economy.

At the heart of the problem lies the dramatic expansion of digital payments. Unified Payments Interface (UPI) and mobile wallets have revolutionised transactions, empowering people across the country, especially in rural and semi-urban areas. The volume and value of digital transactions have surged—₹24.03 lakh crore worth of UPI transactions were recorded in June 2025 alone. India now accounts for nearly half of all global digital payments.

But with this rapid adoption has come an equally swift rise in cyber fraud. The gap between digital infrastructure expansion and cybersecurity preparedness is now too wide to ignore.

The Perfect Storm: Opportunity Meets Exploitation

Several factors have contributed to this boom in online scams.

The COVID-19 pandemic played a significant role in accelerating digital payments. With concerns over physical cash spreading the virus, even the government encouraged the switch to UPI platforms such as Paytm, PhonePe, and Google Pay. While this expanded financial inclusion, it also exposed millions—especially first-time users and the digitally uninitiated—to vulnerabilities they did not understand.

Compounding the issue is the low cost of internet in India, and the widespread use of smartphones—over 440 million by 2019. This makes mobile-first scams easier to execute and harder to trace.

Cybercriminals have grown in both number and capability. With over 290 lakh unemployed people in the country, the economic incentive to participate in such schemes is disturbingly high. The result? Scammers now operate with almost corporate-like efficiency, targeting not just individuals but entire sectors—banking, insurance, retail, and even healthcare.

Technology as a Double-Edged Sword

Cybercriminals have moved far beyond rudimentary phishing emails. Today’s fraudsters are well-versed in AI tools and use deepfake technology to impersonate celebrities and business leaders, lending authenticity to their scams. Videos, logos, and language are convincingly cloned to dupe even educated users.

The most worrying trend, however, is the scale of damage. In the first half of the current fiscal year alone, the Reserve Bank of India reported an eightfold rise in bank-related frauds—₹2,623 crore in 2023-24 to over ₹21,000 crore in 2024-25. Customers of public sector banks were the worst-hit, losing nearly ₹26,000 crore, despite private sector banks accounting for most of the reported incidents.

Insurance scams, often involving health or motor policies, are increasingly rampant. Fraudsters impersonate reputed insurers like HDFC, Kotak, or Royal Sundaram and approach users through WhatsApp, luring them into app-based traps.

Investment fraud is another rising threat, with victims—from young professionals to retired seniors—duped by offers of impossible profits and fake trading platforms. What’s common across all these scams is their reliance on instant digital communication platforms like WhatsApp and Telegram.

Platforms Without Accountability

This brings us to one of the thorniest issues—platform accountability.

Data shows that over 15,000 finance-related cybercrime complaints were reported on WhatsApp in January 2024 alone. Thousands more followed in subsequent months, alongside scams on Telegram, Facebook, Instagram, and YouTube.

Yet, these platforms continue to claim legal immunity by identifying themselves as “intermediaries” or “platforms,” not “publishers.” This allows them to escape responsibility for content and criminal activity on their networks. Even as they scale back fact-checking, human moderation, and grievance redressal, they have little to fear legally.

To be fair, the Indian government has enacted some regulations to hold digital platforms accountable. However, enforcement remains patchy, especially given the speed with which new scams evolve.

What Must Be Done

India cannot afford to let its digital backbone become a hunting ground for fraudsters. A multi-pronged approach is essential:

  1. Stronger Laws and Enforcement: There must be stricter enforcement of digital safety laws and stronger penalties for non-compliance by platforms. Specialised cybercrime units must be empowered with technical resources and trained personnel.

  2. Platform Accountability: Tech companies must be mandated to build in fraud detection systems, cooperate with law enforcement, and take swift action against scam-related content. They should not be allowed to hide behind their "platform" status.

  3. User Education: Awareness is the first line of defence. The government, in collaboration with private firms and NGOs, should run massive campaigns to teach users—especially in Tier 2 and Tier 3 cities—how to recognise scams, verify sources, and report frauds.

  4. Transparency in Banking and Insurance: Financial institutions must be transparent about digital risks and help customers recover from fraud. Quick and fair redressal mechanisms can build trust and deter criminals.

  5. AI and Tech for Good: The same technology that fraudsters use—like AI—must be harnessed by banks, governments, and cybersecurity experts to build smarter defences.

The Road Ahead

India’s ambition to lead the global digital economy is real and achievable. But a foundation of trust and safety is essential. Right now, that trust is under siege. The fight against cybercrime is not just about catching criminals. It is about protecting the ordinary Indian who simply wanted to pay for groceries online, or invest in their future, or get insured, and was punished for embracing digital India. The time to act is now. Not with platitudes, but with policy. Not with blame-shifting, but with accountability. Because a truly digital India cannot be built on stolen data and broken trust.

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