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India faced a loss of Rs 22,842 crore due to cybercriminals and frauds in 2024, according to DataLEADS, a media and technology firm located in Delhi. The Indian Cybercrime Coordination Centre, known as I4C, a national agency that connects state and central law enforcement, forecasts that losses for Indians will exceed Rs 1.2 lakh crore this year. The thefts carried out by digital criminals last year were almost three times higher than the Rs 7,465 crore lost in 2023 and nearly ten times the Rs 2,306 crore from 2022, as reported in 'Contours of Cybercrime: Persistent and Emerging Risk of Online Financial Frauds and Deepfakes in India' by DataLEADS. The rise in cybercrime complaints has also been significant; around twenty lakh complaints were filed in 2024, increasing from about 15.6 lakh the previous year and ten times the figures from 2019. This large increase in complaints and stolen money suggests one clear fact - digital criminals in India are becoming increasingly clever and effective, and their numbers are growing in a country where nearly 290 lakh people are unemployed.
What has caused this dramatic rise over the last three years?
The main reason is the growing popularity of digital payment methods, such as smartphone apps like Paytm and PhonePe, and the online sharing of financial information through messaging services that many trust to be secure, like WhatsApp and Telegram. According to government statistics, there were over 190 lakh transactions using the unified payment interface, or UPI, just in June 2025, totaling Rs 24.03 lakh crore. The value of digital payments has increased from around Rs 162 crore in 2013 to Rs 18,120.82 crore in January 2025, with India contributing to nearly half of all digital payment transactions globally. A lot of this growth can be linked to the pandemic and subsequent lockdowns.
During the Covid crisis, the government encouraged people to switch to UPI applications like Paytm to promote social distancing and reduce contact with cash, which might spread the virus. The government also believed that digital payment methods would help increase access to financial services, especially in rural regions. By 2019, India had already reached 440 million smartphone users, and data costs were among the lowest globally, with 1 GB priced at Rs 200, or under $3. This affordability made it easier for individuals in small towns and villages to use financial services on their phones, which was more economical than establishing traditional banks. However, as the digital payment landscape thrived, so did a vast network of cybercriminals and fraudsters who adapted and improved their methods. Nowadays, online financial scams in India affect various industries, including banking, insurance, healthcare, and retail, employing complex schemes to avoid being detected. Today's digital con artists are also skilled in using technology like Artificial Intelligence and create deepfake videos featuring celebrities and business figures to reduce suspicion.
Frauds related to banking have significantly surged; the Reserve Bank of India noted that there was nearly an eightfold increase in the first half of the financial year 2025/26 compared to the same timeframe last year. The total monetary loss was astonishing, rising from Rs 2,623 crore to Rs 21,367 crore. Nearly 60 percent of these events were tied to private sector banks. However, customers of public sector banks faced the most severe losses, amounting to Rs 25,667 crore. Scams in the insurance industry were also prevalent. These scams, which involved life, health, car, and general insurance, are becoming more attractive for cybercriminals, especially as insurance companies encourage clients to use app-based services. In these scams, as in many others, recognized brand names like HDFC, Kotak, Royal Sundaram, and Shriram are frequently used, and their logos are often displayed prominently during the first contact, which typically occurs through WhatsApp or another messaging service.
Investment scams present another challenge. Many educated people, drawn in by the promise of impossible returns, have fallen victim to persuasive con artists, highlighting the importance of being informed and cautious with online financial transactions.
Frequent digital scams:
Phishing Messages: These can come as SMS or through platforms like WhatsApp, claiming to offer 'prize winnings' or 'refunds' from well-known e-commerce sites like Amazon and Flipkart. They lead individuals to fraudsters who try to gather sensitive information like UPI IDs or credit card details.
Fake Product Listings: Well-known products are advertised at shockingly low prices on 'online marketplaces.' A buyer pays upfront but then the seller disappears.
Payment Confirmation Scams: Scammers send fraudulent messages or emails requesting 'payments' to be 'confirmed.' Clicking on these links can result in the theft of financial details from your device or the installation of harmful software.
Where Do Scammers Operate?
Primarily on WhatsApp.
Data from I4C indicates that over 15,000 complaints related to finance-related cybercrimes were recorded on WhatsApp alone in January 2024. About 14,000 were noted in February, and another 15,000 in March. Other platforms like Telegram, Instagram, Facebook, and YouTube were also included in these figures. This raises an additional concern. Messaging applications and social media companies have positioned themselves as 'platforms' instead of 'publishers,' which enables them to evade responsibility for user-generated content. Additionally, they are increasingly reducing their efforts in fact-checking and moderating content. Although the government has enacted laws that require these companies to be accountable, much more action is needed to guarantee transparency and to capture cybercriminals.
