Cyber fraud in India hits Rs 11,000 crore in 2024

India has witnessed an alarming rise in cyber fraud, with losses surpassing Rs 11,000 crore in the first nine months of 2024, according to the Indian Cyber Crime Coordination Center (I4C).

The report highlights that stock trading scams have led to over Rs 4,000 crore in losses, while digital arrest scams have accounted for more than Rs 1,600 crore.

The surge in fraud is largely attributed to the exponential growth of digital transactions. The Finance Ministry revealed that fraud cases related to United Payments Interface (UPI) transactions have seen an 85% increase in the last financial year.

In FY24, more than 13 lakh cases of fraud involving over Rs 1,000 crore were reported, with UPI transactions witnessing a 57% increase during the same period.

Cyber law expert Pavan Duggal emphasized in a report that India's vulnerability to cybercrime is exacerbated by the absence of a comprehensive data protection framework.

While the Digital Personal Data Protection Act, 2023, was passed, its implementation remains stalled due to pending regulations.

Duggal described the post-pandemic digital surge as the "Golden Age of Cybercrime," where personal data is freely shared online, offering ample resources for cybercriminals to exploit. He also coined the term “Great Indian Vomiting Revolution” to illustrate how individuals unwittingly share large amounts of personal, professional, and social information, making themselves prime targets for fraudsters.

Adding to the complexity, the rise of “cybercrime as a service” – powered by artificial intelligence and the dark web – has turned cyber fraud into a highly scalable and lucrative business.

Criminals now have access to sophisticated tools that automate scams, making them more efficient and harder to trace.

Maharashtra, with its high internet penetration and robust crime registration mechanisms, reports higher cybercrime figures, illustrating both the state’s vulnerability and its efforts in combating these offenses.