Our Bureau
Mumbai
In 2024, India witnessed an alarming surge in digital financial fraud, with cybercriminals stealing over Rs 22,842 crore—a staggering 206% increase from the Rs 7,465 crore lost in 2023, according to government data cited by the Ministry of Home Affairs. The number of reported financial cyber fraud incidents soared to over 20 lakh cases in 2024, up 30% from the previous year, reflecting the rapid expansion of the problem across the country.
The sharp increase in digital fraud coincides with the exponential growth of digital payment platforms in India. Transactions via unified payment interface (UPI) alone reached 190 lakh in June 2025, handling Rs 24.03 lakh crore, driven partly by pandemic-induced adoption of cashless payments and India’s vast smartphone user base. While digital payments have boosted financial inclusion, they have also created fertile ground for cybercriminals exploiting the system with sophisticated scams.
Bank-related frauds showed a nearly eightfold jump in the first half of the financial year 2025/26, with private sector banks accounting for 60% of these incidents while public sector bank customers suffered the highest financial losses totaling Rs 25,667 crore. Fraudsters extensively misuse popular platforms like WhatsApp, Telegram, Instagram, and Facebook to lure victims using phishing messages, fake product listings, and payment confirmation scams.
Experts warn that cybercriminals are becoming increasingly sophisticated, employing artificial intelligence and deepfake technology to deceive users and evade detection. Despite government efforts to regulate messaging apps and strengthen cybersecurity, the rising volume of cases highlights the need for enhanced public awareness and robust technological safeguards.
With over 290 lakh unemployed and expanding digital ecosystems, India faces a formidable challenge in combating online financial fraud as these cybercriminal networks continue to grow both in scale and complexity. The Indian Cybercrime Coordination Centre (I4C) predicts losses could exceed Rs 1.2 lakh crore in 2025 if the trend persists.
