Cyber fraud stole Rs 11,333 cr till Sep, PM warns against 'digital arrest'

India incurred losses of Rs 11,333 crore due to cyber fraud during the first nine months of 2024, according to data from the Indian Cyber Crime Coordination Centre (I4C) under the Ministry of Home Affairs (MHA).

 

Stock trading scams emerged as the biggest culprit, with 228,094 complaints filed, incurring losses of Rs 4,636 crore. Investment scams followed closely, with Rs 3,216 crore lost across 100,360 complaints. Another Rs 1,616 crore was siphoned off through “digital arrest” frauds involving 63,481 complaints, according to a report by The Indian Express.

 

Data from the Citizen Financial Cyber Fraud Reporting and Management System (CFCFRMS) also revealed that nearly 12 lakh complaints of cyber fraud were registered in 2024 alone. Alarmingly, 45 per cent of these cases originated from Southeast Asian nations such as Cambodia, Myanmar, and Laos. Since its inception in 2021, the CFCFRMS has logged 3.005 million complaints, accounting for losses totalling Rs 27,914 crore.

 

 

In 2023, 1,131,221 complaints related to cybercrime were registered, while 514,741 and 135,242 complaints were recorded in 2022 and 2021, respectively.

 

PM Modi warns against 'digital arrest'

 

Prime Minister Narendra Modi, during the 115th edition of Mann Ki Baat radio programme, issued a stern warning against “digital arrest” scams. He clarified that no government agency contacts individuals via phone or video calls for investigations.

 

“There is no system like digital arrest under the law,” PM Modi said, urging citizens to remain vigilant and report suspicious activities.

 

Money laundering through digital tools  

 

An analysis of cyber frauds this year revealed that stolen money is laundered through a range of tools, including cheques, central bank digital currency (CBDC), fintech crypto, ATMs, merchant payments, and e-wallets. To combat these activities, the I4C has frozen approximately 450,000 mule bank accounts used for laundering cybercrime proceeds.

 

At a recent anti-terror conference, the I4C raised concerns about the challenges investigators face, including the anonymity of digital wallets, foreign money exchanges, inadequate Know Your Customer (KYC) protocols, and the proliferation of cryptocurrency scams.

 

The I4C has also collaborated with the telecom ministry to block over 17,000 WhatsApp accounts linked to cybercriminals in Southeast Asia, marking a significant step in disrupting offshore criminal networks and strengthening India’s cyber defence.