Surge in Cybercrimes as Online Transactions Grow: Inside India’s Digital Battle

India Sees Sharp Rise in Cybercrime Amid Surge in Online Transactions

New Delhi – The rapid adoption of digital payments and internet services across India has led to a significant increase in cybercrime incidents over the past two years, including phishing scams, financial fraud, and ransomware attacks, officials have confirmed.

Cybercriminals are increasingly leveraging advanced tools and deceptive techniques to target individuals and institutions, with many cases involving cross-border elements. This has necessitated closer coordination between domestic and international law enforcement agencies.

A senior official from the Central Bureau of Investigation (CBI) identified human error as a key factor exploited by cybercriminals. “Fraudsters use social engineering tactics to manipulate victims into revealing sensitive information. Many people remain unaware of the common strategies used by these criminals, making them especially vulnerable,” the official stated.

Emotional manipulation remains central to these scams, often relying on fear (such as threats of legal action), excitement (fake lottery wins), or urgency (emergency fund requests). Perpetrators commonly impersonate trusted entities such as banks, government agencies, or even friends and family members to deceive their targets.

In recent months, there has also been a surge in frauds involving Unified Payments Interface (UPI), QR codes, card skimming, SIM card swaps, and cryptocurrency scams. Fraudulent investment schemes and unauthorised transactions through cloned banking apps have also become widespread.

The Indian Computer Emergency Response Team (CERT-In) has repeatedly issued advisories warning of rising ransomware threats. Officials report that the dark web has emerged as a hub for the sale of stolen data, hacking tools, and illicit services, including “Ransomware-as-a-Service” (RaaS) operations.

To counter these developments, the Government of India has significantly enhanced its cybercrime prevention infrastructure. The Indian Cyber Crime Coordination Centre (I4C), under the Ministry of Home Affairs, has been established to streamline cybercrime investigations and has been integrated with law enforcement agencies across the country.

Over 50,000 “Cyber Commandos” have been deployed at police stations nationwide, and a dedicated online portal has been launched for reporting cybercrimes — especially those involving women and children — to ensure swift action.

As part of its comprehensive strategy, the CBI has launched Operation Chakra-V, aimed at combating organised cybercrime through intelligence-gathering, legal action, targeted raids, and prosecution. Since its initiation earlier this year, the agency has conducted operations in multiple states including Rajasthan, Delhi, Haryana, Uttarakhand, and Uttar Pradesh.

These efforts have primarily focused on dismantling syndicates involved in digital arrest scams and online impersonation frauds. Authorities have also intensified investigations into SIM card supply chains that support criminal activities.

The CBI has identified new cybercrime hotspots emerging outside traditional centres such as Jamtara (Jharkhand) and Nuh (Haryana). New locations now under scrutiny include Kolkata and Purulia in West Bengal, Mumbai (Maharashtra), Mathura (Uttar Pradesh), and Bharatpur and Alwar in Rajasthan.

In a major crackdown, nine individuals were recently arrested for allegedly operating over 8.5 lakh mule bank accounts across more than 700 bank branches. These accounts were reportedly used to channel illicit funds linked to digital arrest scams and other financial frauds.

Based on intelligence inputs, coordinated searches were conducted at 42 locations across six states — Rajasthan, Delhi, Uttarakhand, Haryana, Jharkhand, and Uttar Pradesh.

According to a CBI spokesperson, the arrested individuals were part of a larger cybercriminal network involved in identity fraud, impersonation, fraudulent advertisements, fake investment platforms, and scams leveraging UPI-based payment systems.

Officials also highlighted the role of rogue bank employees, intermediaries, and e-Mitra operators in facilitating the creation and operation of mule accounts by bypassing KYC protocols and other regulatory safeguards.

In a separate operation earlier this month, the CBI raided 10 locations across Delhi, Haryana, Uttar Pradesh, and Maharashtra, arresting a man in Mumbai accused of supplying pre-activated SIM cards and mule accounts to criminal organisations.

Last month, the agency arrested 11 cybercriminals in two separate operations. The first led to the arrest of six individuals for defrauding Japanese nationals through fake call centres, following raids at 19 locations across Delhi, Haryana, and Uttar Pradesh. In the second case, five suspects were arrested in a pan-India operation targeting unauthorised SIM card sales, with raids conducted in Assam, West Bengal, Bihar, Uttar Pradesh, Maharashtra, Telangana, Karnataka, and Tamil Nadu.

Since the launch of the National Cybercrime Reporting Portal in 2021, more than 1 million complaints have been registered. Authorities report that swift action through the portal has enabled the recovery of nearly ₹4,000 crore to date.

Officials credit this success to improved coordination between the I4C, state police forces, and financial institutions, which has allowed for quicker response times and better tracking of fraudulent digital transactions.

As cybercriminals continue to adapt and innovate, government agencies are urging citizens to remain vigilant, avoid sharing sensitive personal or financial information online, and immediately report suspicious activities through the official reporting platforms.