Karnataka Loses Rs 5,474 Crore to Cyber Fraud: Rising Digital Crime and Declining Detection Rates Alarm Authorities

Cyber criminals are increasingly employing sophisticated methods like VPNs, encrypted messaging platforms, and dark-web tools to avoid detection.

Bengaluru:

Home Minister G Parameshwara revealed to the Legislative Assembly on Wednesday that Karnataka has suffered losses amounting to Rs 5,474 crore due to cyber fraud over the past three years. The minister was responding to questions regarding the growing threat of digital fraud.

According to official data presented in the House, Karnataka documented 22,255 cybercrime cases in 2023, 22,478 cases in 2024, and 13,000 cases thus far in 2025.

The data further indicates a concerning downward trend in case resolution rates. Only 6,159 cases were solved in 2023, dropping to 3,549 in 2024, and merely 1,009 in 2025 to date.

Financial damages have seen a dramatic increase during this period. Cyber fraudsters extracted Rs 873.29 crore in 2023, Rs 2,562.63 crore in 2024, and already Rs 2,038.84 crore this year, bringing the three-year aggregate to Rs 5,474.76 crore.

The Home Minister identified several contributing factors behind this surge in cyber fraud incidents. The significant growth in internet users across Karnataka has expanded the potential victim pool for fraudsters. Additionally, insufficient digital literacy and awareness among citizens continues to render them susceptible to online scams.

Perpetrators leverage VPNs, encrypted communication tools, and dark-web resources to shield their activities from law enforcement. The rapid expansion of digital payment infrastructure has also provided new opportunities for fraudulent activities.

The report highlighted that broader societal issues including unemployment, poverty, urban stress, excessive social media exposure, and eroding moral values have further contributed to the rise in such offenses.

The government also acknowledged systemic challenges, such as inadequate law enforcement capabilities in cybercrime investigation and significant delays in judicial proceedings, which hamper effective deterrence and successful prosecution of perpetrators.