Cyber frauds in Karnataka hit Rs.5,474 Cr in 3 years: Says Minister

Over the past three years, Karnataka has incurred losses of Rs 5,474 crore due to cyber frauds, of which the police have managed to recover Rs 627 crore, Home Minister G. Parameshwara informed the Legislative Assembly on Tuesday.

Responding to a question from Sakleshpur BJP MLA Cement Manju, the minister said cyber frauds have been on the rise. “In the last four years, around 52,000 cyber fraud cases have been reported in Karnataka, and the numbers are increasing day by day,” he said.

Parameshwara added that the state government had proposed an amendment to police laws to curb cyber crimes. However, the All India Gaming Federation secured a court stay on the amendment, and the matter is now pending before the Supreme Court, with the next hearing scheduled for December 19.

According to the minister, 2023 saw over 22,000 cyber fraud cases, causing losses of Rs 873 crore, with Rs 177 crore recovered. In 2024, around 22,400 cases led to losses exceeding Rs 2,500 crore, with authorities recovering more than Rs 300 crore. For 2025, reported cases have dropped to roughly 13,000, resulting in losses of over Rs 2,000 crore, with Rs 125 crore recovered so far.

To tackle the rising threat of cyber frauds, Karnataka has taken several proactive measures. The state was the first in India to establish a dedicated cyber vertical headed by a Director General of Police and currently operates 43 cyber police stations under a central command. The government has proposed amendments to police laws to strengthen cybercrime prevention, while ongoing efforts focus on recovering defrauded money, with over Rs 627 crore reclaimed in the past three years. In addition, awareness campaigns, officer training, and technology-driven monitoring systems have been introduced to prevent frauds, alongside coordination with banks, financial institutions, and other states to address cases that cross borders.

Despite strong initiatives, cyber fraud continues to rise in Karnataka due to the rapid evolution of scam techniques, the sheer volume of cases, and the technical complexity of tracing criminals. Many frauds originate outside the state or country, and delays in reporting further reduce chances of timely intervention. Experts say that while technology and law enforcement help, human vulnerability and the high financial incentives for cybercriminals make it difficult to completely stop such crimes.

Highlighting Karnataka’s proactive measures, Parameshwara said the state was the first in India to set up a dedicated cyber vertical headed by a Director General of Police. He also noted that Karnataka currently has 43 cyber police stations operating under a central cyber command, emphasizing ongoing efforts to reduce the incidence of cyber fraud.

“Cyber fraud is a serious challenge not only for Karnataka but for the entire country. We are committed to strengthening our fight against it,” the minister said.