Cybercrime in India: ₹1,600 crore frozen in bank accounts as victims allege bribery, delays

₹14,500 crore lost to cyber fraud in three years

Between 2021 and March 2024, Indians reported losses of ₹14,500 crore to cyber fraud, according to the Ministry of Home Affairs’ 2023–24 annual report. Police froze suspicious bank accounts to prevent further transfers, holding on average 10% of stolen funds. This has left ₹1,600 crore locked in accounts awaiting clearance.

While higher authorities have issued orders for prompt release of funds linked to confirmed cybercrime cases, victims say the process often comes with hurdles. Some allege being asked to “offer” 10–30% of the frozen amount as an unofficial fee to secure refunds.

Cybercrime reporting and prevention mechanisms now operate in 13,279 police stations across 773 districts. Alongside the National Cybercrime Reporting Portal, states have their own cybercrime cells, with district and city units set up to handle cases. Despite these measures, fraudsters — many based abroad — continue to siphon off billions from Indian citizens.

Freezing accounts: a controversial process

In Gujarat and elsewhere, police are expected to freeze only amounts directly linked to cybercrime. However, victims report that full account balances are often frozen. For instance, if ₹1–2 lakh of a ₹10 lakh account is linked to fraud, the entire ₹10 lakh may be blocked.

The Ahmedabad City Cyber Crime Branch is one of the few units following the directive to freeze only the relevant sum. Victims say that in most cases, funds remain inaccessible for months under the pretext of ongoing investigations.

The government has enlisted around 23,000 cyber volunteers, 22,000 cyber awareness volunteers, and 10,000 cyber experts to assist trained police teams. Even so, recovering funds remains a challenge. In Gujarat alone, police returned ₹113 crore to victims in 2024, while ₹295 crore remains pending court approval. Since 2020, ₹672 crore has been frozen, with ₹97 crore added to the tally this year.

Cybercrime cases rise sharply

Data shows a steep rise in cybercrime complaints over the past six years:

Mobile numbers blocked, but fraud adapts

In the past three years and three months, 4.29 lakh mobile numbers used in cyber fraud have been blocked with telecom operator support. Authorities have also locked 69,921 mobile phones and reverified 12,086 numbers. However, cybercriminals continue to obtain national and international numbers under false identities, enabling scams to persist.

From January to March 2024, WhatsApp was the platform most used for social media–based e-cheating, with 43,797 victims. Other platforms targeted included:

• Telegram: 22,680 victims
• Facebook: 20,766 victims 
• Instagram: 19,800 victims
• YouTube: 3,882 victims

Common scam tactics

According to police data, cybercriminals use a variety of approaches, often employing multiple approaches in the same case.  The figures below represent the share of cases in which each scam type was reported:

• 40%: Customer care scams, refund frauds, fake KYC expiry alerts
• 40%: Investment scams, task-based scams, digital arrest, FedEx scams
• 24%: Sextortion
• 23% : Loan app scams, illegal lending
• 21%: Illegal gaming, trading apps, cryptocurrency scams
• 20%: Online booking scams, fake franchise offers, QR code scams
• 10%: Romance scams
• 8%: AEPS fraud, biometric cloning
• 8%: Android malware attacks
• 6%: Ransomware, hacking

As digital scams grow more sophisticated, experts warn that tackling cybercrime will require not just faster investigations but also a transparent, accountable refund process — because for victims, the long wait to reclaim what was theirs can be just as punishing.