Bengalureans lost Rs 1,998 cr to cyberfrauds in 2024

According to police data, an average of 48 cybercrime cases are registered daily in the city, with a total of 17,560 cases reported in 2024.
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BENGALURU: Despite aggressive awareness campaigns by the police and various organisations, Bengalureans have lost a staggering Rs 1,998.4 crore to cybercriminals in 2024, which is Rs 944 crore more than the total amount lost in the previous two years combined.

Though the number of cases slightly dipped in 2024 compared to 2023, the money people lost last year is almost three times more than it was in 2023. The police have frozen Rs 652 crore and recovered Rs 139 crore.

According to police data, an average of 48 cybercrime cases are registered daily in the city, with a total of 17,560 cases reported in 2024. Of these, only 1,026 cases have been detected. The Whitefield division police have registered 3,680 cases followed by South division police.

A senior police officer handling cybercrime cases in the southeast division said that financial literacy, greed and lack of awareness are the primary reasons for these massive losses. Interestingly, IT and banking sector employees are a majority among the victims of cyber fraud. While OTP-based frauds and other scams have declined due to increased awareness, investment frauds and digital arrest scams have significantly contributed to financial losses in 2024.

The officer said that the low recovery rate is due to delayed reporting by victims. Before the victims realise that they have been scammed and call the 1930 cyber helpline, the criminals would have withdrawn the money. Only the remaining amount in mule accounts can be frozen, limiting recovery efforts.

‘Stricter bank verification processes could eradicate 50% of cyber frauds’

Investigations have revealed that cybercrime operations in India involve two key teams. The first team works on creating mule bank accounts, particularly current accounts. They exploit students and low-income workers, who often remain unaware of the fraudulent transactions occurring in their accounts.

To create current accounts, fraudsters register fake companies under the Companies Act, submitting forged GST certificates and Udyam registration certificates (issued for small and medium enterprises).

They also set up physical locations for verification, often posing as logistics or technology firms. When authorities freeze these accounts, the criminals create new ones under different names. After securing the accounts, they collect signed cheques and ATMs to withdraw fraudulent funds. Some individuals are even paid to help create these accounts.

The second team facilitates money transactions. They withdraw funds through ATMs, cheques in secondary transactions, then transfer them to secure accounts.

The money is then invested in cryptocurrencies, particularly USDT wallets, and further distributed across multiple wallets — many of which operate without proper KYC verification. If funds are transferred to foreign wallets, tracing and recovering the money becomes nearly impossible. The masterminds behind these cybercrimes operate from abroad to evade arrest and prosecution. They use VPNs and third-party apps to coordinate with operatives in India.

The officer mentioned that stricter bank verification processes could eradicate 50% of cyber frauds, as current accounts serve as the backbone of these crimes. The groundwork for cyber fraud is largely done by people in India who create fake accounts. Unemployment and underemployment are key factors driving people to engage in such activities, the officer added.

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