Context
According to the Ministry of Home Affairs (MHA), Indians lost over ₹7,000 crore to cyber frauds in the first 5 months of 2025. More than 50% of this loss is linked to cross-border scams originating in Southeast Asia (especially Cambodia), with deep links to human trafficking and organised cybercrime.
Relevance : GS 3 ( Cyber Security, Internal Security, Governance)
Key Data
| Month | Amount Lost (₹ crore) |
| January | 1,992 |
| February | 951 |
| March | 1,000 |
| April | 731 |
| May | 999 |
| Total | ~7,000 crore |
Source: Citizen Financial Cyber Fraud Reporting and Management System (CFRMS) under Indian Cyber Crime Coordination Centre (I4C)
Key Issues Identified
1. Transnational Nature of Cybercrime
- Scams operated from high-security compounds in Cambodia, Laos, Myanmar, Vietnam, Thailand.
- Controlled by Chinese-linked operators.
- At least 53 scam centres identified (45 in Cambodia alone).
2. Human Trafficking Angle
- Thousands of Indians trafficked and forced to work in scam operations.
- Workers recruited via agents under the promise of overseas tech jobs.
3. Types of Scams
- Investment scams, digital arrest scams, and task-based scams (e.g., fake stock trading apps, online tasks-for-money cons).
4. Recruitment Hubs in India
| State | Number of Agents |
| Maharashtra | 58 |
| Tamil Nadu | 51 |
| Jammu & Kashmir | 46 |
| Uttar Pradesh | 41 |
| Delhi | 38 |
- Trafficking route: India → Dubai → China → Cambodia/Vietnam/Thailand.
- Other direct routes: Delhi/Lucknow/Jaipur/Kolkata/Kerala to SEA nations.
Institutional Response
- Inter-Ministerial Panel formed by the Ministry of External Affairs (MEA).
- CBI FIRs filed against SIM card sellers aiding ghost identities.
- Collaboration with Cambodian officials, who sought exact GPS coordinates of scam centres for enforcement action.
Governance Gaps
| Sector | Identified Issues |
| Telecom | Ghost SIM cards issued via fraud |
| Banking | Lax KYC enables mule accounts |
| Immigration | Trafficking routes exploit visa gaps |
Conclusion
The ₹7,000 crore cyber fraud loss highlights India’s growing vulnerability to transnational digital crime networks. Urgent legal, diplomatic, and technological coordination is needed to plug recruitment, financial, and cyber loopholes.
