Indians lost ₹7,000 crore to cyber frauds

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

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

• 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

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.