BENGALURU: Karnataka continues to grapple with a surge in digital-arrest fraud cases, with victims losing a staggering Rs 11.6 crore in just the first 59 days of 2026. The alarming data released by the state home department reveal that cybercriminals are striking almost every day, with an average daily loss of nearly Rs 19.6 lakh across the state.
Despite sustained awareness campaigns by the Union government, investigating agencies, state police, the Income Tax department and media organisations, the recovery rate remains extremely low. Out of the Rs 11.6 crore lost so far this year, authorities have recovered only Rs 25.2 lakh, which amounts to just about 2.2 per cent of the total fraud amount.
Officials say the figures highlight how cybercriminals are constantly evolving their tactics even as authorities attempt to counter them through awareness drives and enforcement measures.
The trend over the last three years shows how rapidly digital arrest fraud has grown into one of the most damaging cybercrimes affecting citizens. According to official records, victims in Karnataka have collectively lost more than Rs 468.6 crore to such scams between January 2023 and February 2026.
Digital-arrest fraud typically involves cybercriminals impersonating law enforcement officers, central agencies or government officials. Victims are told that they are involved in criminal activities such as money laundering or drug trafficking and are threatened with immediate arrest. The fraudsters then force victims to transfer large sums of money to avoid supposed legal action.
One recent case illustrates the scale and audacity of such scams. On March 8 this year, a 94-year-old research scholar filed a complaint after being cheated of nearly Rs 5 crore by fraudsters who convinced him that he was under digital arrest and needed to transfer funds for verification.
Officials say that such cases demonstrate how criminals are increasingly targeting vulnerable individuals and extracting huge amounts of money through intimidation and psychological pressure.
Data from the past three years indicates that the number of victims may fluctuate, but the financial damage continues to rise sharply.
In 2023, when digital-arrest fraud was still emerging as a cybercrime trend, 196 cases were registered in Karnataka. These cases resulted in losses of Rs 22.5 crore, while authorities recovered Rs 2.3 crore.
The situation worsened significantly in 2024. During that year alone, police registered 1,129 cases across the state, with victims losing a record Rs 219.4 crore. While the recovery amount rose to Rs 27.8 crore, it still accounted for only around 13 per cent of the total losses.
Interestingly, the number of cases declined sharply in 2025. Only 345 cases were registered during the year. However, the total financial loss remained almost the same as the previous year, at RS 215.1 crore. Authorities recovered just Rs 10.7 crore, which was roughly five per cent of the defrauded amount.
Cybercrime experts say this trend indicates that criminals are now focusing on fewer victims but extracting much larger sums from each target.
In 2024, the average loss per case was about Rs 19.4 lakh. In 2025, this figure jumped dramatically to ₹62.3 lakh per case. For 2026, although only 25 cases have been recorded so far, the average loss per case already stands at Rs 46.3 lakh, suggesting that the overall financial damage could climb significantly as the year progresses.
Officials also note that the figures for March 2026 are yet to be fully compiled. However, several major complaints have already been registered this month, raising concerns that the annual total may exceed early projections.
Responding to the rising threat of cybercrime, Karnataka Home Minister G. Parameshwara recently informed the state legislature that the government has directed police to ensure faster investigation of cybercrime cases.
He said the state currently operates 45 Cyber Economic and Narcotic (CEN) police stations dedicated to tackling cyber offences. The first such police station in the country was established in Karnataka in 2010.
