Even as public attention has recently focused on “digital arrest” frauds, official data shows that investment-related scams continued to account for the highest number of cybercrime cases reported across Karnataka in 2025.
Figures presented by the Home Minister during the latest State Legislature session revealed that 6,156 investment fraud cases were registered during the year, compared to 346 digital arrest cases. Among the investment fraud complaints, 3,487 involved victims being persuaded to invest in stocks and shares through fake applications. Another 2,669 cases were linked to fraudsters using social media and instant messaging platforms to lure people with part-time job offers, online tasks, and paid product review schemes.
Authorities said online money transfer frauds, OTP scams and credit card frauds also contributed significantly to cybercrime registrations in the State.
Older fraud patterns continue quietly
A senior police official noted that as awareness campaigns focus on new fraud trends, older methods often continue unnoticed. This does not mean such crimes have reduced, but rather that they operate below public attention.
Loan app harassment, once widely reported, is one example. Following multiple FIRs and enforcement action in 2023 against firms allegedly linked to foreign operators, several apps were removed from app stores. Despite this, 210 cases of loan app harassment were still recorded in 2025.
How investment frauds operate
Police describe investment fraud as one of the oldest cybercrime models. Fraudsters send personalised messages offering easy online earnings through simple activities such as liking social media posts or reviewing products. Victims initially receive small payments to build trust. Later, they are encouraged to invest larger amounts with promises of higher returns, turning job scams into investment frauds.
In another method, victims are added to messaging groups that provide free stock tips. They are then asked to invest using fake trading apps that display high profits but block withdrawals and demand additional payments as withdrawal fees.
Officials warned that cybercriminals exploit people’s desire for quick earnings. “There is no free lunch. There is no way anyone can give higher returns than is regularly possible in the market. That is the first red flag. People should desist from interacting with unknown entities online,” a senior officer said.
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