A disturbing new analysis warns of the negative side as India accelerates its digital transformation: The most deadly tool in a cybercriminal’s toolbox is quickly becoming artificial intelligence (AI).
In 2024 alone, a staggering Rs 22,812 crore ($2.78 billion) was lost to digital scams, the majority of which were caused by AI frauds and took place in both rural and urban areas of the nation, including Bengaluru.
The research was included in “The State of AI-Powered Cybercrime: Threat & Mitigation Report 2025,” which was published in collaboration with Tekion, an automotive technology company, and GIREM (Global Initiative for Restructuring Environment and Management). Karnataka’s director general and inspector general of police (DG&IGP), M A Saleem, delivered the report in Bengaluru on Wednesday.
According to the paper, cybercriminals are using AI to create phishing emails, replicate websites, and even create frauds that are powered by deepfakes. Eighty percent of the phishing emails contained AI technologies, meaning that eight out of ten phishing efforts used AI strategies.
While pointing out that Indian users were regularly targeted through spoof brand communications, malicious mobile apps, and imitation dashboards, the report cautioned that AI is changing the landscape of cybercrime and allowing attackers to carry out faster, more targeted, and more personalized attacks than ever before.
“This report is a wake-up call. It doesn’t just document cyber threats, it reveals the human cost behind them,” said Jay Vijayan, founder and CEO of Tekion.
“Phishing scams, identity theft, cyber slavery are no longer abstract dangers. AI has turned them into a daily reality,” he added.
As an example of how even well-defended corporate networks are suddenly vulnerable, the research cautioned that organized e-crime syndicates like FIN7, who have been targeting the US car sector, have begun using AI to attack restaurants and hotel chains in India.
In 2024, India received a record 1.91 million complaints about cybercrime, up from 1.55 million the year before. This is an almost ten-fold increase since 2019.
In a single year, the losses have quadrupled, especially in financial fraud. In 2024, digital scams known as “digital arrest” schemes, which include impersonating the police or government, totaled Rs 1,936 crore. Over the past four years, hackers in India have embezzled more than Rs 33,000 crore from people and businesses.
According to the police, the number of cybercrime complaints in Karnataka has increased fivefold in the past two years, from 20,894 in 2022 to 97,929 in 2024. From Rs 113 crore in 2022 to Rs 2,396 crore in 2024, financial losses increased dramatically.
In the first eight months of 2024, 12,356 cybercrimes were reported in Bengaluru alone, resulting in damages above Rs 1,242 million. The state saw over 11.46 million malware detections and 1.78 million ransomware attempts in 2024, according to the police, who cited a recent danger assessment. Many of these attacks used artificial intelligence (AI) tactics to avoid detection and adapt continually.
AI is also being used by cybercriminals to create phoney applications that imitate real government services like Parivahan or phony bank helplines.
According to the research, these apps are frequently used to spread malware and steal private financial data. According to the survey, India is currently the second-most-targeted nation in the world for cyberattacks pertaining to cryptocurrency, after the United States.
“The rise in cyber threats underscores the critical need for stronger cybersecurity measures and a robust awareness at every level of the society,” said GIREM chairman Shyam Sundar S Pani. To combat these threats, Karnataka has established India’s first Cyber Command Centre, unifying 45 cybercrime police stations to address financial frauds, ransomware, identity theft, and other cybercrimes. “Awareness is being created to educate the people about the emerging threats,” DG&IGP Saleem added.
The report recommended implementing advanced cybercrime labs in universities and police departments, integrating digital safety and cybersecurity education in schools and workplaces, deploying AI-based threat detection systems across critical infrastructure, launching public awareness campaigns in regional languages, and bolstering international cooperation to combat cyber slavery and transnational crimes as part of the necessary cyber defense measures.
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