The scale of cyberfraud losses in Karnataka continues to remain a concern, with victims losing Rs 558 crore between January and July 2026. However, only Rs 1.9 crore has been returned to victims, according to Home Department data.
Authorities have frozen Rs 35.9 crore linked to these cases. The amount returned is barely 5% of the frozen funds and less than 0.4% of the total amount lost.
The recovery effort is also facing manpower shortages in the state’s cybercrime police machinery. Data shows 320 vacant positions, including 200 vacancies at the cybercrime police station under the Bengaluru commissioner’s office.
Karnataka recorded 17,890 cybercrime cases involving Rs 1,841 crore in losses in 2024. Of this amount, Rs 257.8 crore was frozen and Rs 183.6 crore was returned to victims.
In 2025, the state reported 10,703 cases involving Rs 1,756.6 crore. Police froze Rs 158.5 crore and returned Rs 76.7 crore to victims.
Although the number of cases reported in 2026 is less than half the figures recorded in both 2024 and 2025, the average financial loss per case remains high. The average loss stands at around Rs 11.8 lakh per case this year, compared with Rs 10.3 lakh in 2024 and Rs 16.4 lakh in 2025.
Home Minister Priyank Kharge recently told the legislature that the state plans to improve coordination among cybercrime units, police departments, banks, financial institutions and other government agencies. The aim is to help investigators obtain documents and information needed for cases without delays.
Kharge said that after investigations are completed, necessary steps would be taken to recover or release funds as per legal procedures. Pending cases will also be reviewed to identify reasons for delays and issue directions for disposal. Long-pending cases will receive priority, with their progress reviewed periodically.
Official figures show that Karnataka recorded Rs 3,932 crore in cyberfraud losses across 2024, 2025 and 2026 so far. Of this, only around Rs 262 crore has been returned to victims.
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