India is facing a growing cybercrime crisis, with losses of more than Rs 31,500 crore reported since 2019. A new report by the Parliamentary Standing Committee on Home Affairs has warned that cyber threats such as financial fraud, deepfakes, online harassment and cyber trafficking are no longer isolated cases but systemic risks that threaten the economy, public trust and national security. The panel has urged the government to strengthen laws, tighten enforcement and provide better victim support.
Financial fraud dominates India’s cybercrime landscape
The report highlights that financial fraud accounts for 85 percent of cases reported on the National Cybercrime Reporting Portal. UPI frauds, QR code scams and SIM swaps are the most common. The committee has recommended real-time monitoring across banks, stricter KYC norms for SIM issuance and simple awareness campaigns for rural and small-town users.
Victims lack adequate support
The panel stressed the severe impact of crimes such as sextortion, cyberstalking, bullying and deepfake exploitation, particularly on women and children. It has called for victim support centres offering counselling, legal aid and faster takedowns of morphed content, with intermediaries required to act within 10 hours of a complaint.
Cross-border scam networks are rising
The report also raised concerns over Indian youth being trafficked to scam centres in Southeast Asia, where they are forced into crypto frauds and extortion. It urged stronger cyber diplomacy, data-sharing treaties and strict action against fake job rackets exploiting unemployed youth.
Erosion of digital trust
Public confidence in digital platforms is weakening, with the elderly and small businesses moving back to cash after repeated UPI frauds. Parents are also hesitant to use online learning platforms due to inappropriate or fake content. The committee has recommended strengthening the cybercrime helpline 1930, holding banks accountable for delays, and building cybersecurity into all government digital services.
Emerging threats and regulation
The panel warned that cybercrime is becoming a service industry, with ransomware kits, phishing tools and deepfake generators available for sale. It called for AI regulation, regular cloud audits and digital ethics education to create a cyber-aware workforce.
Concerns over free speech
Some opposition members, however, have cautioned that the committee’s proposals could lead to overregulation and restrictions on free expression. They argued that undefined terms and wide powers for intermediaries and law enforcement could be misused against journalists, critics or satirists. The recent dispute over the government’s Sahyog portal for takedown requests, which some platforms criticised as excessive, was cited as a warning example.
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