Indore, one of India’s fastest-expanding cities, faced an unprecedented rise in cyber fraud during 2025, with financial losses crossing ₹100 crore, according to official police data. Authorities report that more than 8,000 residents were deceived by cybercriminals over the year, highlighting how rapidly digital crime is evolving alongside India’s growing online economy.

While improved coordination and faster technical intervention helped police recover roughly 17% of the stolen funds—an improvement compared with previous years—the sheer scale of cyber fraud remains a major concern for law enforcement and policymakers.

‘Digital Arrest’ Scams Dominate Cybercrime Landscape

Police data shows that so-called “digital arrest” scams emerged as the most common and damaging form of fraud in Indore this year. In these cases, criminals impersonate officials from agencies such as the CBI, Enforcement Directorate, or cybercrime units. Victims, often senior citizens, are falsely accused of serious offences including money laundering or drug trafficking.

Fraudsters exploit fear and urgency, pressuring targets to transfer large sums of money immediately under the pretext of cooperating with an investigation. Authorities say this tactic has proven alarmingly effective, particularly against individuals unfamiliar with digital processes or legal procedures.

Fear as a Weapon, Not Just Technology

Experts warn that these scams go beyond technical deception. The Future Crime Research Foundation (FCRF) describes digital arrest fraud as a form of psychological crime that deliberately manipulates panic, authority bias, and lack of legal awareness.

With the rapid adoption of digital payments and online banking, cybercrime has become increasingly organised. Investigators point to coordinated networks involving fake call centres, mule bank accounts, forged SIM cards, and inter-state operations that make detection and prosecution far more complex.

Expert Warning on Misuse of Law Enforcement Fear

Former IPS officer and cybercrime specialist Prof. Triveni Singh has cautioned that digital arrest scams thrive on public misunderstanding of how law enforcement actually works.

“No legitimate investigation agency arrests anyone through phone or video calls,” he said, stressing that fear-driven responses allow criminals to succeed. Singh emphasized that awareness alone is not enough—authorities must dismantle mule account networks, track money trails, and eliminate fake digital identities to disrupt organised cybercrime at its core.

Police Crackdown Shows Results, But Challenges Persist

Despite the growing threat, Indore police reported significant enforcement actions in 2025. Authorities registered 72 major cybercrime cases and arrested 112 suspects. Swift response mechanisms enabled refunds of approximately ₹17.24 crore to victims.

Additional enforcement highlights include:

• Over 2,000 fake social media profiles blocked
• Around 1,200 hacked accounts restored
• More than 25,000 suspicious bank accounts frozen through the National Cyber Crime Reporting Portal
• Dozens of mobile devices and numbers linked to fraud disabled
• Over 2,100 lost or stolen phones traced and returned

Strengthening Defenses for a Digital Future

Police officials say cybercrime units will be further upgraded with advanced tools, specialised training, and expanded public awareness campaigns. Experts stress that combating cyber fraud requires joint responsibility—from law enforcement, banks, technology companies, and citizens alike.

Indore’s experience serves as a cautionary tale for urban India: as digital adoption accelerates, cybersecurity must combine strong technology, informed citizens, and coordinated institutional action to stay ahead of increasingly sophisticated criminals

Mumbai, December 30, 2025 – India’s central bank has reported a decline in the number of banking frauds in 2024–25, even as the total value involved surged, highlighting evolving risks in the country’s financial sector. The Reserve Bank of India (RBI) stressed that while fewer incidents were recorded, banks remain exposed to significant operational, reputational, and customer trust risks.

Fewer Cases, Higher Monetary Impact

In its latest Report on Trend and Progress of Banking in India 2024–25, the RBI noted a paradox: the number of reported frauds fell, but the total amount involved increased sharply. The higher value was largely attributed to the re-examination and fresh reporting of 122 legacy cases amounting to ₹18,336 crore, following a Supreme Court directive from March 27, 2023. These historic cases influenced overall figures, even as new frauds showed moderation in volume.

Private vs Public Banks: Contrasting Risk Profiles

The RBI report highlighted distinct patterns between private and state-owned banks:

• Private Banks: Card and internet-based frauds dominated by number of cases, while loan-related frauds represented the largest monetary exposure.
• Public Sector Banks: Advances-related frauds were prominent both in frequency and value.

Overall, private banks accounted for 59.3% of reported fraud cases, whereas public banks represented 70.7% of the total monetary impact.

Digital Frauds on the Rise

When analysed by the date of occurrence, digital channels accounted for the majority of fraud cases. Card and internet-based frauds constituted 66.8% of incidents, reflecting their high frequency. In contrast, advances-related frauds—primarily loans—represented 33.1% of the total value, demonstrating their higher financial scale.

The RBI noted that the rapid growth of digital transactions and new payment platforms has reshaped the fraud landscape, with small but frequent digital losses emerging as a persistent challenge.

Regulatory Measures and Technology Initiatives

To strengthen customer protection, the RBI is reviewing its 2017 instructions on limited liability in unauthorised electronic banking transactions, aiming to align guidelines with modern banking risks.

The report also highlighted technology-led measures adopted by banks:

• MuleHunter.ai: An AI tool implemented in 23 banks to detect potential mule accounts through system-wide learning.
• Digital Payments Intelligence Platform: Designed to flag high-risk transactions and enable intelligence sharing for fraud prevention.

Additionally, the RBI plans to issue unified instructions on conduct-related matters for recovery agents and loans, along with comprehensive norms on marketing, advertising, and sales practices to prevent mis-selling of financial products.

Conclusion

While the number of reported frauds has fallen, the RBI’s report underscores that evolving digital threats, legacy cases, and high-value loan frauds continue to pose serious risks. The central bank’s combined approach of regulatory updates and AI-based tools aims to protect customers and maintain the integrity of India’s banking system.

Seoul, December 29, 2025 – South Korea’s leading e-commerce platform, Coupang, has unveiled a historic compensation package worth $1.17 billion (around ₹9,700 crore) for nearly 34 million users affected by a major data breach. The settlement, offered in the form of shopping vouchers, marks one of Asia’s largest consumer relief efforts following a cybersecurity incident.

Voucher-Based Compensation

Eligible users, including former customers who had closed their accounts after the breach, will receive vouchers worth 50,000 South Korean won (approximately ₹3,100) redeemable across Coupang’s services. A dedicated portal will open on January 15 to verify accounts and distribute the vouchers.

Interim CEO Harold Rogers described the compensation as a critical step toward rebuilding user trust. “We apologize to our customers and take full responsibility for the anxiety and inconvenience caused by this incident,” Rogers stated.

Founder and CEO Respond

Coupang founder Bom Kim publicly apologized for delayed communication in the immediate aftermath of the breach. Kim admitted that waiting for complete internal verification before addressing the public was a mistake.

Earlier this month, CEO Park Dae-jun resigned amid escalating regulatory scrutiny, taking responsibility for the company’s failure to safeguard user data. Coupang said that investigations recovered the leaked customer data and digital devices belonging to the primary suspect. Only about 3,000 customer records were found on the suspect’s computer, with no evidence of data being sold or publicly shared.

Implications of the Compensation Package

The ₹9,700 crore settlement has sparked debate among analysts and cybersecurity experts:

• Could cash compensation have provided more tangible relief than vouchers?
• Is the move driven primarily by reputational and legal concerns?
• Can similar breaches be prevented despite strengthened security measures?

Voucher-based compensation, experts note, allows companies to limit immediate cash outflow while encouraging users to remain on the platform—a common strategy in large-scale breach settlements.

Security Upgrades and User Precautions

Coupang has committed to enhancing its cybersecurity infrastructure with measures including:

• Stricter internal access controls
• Real-time monitoring of employee systems
• Faster detection and response protocols
• Improved coordination with law enforcement and regulators

Affected users are advised to take immediate precautions: change passwords, enable two-factor authentication (2FA), monitor for phishing attempts, and check financial statements regularly. Cybersecurity experts warn that exposed personal data may be misused long after the initial breach.

Conclusion

Coupang’s unprecedented compensation package underscores the serious reputational and financial consequences of data breaches for digital platforms. While the vouchers demonstrate corporate accountability at scale, restoring public trust remains a significant challenge. The incident highlights the growing importance of cybersecurity as e-commerce becomes increasingly integral to daily life.