Karnataka Loses Rs 219 Crore to Digital Arrest Fraud Since 2023

Karnataka has suffered a loss of Rs 219.58 crore to ‘digital arrest’ fraud over the past three years. Learn how the scam operates, its impact, and government measures to combat it.

Executive Summary

Karnataka has incurred a total loss of Rs 219.58 crore due to digital arrest fraud cases between 2023 and 2025. The scam involves fraudsters deceiving victims into transferring money under false pretexts, exploiting fear and intimidation through video and WhatsApp calls. Authorities are working to raise awareness and curb these crimes through preventive measures and social media crackdowns.

Introduction

Digital arrest fraud is a growing cybercrime in Karnataka, where fraudsters use intimidation tactics, falsely accusing victims of involvement in money laundering or illegal drug activities. Victims are coerced into providing sensitive information such as bank account details and Aadhaar cards, resulting in financial loss.

Background and Current Landscape

According to data presented by Home Minister Dr. G Parameshwara: - In 2023: 67 cases, Rs 7.91 crore lost. - In 2024: 1,066 cases, Rs 191.55 crore lost. - In 2025 (till date): 95 victims, Rs 20.11 crore lost. Law enforcement recovered funds in 16 cases in 2023, 463 cases in 2024, and 20 cases in 2025. However, exact recovery amounts are not specified.

Modus Operandi

Fraudsters exploit video and WhatsApp calls to intimidate victims, claiming their involvement in illegal activities. They coerce victims into transferring money under the guise of verification, threatening legal consequences. Sensitive personal information is collected to facilitate further extortion.

Government Response

Authorities have initiated awareness campaigns, workshops, and training sessions to educate the public and enhance investigation techniques. Social media platforms are being monitored to identify and disable fraudulent accounts: - 268 Facebook groups - 465 Telegram groups - 15 Instagram accounts - 61 WhatsApp groups Fake SIM cards and fraudulent bank accounts used in these operations are also targeted for shutdowns.

Impact and Consequences

The digital arrest scam has caused massive financial losses across Karnataka. Victims face not only monetary loss but also stress and reputational damage due to false accusations. The rapid growth of cases highlights the need for continuous awareness and preventive measures.

Mitigation and Prevention Strategies

- Educate citizens on common online fraud tactics. - Verify unknown callers claiming legal authority. - Avoid sharing sensitive personal information over calls or messages. - Report suspicious activity immediately to authorities. - Follow official guidance and updates from government awareness campaigns.

Conclusion

Digital arrest fraud in Karnataka has surged in the past three years, causing huge financial and psychological impact. Authorities continue to combat these crimes through public awareness, social media crackdowns, and improved investigative measures. Staying informed and cautious remains critical to preventing victimization.

References

• The Indian Express, Karnataka Loses Rs 219 Crore to Digital Arrest Fraud, 2025 • Government Reports & Legislative Council Data • Cybercrime Prevention Workshops & Awareness Campaigns

Cybercrime News & Case Studies

Karnataka online trading frauds: Losses skyrocket from Rs 23 crore in 2022 to Rs 903 crore by mid-2024

Karnataka online trading frauds: Losses skyrocket from Rs 23 crore in 2022 to Rs 903 crore by mid-2024

Many educated professionals, especially Bengaluru techies, have been duped by fake broking apps promising high returns or IPO allocations. In April, Saurav Kumar saw a stock investment ad on Facebook and joined a WhatsApp group that led to a fake trading app scam.

Know More →
Investment Fraud — Udupi man loses ₹49 lakh

Investment Fraud — Udupi man loses ₹49 lakh

A 72-year-old man and his family lost ₹49 lakh in an online investment scam. They were lured via WhatsApp into transferring money for fake stock market gains. When they tried to withdraw, fraudsters demanded more.

Know More →
Karnataka loses ₹219 crore to ‘Digital Arrest’ Fraud since 2023

Karnataka loses ₹219 crore to ‘Digital Arrest’ Fraud since 2023

Karnataka has lost ₹219.58 crore to ‘digital arrest’ fraud over the past three years. Scammers pose as police officers, forcing victims to transfer money under false pretexts.

Know More →
Karnataka elderly couple loses ₹50 lakh to cyber scam, dies by suicide

Karnataka elderly couple loses ₹50 lakh to cyber scam, dies by suicide

An elderly couple in Belagavi lost over ₹50 lakh to fraudsters posing as officials. The scammers accused them of SIM misuse, forcing them to transfer funds, leading to tragic consequences.

Know More →