Recoveries in Karnataka's cybercrime prosecutions are falling even as authorities ramp up specialized policing capability, reflecting how criminals are changing tactics faster than enforcement can counteract. Data from the State Legislature show that citizens lost ₹5,473.97 crore in 57,733 incidents of cybercrime over the last three years, with recoveries amounting to only approximately 11.5% of the total value, underlining the fraught nature of tracking and refunding monies once they leave a victim's account.
The Home Minister, G. Parameshwara, told the Legislature that Karnataka has risen to meet this challenge by forming focused cybercrime capacity with a total of 43 Cybercrime Economic and Narcotics (CEN) police stations around the state, along with a cyber command centre. Senior leadership has also been appointed at the state level to drive cyber investigations, which will further accelerate response times, ensure better coordination with banking institutions, and enhance technical capabilities.
Notwithstanding these efforts, the minister acknowledged a critical gap: while the number of cases reported in 2025 (up to November 15) has declined, “there has been no significant difference in the money lost,” which suggests that the incidents are fewer but larger and better organized. Annual figures mirror both the scale of losses and the recovery challenge: in 2023, losses stood at ₹873 crore with ₹177 crore recovered; in 2024, losses jumped to ₹2,562 crore with ₹323 crore recovered; and in 2025, up to November 15, losses have been ₹2,038 crore, of which ₹127 crore has so far been recovered.
According to investigators, the reason behind the decline in the number of recoveries is due to a shift in the way scammers operate—the rapid transfer of money from a network of accounts across international borders, making it difficult for law enforcement and banks to recover these amounts. At the same time, law enforcement agencies have also pointed out a shift in the type of fraud. For instance, “digital arrest” and stock investment fraud may take several hours or even days to commit.
During the discussion in the House, the need for speed in reporting incidents is clearly highlighted. In the discussion, one legislator cited the risk that waiting to register the complaint can equate to the loss of those “crucial moments” necessary to halt the transaction transfers.
