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Karnataka’s Cybercrime Losses Soar as Scam Recoveries Plunge

 

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.

Crimes Extorting Ransoms by Manipulating Online Photos

 


It is estimated that there are more than 1,000 sophisticated virtual kidnapping scams being perpetrated right now, prompting fresh warnings from the FBI, as criminals are increasingly using facial recognition software to create photos, videos, and sound files designed to fool victims into believing that their loved ones are in immediate danger. 

As a result of increasing difficulty in distinguishing authentic content from digital manipulation, fraudsters are now blending stolen images with hyper-realistic artificial intelligence tools to fabricate convincing evidence of abductions, exploiting the growing difficulty of distinguishing authentic content from digital manipulation in the current era.

It is quite common for victims to be notified via text message that a family member had been kidnapped and that escalating threats demand that an immediate ransom be paid. 

A scammer often delivers what appears to be genuine images of the supposed victim when the victim requests proof, often sent through disappearing messages so that the fake identity cannot be inspected. This evolving approach, according to the FBI, represents a troubling escalation of extortion campaigns, one that takes advantage of panic as well as the blurred line between real and fake identity as it relates to digital identities. 

The FBI has released a public service announcement stating that criminals are increasingly manipulating photos from social media to manufacture convincing "proof-of-life" materials for use in virtual kidnapping schemes based on photos taken from social media and other open sources. As a rule, offenders contact victims by text, claim to have abducted their loved ones, and request an immediate payment while simultaneously using threats of violence as a way to heighten fear. 

It has been reported that scammers often alter photos or generate videos using Artificial Intelligence that appear authentic at first glance, but when compared to verified images of the supposed victim, inconsistencies are revealed—such as missing tattoos, incorrect scars, or distorted facial or body proportions—and thus make the images appear authentic. 

Often, counterfeit materials are sent out through disappearing message features so that careful analysis is limited. As part of the PSA, malicious actors often exploit emotionally charged situations, such as public searches for missing persons, by posing as credible witnesses or supplying fabricated information. Several tips from the FBI have been offered by the FBI to help individuals reduce vulnerability in the event of a cyber incident. 

The FBI advises people to be cautious when posting personal images online, avoid giving sensitive information to strangers, and develop a private verification method - like a family code word - for communication during times of crisis. When faced with ransom demands, the agency advises anyone targeted to do so to remain calm, take a photo or a message of the purported victim, and attempt to contact the purported victim directly before responding to the demand. 

As a result of recent incidents shared by investigators and cybersecurity analysts, it has become increasingly apparent just how convincing it is for criminals to exploit both human emotions and new technological advances to create schemes that blur the line between reality and fiction. 

A Florida woman was defrauded of $15,000 after receiving a phone call from scammers in which the voice of her daughter was cloned by artificial intelligence and asked for help. There was a separate case where parents almost became victims of the same scheme, when they were approached by criminals who impersonated their son and claimed that he was involved in a car accident and needed immediate assistance in order to recover from that situation. 

However, the similarities and differences between these situations reflect a wider pattern: fraud operations are becoming increasingly sophisticated, impersonating the sounds, appearances, and behaviors of loved ones with alarming accuracy, causing families to make hasty decisions under the pressure of fear and confusion, which pushes the victim into making hasty decisions. Experts have stressed that vigilance must go beyond just basic precautions as these tactics evolve. 

There is a recommendation to limit the amount of personal information you share on social media, especially travel plans, identifying information or real-time location updates, and to review your privacy settings to restrict access to trusted contacts. 

In addition, families should be encouraged to establish a private verification word or phrase that will help them verify their identity when in an emergency, and to try to reach out to the alleged victim through a separate device before taking any action at all. There are many ways in which people can minimize our exposure to cybercriminals, including maintaining strong, unique passwords, using reputable password managers, and securing all our devices with reliable security software. 

The authorities emphasize that it is imperative that peopl resist the urgency created by these scams; slowing down, verifying claims, documenting communications and involving law enforcement are crucial steps in preventing financial and emotional harm caused by these scams. 

According to the investigators, even though public awareness of digital threats is on the rise, meaningful security depends on converting that awareness into deliberate, consistent precautions. Despite the fact that it has yet to be widely spread, the investigation notes that the scheme has been around for several years and early reports surfacing in outlets such as The Guardian much before the latest warnings were issued.

Despite the rapid advancement of generative AI tools, experts say that what has changed is that these tactics have become much easier to implement and more convincing, prompting the FBI to re-issue a new alert. As the FBI points out, the fabricated images and videos used in these schemes are rarely flawless, and when one carefully examines them, one can often find evidence that they are manipulated, such as missing tattoos, altered scars, and subtle distortions in the proportions of the body.

A scammer who is aware of these vulnerabilities will often send the material using timed or disappearing message features, so that a victim cannot carefully examine the content before it disappears, making it very difficult for him or her to avoid being duped. 

In this PSA, it is stressed that it is crucial to maintain good digital hygiene to prevent such scams from occurring: limiting personal imagery shared online, being cautious when giving out personal information while traveling, and establishing a private family code word for verifying the identity of a loved one in an emergency. Before considering any financial response, the FBI advises potential targets to take a moment to attempt to speak directly to the supposedly endangered family member. 

In an era when these threats are being constantly tracked by law enforcement and cybersecurity experts, they are cautioning that the responsibility for prevention has increasingly fallen on the public and their proactive habits. 

By strengthening digital literacy—such as learning how to recognize subtle signs of synthetic media, identifying messages that are intended to provoke fear, and maintaining regular communication routines within the family people can provide powerful layers of protection against cybercrime. Moreover, online experts recommend that people diversify their online presence by not using the same profile photograph on every platform they use and by reviewing their social media archives for any old posts that may inadvertently expose personal patterns or personal relationships.

There are many ways in which communities can contribute to cybersafety, including sharing verified information, reporting suspicious events quickly, and encouraging open discussion about online safety among children, parents, and elderly relatives who are often targeted as a result of their trust in technology or lack of familiarity with it. 

Despite the troubling news of the FBI's warning regarding digital extortion, it also suggests that a clear path to reducing the impact and reach of these emotionally exploitative schemes can be found if people remain vigilant, behave thoughtfully online, and keep ourselves aware of our surroundings.

Digital Deception Drives a Sophisticated Era of Cybercrime


 

Digital technology is becoming more and more pervasive in the everyday lives, but a whole new spectrum of threats is quietly emerging behind the curtain, quietly advancing beneath the surface of routine online behavior. 

A wide range of cybercriminals are leveraging an ever-expanding toolkit to take advantage of the emotional manipulation embedded in deepfake videos, online betting platforms, harmful games and romance scams, as well as sophisticated phishing schemes and zero-day exploits to infiltrate not only devices, but the habits and vulnerabilities of the users as well. 

Google's preferred sources have long stressed the importance of understanding how attackers attack, which is the first line of defence for any organization. The Cyberabad Police was the latest agency to extend an alert to households, which adds an additional urgency to this issue. 

According to the authorities' advisory, Caught in the Digital Web Vigilance is the Only Shield, it is clear criminals are not forcing themselves into homes anymore, rather they are slipping silently through mobile screens, influencing children, youth, and families with manipulative content that shapes their behaviors, disrupts their mental well-being, and undermines society at large. 

There is no doubt that digital hygiene has become an integral part of modern cybercrime and is not an optional thing anymore, but rather a necessary necessity in an era where deception has become a key weapon. 

Approximately 60% of breaches now have been linked to human behavior, according to Verizon Business Business 2025 Data Breach Investigations Report (DBIR). These findings reinforce how human behavior remains intimately connected with cyber risk. Throughout the report, social engineering techniques such as phishing and pretexting, as well as other forms of social engineering, are being adapted across geographies, industries, and organizational scales as users have a tendency to rely on seemingly harmless digital interactions on a daily basis. 

DBIR finds that cybercriminals are increasingly posing as trusted entities, exploiting familiar touchpoints like parcel delivery alerts or password reset prompts, knowing that these everyday notifications naturally encourage a quick click, exploiting the fact that these everyday notifications naturally invite a quick click. 

In addition, the findings of the DBIR report demonstrate how these once-basic tricks have been turned into sophisticated deception architectures where the web itself has become a weapon. With the advent of fake software updates, which mimic the look and feel of legitimate pop-ups, and links that appear to be embedded in trusted vendor newsletters may quietly redirect users to compromised websites, this has become one of the most alarming developments. 

It has been found that attackers are coaxing individuals into pasting malicious commands into the enterprise system, turning essential workplace tools into self-destructive devices. In recent years, infected attachments and rogue sites have been masquerading as legitimate webpages, cloaking attacks behind the façade of security, even long-standing security tools that are being repurposed; verification prompts and "prove you are human" checkpoints are being manipulated to funnel users towards infected attachments and malicious websites. 

A number of Phishing-as-a-Service platforms are available for the purpose of stealing credentials in a more precise and sophisticated manner, and cybercriminals are now intentionally harvesting Multi-Factor Authentication data based on targeted campaigns that target specific sectors, further expanding the scope of credential theft. 

In the resulting threat landscape, security itself is frequently used as camouflage, and the strength of the defensive systems is only as strong as the amount of trust that users place in the screens before them. It is important to point out that even as cyberattack techniques become more sophisticated, experts contend that the fundamentals of security remain unchanged: a company or individual cannot be effectively protected against a cyberattack without understanding their own vulnerabilities. 

The industry continues to emphasise the importance of improving visibility, reducing the digital attack surface, and adopting best practices in order to stay ahead of an expanding number of increasingly adaptive adversaries; however, the risks extend far beyond the corporate perimeter. There has been a growing body of research from Cybersecurity Experts United that found that 62% of home burglaries have been associated with personal information posted online that led to successful break-ins, underscoring that digital behaviour now directly influences physical security. 

A deeper layer to these crimes is the psychological impact that they have on victims, ranging from persistent anxiety to long-term trauma. In addition, studies reveal oversharing on social media is now a key enabler for modern burglars, with 78% of those who confess to breaching homeowner's privacy admitting to mining publicly available posts for clues about travel plans, property layouts, and periods of absence from the home. 

It has been reported that houses mentioned in travel-related updates are 35% more likely to be targeted as a result, and that burglaries that take place during vacation are more common in areas where social media usage is high; notably, it has been noted that a substantial percentage of these incidents involve women who publicly announced their travel plans online. It has become increasingly apparent that this convergence of online exposure and real-world harm also has a reverberating effect in many other areas. 

Fraudulent transactions, identity theft, and cyber enabled scams frequently spill over into physical crimes such as robbery and assault, which security specialists predict will only become more severe if awareness campaigns and behavioral measures are not put in place to combat it. The increase in digital connectivity has highlighted the importance of comprehensive protective measures ranging from security precautions at home during travel to proper management of online identities to combat the growing number of online crimes and their consequences on a real-world basis. 

The line between physical and digital worlds is becoming increasingly blurred as security experts warn, and so resilience will become as important as technological safeguards in terms of resilience. As cybercrime evolves with increasingly complex tactics-whether it is subtle manipulation, data theft, or the exploitation of online habits, which expose homes and families-the need for greater public awareness and more informed organizational responses grows increasingly. 

A number of authorities emphasize that reducing risk is not a matter of isolating isolated measures but of adopting a holistic security mindset. This means limiting what we share, questioning what we click on, and strengthening the security systems that protect both our networks as well as our everyday lives. Especially in a time when criminals increasingly weaponize trust, information and routine behavior, collective vigilance may be our strongest defensive strategy in an age in which criminals are weaponizing trust and information.

India's Digital Rise Sees Alarming Surge in Online Scams Targeting the Elderly

 

With India advancing in the digital landscape, the country is also witnessing a concerning rise in online scams. In recent months, thousands of individuals have lost substantial sums to these cyber criminals, either hoping to earn more money or after being threatened. Scammers employ new tricks, targeting people across all age groups, with a notable increase in elderly victims. Cyber criminals use increasingly sophisticated techniques to exploit the vulnerability and trust of senior citizens, causing significant financial and emotional distress.

In one case from Bengaluru, a 77-year-old woman named Lakshmi Shivakumar lost Rs 1.2 crore to a scam. It began with a call from someone posing as a Telecom Department representative, falsely claiming a SIM card in her name was involved in illegal activities in Mumbai. The caller mentioned a complaint with the Mumbai Crime Branch to add credibility.

Within hours, she received another call from individuals impersonating Mumbai Crime Branch officers, accusing her of laundering Rs 60 crore and demanding her bank account details for verification. Using threats of arrest and showing a fabricated FIR and arrest warrant, the scammers coerced her into sharing her bank details, ultimately transferring Rs 1.28 crore from her account, promising the money's return after the investigation.

In another case from Chandigarh, an elderly woman was deceived out of Rs 72 lakh under the pretense of a digital arrest scam. She received a call from someone claiming to be from the Central Bureau of Investigation (CBI) office in Andheri, Mumbai, falsely implicating her in a drug case connected to a man named Naresh Goyal and threatening to freeze her bank accounts.

The scammer linked her ATM card to the suspect and claimed obscene messages from her phone were circulating. Under immense pressure, she complied with the demands, participating in a video call where a fake police ID was shown. Over a week, the scammers defrauded her of Rs 72 lakh, promising to return the money after proving her innocence.

Older people are particularly vulnerable to such scams due to several reasons. They often struggle to keep up with the latest technology and digital security measures, making them easy targets for tech-savvy criminals. Additionally, older adults are more likely to trust authoritative figures and may not recognize the signs of deceit in official-looking communications. Their financial stability and natural inclination to trust and cooperate with law enforcement further increase their susceptibility.

How to stay safe and protect the elderly from scams

To protect the elderly from falling prey to such scams, awareness and vigilance are crucial. Here are some essential tips:

  • Inform elderly family members about common types of scams and the tactics used by fraudsters. Regular discussions can help them recognize and avoid potential threats.
  • Encourage seniors to verify any unsolicited calls or messages by contacting the official organization directly using known contact details, not the ones provided by the caller.
  • Ensure that devices used by the elderly have updated security software to protect against malware.

Double-Scam Alert: How Fraudsters Exploit Scam Victims Twice

Double-Scam Alert: How Fraudsters Exploit Scam Victims Twice

The ACCC (Australian Competition and Consumer Commission) has cautioned that scammers are approaching victims with false offers to assist them in recovering from scams. 

Scammers and Fake Recovery Offers

The National Anti-Scam Centre warns Australians who have had their money stolen by scammers to be wary of offers to recover it for an upfront charge.

The ACCC cautioned that scammers are targeting victims of scams with schemes that demand an upfront charge to recover funds lost in previous scams.

The ACCC advisory said “Reports that involve a money recovery element are on the rise. Between December 2023 and May 2024, Scamwatch received 158 reports with total losses of over $2.9 million, including losses from the original scam. The number of reports increased by 129 percent compared to the six months prior, however, financial losses decreased by 29 percent from $4.1 million.”

Victims of prior frauds are easily identifiable by thieves, who frequently retain and sell information about those they have abused. Australians 65 and over were the largest reporting category, with the highest average losses.

The Double-Scam Strategy

  • Initial Scam: Victims fall prey to an initial scam—whether it’s a romance scam, investment fraud, or phishing attack. They lose money, personal information, or both.
  • Enter the “Recovery” Scammers: Seemingly out of the blue, victims receive unsolicited calls or emails from individuals claiming to be fund recovery experts. These scammers promise to help victims retrieve their lost funds—for a fee..
  • The Catch: Victims are asked to pay an upfront fee or a percentage of the recovered amount. Desperate to recoup their losses, some victims comply.

Authorities are concerned about re-victimization, which can aggravate the financial and emotional suffering caused by scams.

Red Flags

1. Unsolicited Contact: Legitimate recovery services don’t cold-call or email victims. Be wary if someone reaches out to you unexpectedly.

2. Upfront Fees: Legitimate recovery services typically work on a no-win, no-fee basis. If someone demands payment upfront, it’s a red flag.

3. Pressure Tactics: Scammers use urgency and fear to manipulate victims. They might claim that time is running out or that they need immediate payment.

4. Requests for Personal Information: Scammers often ask for personal details under the guise of verifying your identity. Be cautious about sharing sensitive information.

Accounts on Payoneer in Argentina Compromised in 2FA Bypass Incidents

 

A significant number of Payoneer users in Argentina have reported unauthorized access to their 2FA-protected accounts, resulting in the theft of funds while they were asleep. Payoneer, a financial services platform facilitating online money transfer and digital payments, is particularly popular in Argentina for its ability to enable earnings in foreign currencies without adhering to local banking regulations.

Starting last weekend, users with 2FA-protected accounts experienced sudden loss of access or discovered empty wallets upon login, with losses ranging from $5,000 to $60,000. Prior to the incidents, victims received SMS messages requesting approval for a password reset on Payoneer, which they did not authorize. Some users claim they did not click on the provided URLs, and a few only noticed the SMS after the funds were stolen.

The stolen funds were reportedly sent to unfamiliar email addresses using the 163.com domain. Investigations reveal that many affected users were customers of mobile service providers Movistar and Tuenti, with the majority using Movistar. Suspicions arose regarding a recent Movistar data leak, but the leaked data did not include user email addresses necessary for Payoneer password resets.

One theory suggests a breach in the SMS provider delivering OTP codes, granting threat actors access to codes sent by Payoneer. However, an official statement from Movistar denies responsibility for messages sent through its network and mentions blocking the numbers used in the smishing campaign.

Payoneer, while acknowledging the issue, has not provided specific details about the attack, attributing it to phishing and cooperating with authorities. Tech reporter Juan Brodersen received a statement from Payoneer blaming users, alleging they clicked on phishing links in SMS texts and entered login details on fraudulent pages. Affected users refute this, accusing Payoneer of deflecting responsibility and not addressing potential platform errors or vulnerabilities.

Despite Payoneer's SMS-based 2FA and password recovery process, which relies solely on SMS codes, users argue that the platform should not have had access to later OTP codes required for transactions if the attack was purely phishing-based.

The exact mechanism of the attack remains unclear, with various hypotheses under consideration. Payoneer users in Argentina are advised to withdraw funds or disable SMS-based 2FA and reset passwords until the situation is clarified.

In an update on January 20, a Payoneer spokesperson acknowledged instances of fraud where customers were lured into clicking on phishing links, leading to compromised account credentials or mobile phones. The company asserted swift action to contain fraud attempts and emphasized collaboration with regulators, mobile carriers, and law enforcement agencies. While restitution details vary, Payoneer is actively working to protect customers' funds and recover possible losses.