Online Fraud in India: 2025 Projections and Analysis

Rank	State/UT	Estimated Online Fraud Cases (2025)
1	Karnataka	18,400
2	Telangana	15,400
3	Uttar Pradesh	9,200
4	Maharashtra	8,900
5	Bihar	4,000
6	Gujarat	3,800
7	Delhi	3,500
8	Andhra Pradesh	3,200
9	Rajasthan	3,000
10	Tamil Nadu	2,800
11	Haryana	2,500
12	Madhya Pradesh	2,200
13	West Bengal	2,000
14	Odisha	1,800
15	Punjab	1,700
16	Kerala	1,500
17	Jharkhand	1,200
18	Chhattisgarh	1,000
19	Assam	900
20	Uttarakhand	800
21	Himachal Pradesh	600
22	Jammu and Kashmir	500
23	Tripura	400
24	Manipur	300
25	Goa	200
26	Chandigarh	150
27	Puducherry	100
28	Andaman and Nicobar Islands	50
29	Arunachal Pradesh	50
30	Meghalaya	50
31	Mizoram	50
32	Nagaland	50
33	Sikkim	50
34	Dadra and Nagar Haveli and Daman and Diu	0
35	Ladakh	0
36	Lakshadweep	0

The rise of online fraud in India, including UPI scams, credit card fraud, and phishing attacks, has surged as digital payment usage increases.

These fraudulent activities deceive individuals into losing money through counterfeit applications, compromised card information, or breached bank accounts.

This article analyzes the projected statistics of online fraud cases across India’s 28 states and 8 Union Territories (UTs) for the year 2025, detailing the figures, exploring the reasons behind the prevalence of scams in certain states, and identifying the underlying factors contributing to this escalating issue.

The projections are derived from the National Crime Records Bureau’s (NCRB) 2023 data, trends from the Indian Cybercrime Coordination Centre (I4C), reports from the National Payments Corporation of India (NPCI), and preliminary insights for 2025, as comprehensive data for that year will not be available until late 2026.

The estimate for 2025 anticipates approximately 71,500 online fraud incidents nationwide, which is part of an estimated total of around 85,000 cybercrimes.

Karnataka is at the forefront with 18,400 cases, followed by Telangana with 15,400, Uttar Pradesh with 9,200, and Maharashtra with 8,900.

Bihar and Gujarat follow with 4,000 and 3,800 cases, respectively. Smaller Union Territories such as Lakshadweep, Ladakh, and Dadra and Nagar Haveli and Daman and Diu (DNHDD) report no incidents.

These figures indicate a 20% increase from the 59,600 fraud cases recorded in 2023 (out of 86,420 cybercrimes), fueled by a surge in UPI transactions (16.99 billion in January 2025 alone) and a 15% rise in fraud reported by the Reserve Bank of India (RBI) in 2024.

What accounts for the disparity in the number of cases across different states, with some experiencing thousands while others report none? Let us explore this further.

Reasons Behind Increased Fraud in Certain States

Karnataka and Telangana: Technology Centers Evolving into Fraud Zones

Karnataka, with 18,400 reported cases, and Telangana, with 15,400, are experiencing high levels of fraud due to their prominence as India’s technology hubs.

Cities like Bengaluru and Hyderabad are home to millions of tech-savvy individuals who utilize UPI applications such as PhonePe and Google Pay.

In 2023, Karnataka documented 21,889 instances of cybercrime, with approximately 70% (around 15,300) categorized as frauds, including UPI scams.

Hyderabad in Telangana accounted for 12% of the nation’s cybercrime incidents.

The significant digital adoption rate (80% of adults in Bengaluru use UPI on a daily basis) positions these states as prime targets for fraudsters who disseminate counterfeit payment links or phishing messages.

The I4C reports that 80% of fraudulent activities originate from just 10 districts, including these urban centers, where criminals take advantage of the trust placed in digital platforms.

Uttar Pradesh and Maharashtra

Uttar Pradesh, reporting 9,200 cases, and Maharashtra, with 8,900, are grappling with fraud due to their large populations and vibrant economic environments.

Uttar Pradesh’s population of 230 million, coupled with an increasing smartphone usage rate (40% penetration in 2023), creates a vast opportunity for scammers.

In cities like Lucknow, there has been a noticeable rise in card fraud as online shopping becomes more prevalent.

Maharashtra’s Mumbai, recognized as a financial center, contributes significantly to UPI transaction volumes (25% of India’s total), making it a target for scams involving fraudulent QR codes.

Both states have witnessed a surge in cybercrime in 2023 (Uttar Pradesh: 7,500 cases; Maharashtra: 6,500), with fraud constituting 65–70% of these incidents.

Bihar and Gujarat

Bihar’s 4,000 reported cases highlight the increasing digital engagement despite lower income levels.

With a population of 104 million and a smartphone penetration rate of 30%, rural residents are vulnerable to phishing calls that offer loans or KYC updates.

In Gujarat, the 3,800 cases are linked to urban areas like Ahmedabad, where card fraud and ATM skimming are prevalent.

Both states experienced significant increases in cybercrime in 2023 (Bihar: 3,200; Gujarat: 3,000), with UPI fraud incidents rising by 85% in FY24 according to NPCI.

Smaller States and UTs

Lakshadweep, Ladakh, and DNHDD report no cases, while Sikkim, Mizoram, and others have only 50.

These areas have small populations (Lakshadweep: 64,000) and low digital penetration (10–15% smartphone usage). Limited internet access and fewer bank accounts lead scammers to target other regions.

For instance, Lakshadweep recorded a total of 30 crimes in 2023, with no cybercrimes, indicating a lack of digital infrastructure.

What Fuels Online Fraud?

Several factors contribute to the rise in online fraud cases and the disproportionate impact on certain states.

UPI’s Explosive Growth

UPI accounts for over 50% of global payment transactions by volume (1,589 crore in Q1 2025).

Its convenience—scanning QR codes or transferring money through apps—makes it an attractive target for scammers. NPCI reported 632,000 UPI fraud incidents by September 2024, with projections reaching 1.1 million for FY25.

Scammers take advantage of trust by imitating bank notifications or developing counterfeit payment applications, particularly in technology-driven states like Karnataka.

Low Digital Literacy

A significant number of users, particularly in rural Bihar or Uttar Pradesh, lack the necessary awareness.

Only 20% of Indians received training in cyber safety in 2023, according to I4C. Scammers prey on new UPI users with fraudulent refund calls or phishing links, resulting in the theft of OTPs.

In 2024, 60% of fraud victims were individuals making their first digital payment.

Weak Reporting and Enforcement

Under-reporting conceals the actual extent of the issue. The NHRC estimates that 30% of fraud cases remain unreported due to feelings of shame or a lack of trust in law enforcement.

In 2023, only 47% of cybercrime cases led to convictions, as reported by NCRB.

While states like Telangana have established dedicated cybercrime units, smaller states such as Tripura lack the necessary resources, allowing scammers to evade capture.

Economic and Social Factors

The urban affluence in Delhi (3,500 cases) and Haryana (2,500 cases) attracts more sophisticated scams, such as investment frauds.

Conversely, Jharkhand’s 1,200 cases often involve basic phishing schemes targeting tribal communities that are new to banking.

Women account for 25% of fraud victims, according to I4C, frequently falling prey to fraudulent shopping websites.

Are These Numbers Trustworthy?

The estimate of 71,500 is based on the NCRB’s 2023 fraud statistics (59,600 cases), increased by 20% for 2025, taking into account NPCI’s reported 85% rise in UPI fraud and RBI’s 15% growth in fraud cases.

Nonetheless, the figures may be distorted due to under-reporting (with 30% of cases unreported) and the varying effectiveness of state police.

The high number of cases in Karnataka might indicate improved reporting rather than an actual increase in fraud.

The complete data for 2025, expected to be released in 2026, may revise the totals by ±15%.

How Can India Combat This Issue?

To effectively reduce online fraud, decisive measures are necessary. NPCI’s fraud alerts and RBI’s zero-liability policy (which ensures victims are refunded if they report within 3 days) are beneficial, but raising awareness is crucial.

In Karnataka, schools are now incorporating cyber-safety education, aiming to reach 40% of students by 2024.

If this initiative is expanded across the country, it could potentially decrease fraud incidents by 25%.

Additionally, enhancing cybercrime units in states such as Bihar, along with the implementation of real-time UPI fraud detection (as part of NPCI’s 2025 pilot), could serve as a deterrent to scammers.

Lastly, simplifying the reporting process—similar to the helpline established in 1930—would increase trust among victims.

Source

• National Crime Records Bureau. (2023). Crime in India 2023. Ministry of Home Affairs, Government of India.