Cyber fraud: Rs 5,474 crore lost in Karnataka, only 11% recovered

Belagavi: Citizens in Karnataka lost a staggering Rs 5,474 crore to cyber frauds, including online betting, in the last three years and the police have managed to recover Rs 627 crore, Home Minister G Parameshwara told the Assembly on Tuesday. 

Parameshwara was replying to a question by Sakleshpur BJP MLA Cement Manju on persons aged 16-35 falling for online betting games. 

Between 2023 and 2025 (up to November 15), Karnataka reported 57,733 cases of cyber frauds. The police have cracked 10,717 of the reported cases, Parameshwara said. 

“In 2023, there were 22,255 cases, people lost Rs 873 crore and we recovered Rs 177 crore. In 2024, there were 22,478 cases, Rs 2,562 crore was lost and we got back Rs 323 crore. Investigations are on and more money may be recovered. In 2025, there have been 13,000 cases with Rs 2,038 crore lost and we’ve recovered Rs 127 crore so far,” Parameshwara said. 

“While the number of cases has decreased -- from 22,000 to 13,000 -- the amount of money lost is Rs 2,038 crore,” Parameshwara pointed out. 

Parameshwara said Karnataka was the first Indian state to create a cyber vertical headed by a director-general of police. “We have 43 cyber police stations with a cyber command. This is helping, going by the fall in case numbers,” the minister said. 

In 2021, the previous BJP government amended the Karnataka Police Act to prohibit online games. This was struck down by the High Court in 2022 based on a petition by the All India Gaming Federation. The government has challenged this before the Supreme Court.

“The case is listed on December 19,” Parameshwara said. “The Centre, too, brought a law against online gaming. This was also challenged by the gaming federation,” he said, expressing concerns that youngsters were taking to online betting games.