India Faces Cybercrime Losses of ₹20000 Crore by 2025
India is poised to experience staggering financial losses of approximately ₹20,000 crore due to cybercrimes by 2025, according to a recent report from cybersecurity firm CloudSEK. The report highlights that brand abuse, phishing scams, and fake domains will be the primary methods employed by cybercriminals this year. Despite advancements in technologies like artificial intelligence, attackers are expected to rely heavily on sophisticated social engineering tactics to execute their fraudulent schemes.
Brand Abuse and Fake Domains: Major Threats Ahead
CloudSEK’s white paper, released on Friday, outlines the potential economic impact of cybercrime in India, estimating that brand name abuse alone could account for losses of ₹9,000 crore. The firm defines brand abuse as the unauthorized use of trusted brand identities for fraudulent activities, which has become a significant avenue for cybercriminals to exploit unsuspecting victims.
In addition to brand impersonation, the report warns that attackers may also utilize fraudulent mobile applications and fake website domains to deceive individuals. A sector-wise analysis reveals that the financial sector could bear the brunt of these losses, with an estimated 41 percent, or ₹8,200 crore, attributed to this area. The retail and e-commerce sectors are projected to suffer a combined 29 percent of the total losses, while government services may account for another 17 percent, translating to ₹3,400 crore.
The findings are based on data collected from 200 organizations, which includes over 5,000 domain takedowns and 16,000 incidents of brand-related cyber threats. Additionally, the report references official statistics from the Indian Cyber Crime Coordination Centre (14C), indicating that the country incurred losses of approximately ₹11,333 crore in the first nine months of 2024. The number of incidents is expected to rise significantly this year.
Impact on Businesses and Individuals
The report emphasizes that businesses will face severe repercussions from these cybercrimes, incurring reputational damage as criminals exploit their names for fraudulent purposes. Companies may face costs of around ₹6,000 crore related to remediation, legal fees, customer compensation, and enhancements to security infrastructure.
However, individuals are projected to bear the brunt of these financial losses, with estimates suggesting that personal losses could reach nearly ₹14,000 crore by 2025. Cybercriminals are expected to employ tactics such as phishing scams, fake job postings, and investment frauds to target unsuspecting individuals, further exacerbating the financial impact of cybercrime in the country.
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