Rising Cyber Frauds in India: Why Cyber Insurance Is Becoming Essential for Individuals

Imagine waking up to a message that ₹50,000 has been debited from your account for a transaction you never made! This is a reality for thousands of Indians daily.

Cyber fraud in India is no longer just a headline; it is a reality knocking on our digital doors. With a staggering ₹22,845 crore lost to cybercriminals in 2024 alone, the need for protection is urgent.

​While we secure our homes and cars, our digital lives often remain exposed. This is where cyber insurance steps in, not just as a product but as a necessary shield for your hard-earned money.

​What are the Latest Cyber Fraud Cases in India?

​The landscape of cyber fraud in India is evolving rapidly. Scammers are moving beyond simple OTP thefts to sophisticated psychological manipulations. In fact, according to Live Mint, a staggering 21,77,524 cases were reported in 2025 alone.

With such an enormous number, being aware of cyber fraud in India is essential:

​Digital Arrest Scam

​Digital arrest is currently one of the most menacing forms of cyber fraud in India. In a digital scam, fraudsters impersonate law enforcement officials from agencies such as the CBI, ED, or Narcotics Bureau.

They contact you via video calls (often on WhatsApp or Skype), wearing uniforms and sitting against fake police station backdrops.

1. Scammer’s Claim: They claim your Aadhaar or bank account is linked to illegal activities. 

2. What Happens: You are then kept under digital custody. It means they force victims to stay on video call for hours or days.

3. Consequence: Lastly, scammers coerce you to transfer money to a ‘safe government account’ for verification.

​Phishing Scams

​Phishing remains a classic yet effective method for cyber fraud in India. Scammers send emails or SMS messages that look exactly like communication from your bank, Income Tax Department, or popular e-commerce sites.

1. Scammer’s Claim: They send malicious links disguised as real links, such as updating your KYC or claim a refund.

2. What Happens: Victims click on the link, thinking it is real. Scammers then steal your login information and credentials.

3. Consequence: Once you click on the link, malware installs on your device, which steals your money.

​Insurance Cyber Fraud

​As people become more aware of insurance, fraudsters have found a new way to exploit them. Victims receive calls promising huge bonuses on existing life insurance policies or claiming that a policy has lapsed and needs to be renewed.

1. Scammer’s Claim: In some reported cases in Delhi and Mumbai, scammers sold fake policies to insure the dead or terminally ill to claim benefits later.

2. What Happens: Scammers fake big insurance companies and sell you insurance plans. They then ask you to send money, often via unauthorised gateways.

3. Consequences: You buy the insurance plan, thinking that your health is now secure. You pay the premiums, but when you go to claim, you are met with nothing but a blank wall.

This type of cyber fraud in India preys on your trust in financial institutions.

​What is the Role of Cyber Insurance in Preventing Cyber Fraud in India?

​You might wonder, ‘Can insurance actually stop a crime?’ Technically, no insurance policy can prevent a hacker from targeting you. However, cyber insurance for individuals plays a critical role in preventing the financial devastation that follows.

For example, Maharashtra has the highest recorded loss in India, incurring a loss of ₹3,203 crore!

If you fall victim to cyber fraud in India, a cyber insurance policy, such as those offered by Bajaj General Insurance, steps in to cover your financial losses. It ensures that a single mistake or a sophisticated hack doesn’t wipe out your savings.

​What are the Inclusions and Exclusions of Cyber Insurance?

​Understanding your policy is vital to ensuring you are truly protected against cyber fraud in India.

Note: Before investing in any cyber insurance, make sure to read the policy documents.

How Can You Prevent Cyber Scams?

​While insurance covers the damage, prevention is always better than a cure. Here is how you can build your own firewall against cyber fraud in India:

1. ​Stop and Verify: If you receive a panic-inducing call about an arrest or a blocked card, hang up immediately. Call the official helpline of the agency or bank directly to verify the details.

2. ​Enable 2FA: Always turn on Two-Factor Authentication for your email, banking, and social media apps. It makes hacking your account difficult for scammers.

3. Never Share OTPs: No bank official or police officer will ever ask for your OTP or PIN. Therefore, if you receive any calls regarding the same, never share it.

4. ​Check URLs: Hover over suspicious links before clicking. Look for https and correct spellings in the domain name. If anything looks out of place, don’t click on it.

5. ​Invest in Protection: Use legitimate antivirus software and consider digital fraud protection plans, by Bajaj General Insurance, that offer real-time monitoring.

Although maintaining your security is paramount, it doesn’t guarantee that scammers will not hack. Therefore, to be truly secure, Bajaj General Insurance offers Individual Cyber Insurance. With this, you can rest assured knowing that your hard-earned money is not lost to an unfortunate cyber attack.

Plus, if you face such attacks, you can get cyber security assistance from the helpline 1930, according to PIB.

​Bottom Line

​The surge in cyber fraud in India is a wake-up call for every digital user. With losses crossing thousands of crores annually, relying solely on hope is risky. By staying vigilant and securing your finances with a robust cyber insurance policy, you can navigate the digital world with confidence. Don't wait for a scam to strike; secure your peace of mind today.

​FAQs

​Which city is famous for cybercrime in India?

​While Jamtara remains infamous as the classic hub, new hotspots have emerged. Bharatpur and Nuh (Mewar region) are now major centres. Additionally, metropolitan cities like Mumbai are seeing massive numbers, with over 20,000 cases reported in the last 5 years alone.

​What is the punishment for cyber fraud in India?

​Under the Information Technology Act (Sections 66C, 66D) and the new Bharatiya Nyaya Sanhita (BNS), punishment can include imprisonment up to 3 years and heavy fines. Severe offences involving critical infrastructure or terrorism can attract life imprisonment.

​Should I buy cyber insurance in India?

​Absolutely, you should buy cyber insurance in India. With cyber fraud in India rising by over 200% in 2024, the risk is higher than ever. Cyber insurance offers an affordable way to protect your savings from unauthorised transactions, identity theft, and online extortion.

​Does cyber insurance cover cyber fraud?

​Yes, cyber insurance for individuals typically covers financial losses resulting from unauthorised transactions, phishing, email spoofing, and identity theft. However, it is crucial to read the policy wording to understand specific limits and exclusions regarding negligence.

​Which insurer provides the best cyber insurance in India?

​Bajaj General Insurance is a top choice for cyber insurance in India. It offers comprehensive coverage that includes protection against identity theft, cyberstalking, and financial loss from phishing. The policies cater to the modern risks of cyber fraud in India with robust support mechanisms.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.