“Rs 7,647 Crore Blocked Since April 2021, Only 2% Recovered from Cyber Fraud: Govt”

Rs 7,647 Crore Frozen Since April 2021, But Only 2% Recovered in Cyber Fraud: Govt

Since April 2021, the government has blocked Rs 7,647 crore from reaching cybercriminals, but only Rs 167 crore — roughly 2.18% of Rs 52,969 crore reported stolen in online fraud — has been restored to victims, according to official data.

Focus on Genuine Complaints

To avoid hardship for innocent account holders, authorities have instructed law enforcement to escalate only verified complaints. Mistaken freezes can disrupt salaries, business operations, and essential payments.

This comes under the Standard Operating Procedure (SOP) of the National Cybercrime Reporting Portal (NCRP) and the Citizen Financial Cyber Fraud Reporting & Management System (CFCFRMS), which balances rapid action against fraud with safeguards for victims.

Faster “Put-on-Hold” Action

Banks are being encouraged to integrate APIs with NCRP to enable faster “put-on-hold” measures on suspected fraud proceeds. The move aims to stop money from moving quickly across accounts and strengthen coordination between banks, law enforcement, and payment operators.

Grievance Redress Mechanism

The SOP also establishes a structured grievance process. Account holders can raise complaints if funds are wrongly frozen, with verification via video conferencing. Escalation channels up to district and state-level officers ensure timely resolution.

Bridging the Gap Between Blocking and Recovery

While large sums have been frozen, actual recovery remains limited. Officials aim to streamline legal and operational steps so victims’ funds can be returned faster while maintaining due process for suspected beneficiaries.

The government’s approach seeks to hit cybercriminals quickly while protecting innocent citizens from disruption caused by mistaken account freezes, especially amid the rise of scams across UPI, internet banking, e-commerce, wallets, and impersonation fraud.