Just 2% of money lost in cyber fraud recovered: Centre
What's the story
The government has blocked ₹7,647 crore from reaching cybercriminals between April 2021 and November 2025. In the same period, ₹52,969 crore was reported stolen. However, only ₹167 crore (about 2.18% of the total amount reported stolen) has been recovered and returned to victims. According to a report by News18, the data was obtained from the operating procedure for custody and recovery of money under the National Cybercrime Reporting Portal (NCRP).
Operational changes
New procedures aim to streamline fraud response
The government has now directed law enforcement agencies to ensure only genuine complaints are escalated for financial intervention. This is to prevent unwarranted freezing of bank accounts and resulting hardships. The new procedures under NCRP and the Citizen Financial Cyber Fraud Reporting and Management System (CFCFRMS) aim to strike a balance between quick action against cyber fraud and safeguards for victims.
System integration
Banks urged to integrate APIs for faster response
To strengthen real-time response to cyber-enabled financial fraud, banks are being urged to integrate Application Programming Interfaces (APIs) with NCRP. This would allow quicker "put-on-hold" action on suspected proceeds of fraud and smoother coordination with police and financial intermediaries. The aim is to reduce delays that often allow money to move across multiple accounts within minutes, complicating recovery efforts.
Redress system
Grievance redress mechanism outlined for account holders
The SOP also outlines a structured grievance redress mechanism for cases where account holders claim funds were wrongly held or accounts frozen without a valid connection to suspected fraud. Account holders can approach banks to raise grievances, with investigating officers expected to verify claims, preferably through video conferencing, to avoid repeated physical visits and delays. If grievances are not addressed within prescribed timelines, escalation mechanisms up to district and state-level grievance officers are laid down.
Recovery focus
Government's efforts to improve recovery and reduce litigation
The government's system has been successful in preventing fraudulent proceeds from being siphoned off. However, the SOP indicates a policy push to improve recovery for victims by streamlining legal and operational steps for interim custody and funds release. Officials said the aim is to reduce avoidable litigation and procedural bottlenecks so that when victims' funds are clearly traced and held, they can be returned faster.