“Rs 7,647 Crore Frozen Since April 2021, But Govt Recovers Only 2% from Cyber Fraud”

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

The government has blocked Rs 7,647 crore from reaching cybercriminals since April 2021, but only Rs 167 crore — around 2.18% of the Rs 52,969 crore reported stolen in online fraud between April 2021 and November 2025 — has been restored to victims, according to an official document accessed by News18.

Focus on Genuine Cases

To protect innocent account holders, the Centre has directed law enforcement agencies to ensure only verified complaints are escalated for financial intervention. Mistaken account freezes can disrupt salaries, business operations, and essential payments.

The Standard Operating Procedure (SOP) under the National Cybercrime Reporting Portal (NCRP) and Citizen Financial Cyber Fraud Reporting and Management System (CFCFRMS) emphasizes tighter scrutiny to prevent unwarranted freezing of accounts and ensure accountability.

Faster Action Through Bank Integration

Banks are being urged to integrate APIs with the NCRP, enabling quicker “put-on-hold” action on suspected fraud proceeds. This is designed to stop money moving rapidly across accounts and improve coordination between banks, police, payment operators, and merchants.

Structured Grievance Redress

The SOP includes a grievance mechanism for account holders whose funds were wrongly frozen. Complaints can be verified through video conferencing, avoiding repeated physical visits. Escalation procedures up to district and state-level grievance officers ensure accountability and faster resolution.

Bridging the Gap Between Blocking and Recovery

While the system has successfully prevented large sums from reaching fraudsters, the SOP signals a push to improve recovery rates. Legal and operational steps are being streamlined to ensure victims’ funds are returned quickly, while due process is maintained for suspected beneficiaries.

Officials say the goal is to strike a balance: act swiftly against cybercriminals while minimizing disruption to innocent citizens, especially amid the rise of fraud in UPI, internet banking, e-commerce, wallets, and impersonation scams.