Big Tech Asked to Explain Fraud Controls as India Reports ₹22,495 Crore in Cybercrime Losses

The420.in Staff
5 Min Read

The Parliamentary Standing Committee on Communications and Information Technology has raised serious concerns over the accountability of major technology companies in tackling cybercrime, online investment fraud, and harmful digital content. During a meeting with representatives of Google, Meta, X, and YouTube, the committee questioned whether the existing regulatory framework adequately holds digital platforms accountable for preventing large-scale online harm and cyber-enabled crimes. The companies have been asked to provide evidence-based responses to several key issues, while unanswered questions are to be addressed through written submissions within ten days.

Committee Chairman Nishikant Dubey said that as digital platforms become increasingly integral to communication, commerce, governance, and everyday life, their legal and social responsibilities have also expanded significantly. He emphasized that effective regulation of digital platforms is no longer merely a technological issue but a matter directly linked to public safety, economic security, and public trust.

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The committee expressed particular concern over the sharp rise in cyber fraud across the country. According to official data presented during the meeting, India recorded nearly 2.815 million cybercrime complaints in 2025, resulting in estimated financial losses of approximately ₹22,495 crore. Investment fraud accounted for more than 75 percent of these losses, amounting to nearly ₹16,800 crore, making it the single largest category of cyber-enabled financial crime.

Members also questioned why major digital platforms do not report fraud-related cases as a separate category in their monthly compliance reports. The committee observed that the lack of transparency raises concerns about whether platforms are adequately disclosing the true scale of cyber fraud on their services. During the discussions, it was noted that one platform reported taking action against more than 7.2 million Indian accounts in a single month but did not specify the reasons for those actions. Another platform reportedly classified nearly 92 percent of user complaints under a broad “Other” category, limiting public visibility into the nature of reported issues.

The committee also referred to data from Hyderabad City Police, which showed that 2,367 cybercrime cases linked to Meta platforms were registered between 2024 and mid-2026. Nearly 90 percent of those cases involved WhatsApp, while almost two-thirds related to fraudulent investment schemes. Investigators also highlighted three fake trading applications that allegedly caused financial losses of around ₹48.87 lakh.

During the meeting, the committee sought clarification on whether complaints filed through the National Cybercrime Reporting Portal (NCRP) should be forwarded directly to digital platforms, the maximum acceptable response time for removing fraudulent investment advertisements, and whether trading applications that fail regulatory scrutiny by the Securities and Exchange Board of India (SEBI) should automatically be barred from advertising. It also asked platforms to explain how repeat fraudulent advertisers are identified, monitored, and permanently blocked.

The committee described the temporary removal of Prime Minister Narendra Modi’s official Facebook post related to the NEET examination as a matter of serious concern rather than a mere technical error. It sought a detailed timeline explaining how the post was reported, removed, and subsequently restored, along with public explanations regarding content moderation decisions and details of the actions taken on user reports. Members also requested information on safeguards designed to protect emergency government communications from erroneous moderation.

The panel further expressed concern over issues related to Child Sexual Abuse Material (CSAM). Referring to an international media investigation, members questioned how advertisements allegedly directing users to such content could have passed internal review systems. The committee sought detailed information on the number of such advertisements detected in India and globally, disciplinary measures taken, technological improvements implemented, and preventive mechanisms introduced to ensure similar incidents do not recur.

The committee also discussed the legal responsibilities of digital intermediaries under Sections 79(3)(b) and 69A of the Information Technology Act. It further examined compliance with the amended Information Technology Rules, effective from February 10, 2026, particularly regarding the monitoring of AI-generated content, prevention of deepfake investment scams, clear labeling of deceptive content, visibility of official fact-checks, and independent audits of AI moderation systems. The committee emphasized that digital platforms must strengthen transparency, accountability, and cybersecurity safeguards to better protect users and maintain trust in India’s digital ecosystem.

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