Once celebrated as India’s IT capital, Bengaluru is now battling a grim side effect of its digital boom — a surge in cybercrime. In just the first eight months of 2024, residents of the city lost a staggering ₹1,242.7 crore to cyber fraud, with the overall state tally crossing ₹2,915 crore.
That’s an average loss of nearly ₹8 crore every single day.
According to recent cybersecurity reports, Karnataka has emerged as one of India’s top hotspots for digital attacks. From online banking scams to ransomware strikes, cybercriminals are deploying a range of tactics targeting both individuals and institutions.
Worryingly, experts note that as larger corporations improve their defenses, hackers are shifting focus to smaller towns and vulnerable government departments.
Healthcare, Finance, and Hospitality: Top Targets
A new national study revealed that healthcare (21.8%), hospitality (19.6%), and the banking & finance sectors (17.4%) faced the highest number of cyber-attacks in India — a pattern mirrored in Karnataka.
For instance, a cyberattack on a group of 12 private nursing homes in Bengaluru last November crippled their operations overnight. Attackers planted malware that encrypted patient records, billing systems, and critical data, demanding hefty ransoms in return for restoring access.
In another alarming case, hackers exploited vulnerabilities in a popular loan app to alter repayment details, redirecting funds without detection.
Government systems, too, haven’t been spared. A notorious hacker known as “Sriki” reportedly lurked inside a key state e-governance portal for nearly four months before detection — raising concerns about undetected long-term intrusions.
Cracks in Karnataka’s Cyber Defenses
Until recently, Karnataka lacked a dedicated, state-specific cybersecurity policy, relying instead on broad national frameworks. As a result, critical state departments, including police stations and municipal bodies, often had outdated digital infrastructure and minimal cyber awareness.
Officials admit that basic digital hygiene — such as vetting email attachments, monitoring software updates, and restricting USB device use — was often overlooked. Moreover, many government data centers operated without routine security audits, leaving them open to breaches.
Cybersecurity experts also highlight a lack of trained incident response teams in smaller cities and towns, making coordinated attacks even more devastating.
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New Policies, Training Drives, and a Glimmer of Hope
In a bid to control the situation, the Karnataka government introduced a new Cyber Security Policy in August 2024. The plan includes setting up a high-level cybercrime cell headed by a Director General of Police (DGP), creating public-private cybersecurity partnerships, and offering regular training for government staff.
Since 2019, a dedicated Cybercrime Investigation Training Institute has trained over 46,000 police officers, prosecutors, and judges. The state is also preparing to launch a Cyber Command Unit with a Quick Response Team (QRT) for handling high-risk cases swiftly.
Furthermore, authorities are working closely with payment gateways, digital platforms, and telecom providers to create early warning systems for suspicious online activity.
While these steps mark important progress, experts caution that rebuilding public trust will take time. A cyber expert based in Bengaluru remarked, “Karnataka’s digital future depends not just on having policies, but on making sure every department and citizen follows them diligently.”