New Delhi | December 1, 2025: A sharp surge in online fraud and sophisticated cyberattacks has prompted the government to consider a more stringent cybersecurity framework in the upcoming FY27 Union Budget. According to senior officials, the new provisions may specifically target emerging threats such as AI-powered fraud, digital arrests, and airline-ticket spoofing, which have escalated rapidly over the last two years. A senior government official said the Centre is working on building a “future-ready cybersecurity ecosystem.”
The official noted, “Digital arrests, airline spoofing, and AI-enabled fraud schemes are rising at an alarming pace. While existing laws provide a broad framework, there is now a clear need for new policies and focused safeguards. Inter-ministerial consultations on this are already underway.”
Cyber incidents doubled between 2022 and 2024
Government data highlights the scale of the challenge: reported cybersecurity incidents in India surged from 10.29 lakh in 2022 to 22.68 lakh in 2024, reflecting a 100% jump in just two years.
Experts believe the rapid evolution of AI has dramatically altered the nature of cybercrime. Deepfake calls, social-media-based fraud, impersonation attacks and identity-theft scams are becoming increasingly common, placing greater pressure on enforcement agencies and regulators.
Fresh data from the National Cyber Crime Reporting Portal (NCRP) shows that as of February 28, 2025, cyber-fraud complaints accounted for ₹36.45 lakh in reported losses. The real figure, according to officials, could be significantly higher as many victims do not file complaints.
Digital arrests and airline-ticket scams trigger fresh alarm
Among the fastest growing threats are digital arrest scams, where fraudsters impersonate law-enforcement officers over video calls to extort money. These incidents have seen a steep rise across states over the past few months. Similarly, the proliferation of airline-ticket scams involving fake customer-care numbers and counterfeit booking/refund websites has become a major source of financial fraud.
While laws such as the Information Technology Act, 2000 and provisions under the Bharatiya Nyaya Sanhita, 2023 cover cybercrime, senior officials acknowledge that they may be insufficient against fast-evolving, AI-assisted fraud mechanisms. There is growing consensus that more targeted and stricter regulatory interventions are required.
₹782 crore allocated in FY26; likely to rise in FY27
The FY26 Budget earmarked ₹782 crore for cybersecurity initiatives. But with the threat landscape expanding, officials indicate that the allocation is likely to increase significantly in FY27.
India already operates a national-level cybersecurity framework under the National Cyber Security Coordinator (NCSC), which coordinates with security, intelligence, telecom and IT agencies through the National Security Council Secretariat (NSCS). However, experts say the existing system must evolve to match the speed and complexity of modern cyber threats.
Strengthening real-time threat intelligence, expanding AI-based monitoring, enforcing mandatory data-breach reporting, and tightening online fraud regulations are among the reforms being prioritised. What the FY27 Budget may introduce:
- New regulations to counter AI-enabled fraud
- Stricter penalties for digital arrests and online impersonation
- A streamlined, centralised mechanism for cyber-fraud reporting
- Updated guidelines to curb social-media-based scams
- Higher allocation for national cybersecurity programmes
- Stronger international cooperation to target cross-border scam networks
The government official added,
“A number of steps have already been taken, but with cyber threats evolving rapidly, the security framework must be continuously upgraded. The FY27 Budget is expected to mark a significant step forward in this direction.”
