Between January and May 2025, India saw unprecedented cybercrime losses totaling ₹7,000 crore—an average of ₹1,000 crore per month. According to the Indian Cyber Crime Coordination Centre (I4C), part of the Ministry of Home Affairs, the majority of these scams originate in Cambodia, Myanmar, Vietnam, Laos, and Thailand.
These operations are not merely remote cyberattacks. Many are large-scale fraud rings allegedly operated by Chinese syndicates using Southeast Asia as their base. Victims are lured into fake investment apps, stock trading platforms, digital arrest threats, and task-based scams that promise returns for simple tasks.
Scam Factories and Human Trafficking Behind the Screens
The I4C report suggests that these scams are being run from fortified compounds where even the scammers are often victims. Investigations revealed that trafficked individuals—including Indians—are being forced to work in these high-security scam hubs controlled by Chinese handlers.
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At least 45 such scam compounds have been identified in Cambodia alone, with additional sites in Laos and Myanmar. Law enforcement agencies believe these facilities function like cybercrime sweatshops, where trafficked people are coerced into defrauding unsuspecting Indians.
Diplomatic Moves and a Demand for Coordinates
The gravity of the situation prompted senior Indian officials to meet with their Cambodian counterparts in Delhi. The discussion focused on an action plan to shut down these cybercrime hubs. Cambodian officials requested India provide precise geographic coordinates of the scam centers to facilitate targeted crackdowns.
India’s Ministry of Home Affairs, in collaboration with intelligence agencies, is now working on mapping these locations. The government also aims to enhance inter-agency cooperation across affected countries to dismantle the network.
States Hit Hardest, Threat Looms Ahead
The recruitment of Indians into these scam operations is not random. Maharashtra, Tamil Nadu, Jammu & Kashmir, Uttar Pradesh, and Delhi are among the top states where local agents are allegedly operating to traffic Indian youth into these cybercrime hubs.
The danger isn’t slowing down. According to I4C projections, India could lose over ₹1.2 trillion to cyber fraud in the next year alone. The exponential growth of digital crimes—especially those driven by foreign-controlled operations—has pushed cybersecurity to the top of the national agenda.