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Amid a sharp rise in online financial frauds, Karnataka Police have registered a major success in tracing and recovering money siphoned off by cybercriminals. Over the past three years, the state police have recovered a total of ₹627 crore lost to various forms of cyber fraud. Of this, nearly ₹470 crore has already been returned to victims, while the remaining amount is in the process of being released following court approvals.
The information was shared during the recently concluded assembly session in Belagavi in response to a query. State home minister G Parameshwara said sustained efforts by the police to track money trails and coordinate with banks had significantly improved recovery outcomes in cybercrime cases.
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Recoveries Rise Year After Year
According to official data presented in the assembly, Karnataka Police recovered ₹127 crore in cyber fraud cases up to November 15, 2025. In the previous year, recoveries stood at ₹323.5 crore, while in 2023, police action prevented losses amounting to ₹177.6 crore. Authorities stressed that refunding the recovered money to victims remains a top priority, with necessary legal procedures being followed in each case.
Why Cyber Fraud Money Is Hard to Recover
Police officials said recovering money lost to cybercrime is an extremely complex process. Fraudsters typically move funds rapidly across multiple bank accounts, digital wallets and online platforms to evade detection. In many cases, the money is converted into cryptocurrency, making tracking and recovery nearly impossible.
Investigators have also found instances where fraud proceeds are routed through online gaming platforms. While banks are sometimes able to reverse unauthorised card transactions, transfers involving cryptocurrency are largely irreversible, posing a major challenge for law enforcement agencies.
Transaction ‘Level System’ Used for Tracking
To assess recovery prospects, police classify fraud-related transactions into levels ranging from 1 to 10, based on how many times the money changes hands. If the amount remains in the fraudster’s account when a complaint is lodged, it is treated as a level-1 transaction, offering the highest chance of recovery.
As the money moves through additional accounts, the level increases, and tracking becomes more difficult. Officials said recovery is still possible as long as the funds circulate within banking channels. However, once they move into cryptocurrency or external platforms, retrieving the money becomes extremely difficult.
Timely Reporting Is Critical
Police emphasised that prompt reporting by victims plays a decisive role in recovery. Once a complaint is registered through the 1930 cybercrime helpline or the cybercrime.gov.in portal, banks can immediately freeze the recipient accounts. This often prevents further movement of funds and increases the chances of recovery.
Officials noted that full or partial recovery is possible in only 10–20% of cases, as cybercriminals tend to move money within minutes of receiving it.
Common Fraud Techniques
According to police, cybercriminals frequently impersonate bank officials, police personnel, courier agents or job recruiters to deceive victims. Many scams begin with a simple phone call or message and gradually escalate into requests for OTPs, installation of remote access applications and instant fund transfers.
Statewide and Mysuru-Specific Data
Assembly records show that Karnataka suffered losses of ₹5,474 crore across 57,733 cyber fraud cases over the last three years. In Mysuru alone, cybercriminals siphoned off around ₹47 crore in 2025, of which approximately ₹5 crore has been recovered so far.
Police Advisory
Karnataka Police have urged citizens to remain vigilant against unknown calls and messages, avoid sharing OTPs or banking details, and report suspicious transactions without delay. Officials said awareness, caution and swift action remain the most effective tools in preventing cyber fraud and minimising losses.
