Cyber Fraud Crackdown: Karnataka Freezes Rs 436 Crore, Maharashtra Tops Recovery List

Karnataka has emerged as the second-best performing state in the country in terms of freezing funds lost to cyber fraud, with law enforcement agencies successfully blocking Rs 436 crore through bank lien-marking mechanisms, Home Minister Priyank Kharge said on Friday. The announcement was made following a review of the state's cybercrime response systems at the Police Wireless Headquarters on MG Road in Bengaluru.

Kharge said Karnataka has significantly strengthened its efforts to tackle the growing menace of cybercrime by deploying advanced technology, creating dedicated response teams and improving grievance redressal mechanisms for victims. According to official figures, the state managed to freeze Rs 436 crore out of the Rs 2,640 crore reported lost to cyber fraud, accounting for approximately 17 per cent of the total amount. Maharashtra ranked first by freezing Rs 548 crore out of reported losses of Rs 3,203 crore, also representing a recovery rate of 17 per cent.

The minister revealed that between January and May 2026, the Police Wireless Unit received 10.33 lakh calls and registered 90,225 cybercrime complaints. During the same period, cyber fraudsters allegedly defrauded citizens of Rs 807 crore, of which authorities have already succeeded in blocking Rs 216 crore through timely intervention and coordination with financial institutions.

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To improve recovery rates and accelerate investigations, Karnataka Police have established dedicated bank follow-up teams tasked with initiating lien marking on suspicious transactions and coordinating closely with banks. Officials said these teams play a critical role in ensuring swift action before fraudulent funds can be withdrawn or transferred further.

Kharge also highlighted capacity-building initiatives undertaken by the department. Personnel from the Police Wireless Unit have been trained in cyber investigations, system administration and the use of the Indian Cyber Crime Coordination Centre (I4C) platform. Special liaison officers have been appointed to coordinate with banks, collect CCTV footage, facilitate FIR registration and assist victims in recovering blocked funds.

Additionally, 51 Police Sub-Inspectors and Head Constables have been deployed on the I4C platform to expedite the blocking of fraudulent bank transactions and improve response times. The state government believes these measures will further strengthen Karnataka's ability to combat cybercrime, improve fund recovery rates and provide faster relief to victims of online financial fraud.

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