India is set to face significant financial losses due to cybercrimes in 2025, with an estimated impact of Rs. 20,000 crore. A recent report by cybersecurity firm CloudSEK outlines the rising threat of cyberattacks, with brand abuse, phishing scams, and fake domains identified as the primary methods used by attackers. Despite advancements in technology, including artificial intelligence (AI), cybercriminals are expected to rely heavily on sophisticated social engineering tactics to carry out fraudulent activities.
Brand Abuse and Fake Domains: A Growing Threat
The report published by CloudSEK, a leading cybersecurity firm, predicts that brand abuse alone will account for nearly Rs. 9,000 crore of the total financial losses in 2025. Brand abuse refers to the unauthorized use of trusted brand identities for fraudulent purposes, and it has become a major avenue for cybercriminals to deceive victims.
In addition to brand impersonation, the report highlights the growing risk posed by fraudulent mobile apps and fake website domains. Cyber attackers are increasingly exploiting these tactics to trick unsuspecting users into sharing personal information or making fraudulent transactions.
Sector-Wise Impact of Cybercrimes
CloudSEK’s report breaks down the expected financial losses by industry. The financial sector is anticipated to bear the largest portion, with losses amounting to up to 41% of the total—around Rs. 8,200 crore. This will be followed by the retail and e-commerce sectors, which could lose a combined 29% of the total. Government services are also expected to suffer, with an estimated Rs. 3,400 crore in losses, or 17% of the total.
The findings are based on data from 200 organizations, covering over 5,000 domain takedowns and 16,000 incidents of brand-related cyber threats. CloudSEK also referenced official data from the Indian Cyber Crime Coordination Centre (14C), which reported a loss of Rs. 11,333 crore in the first nine months of 2024. The report predicts that these cybercrimes will continue to rise in 2025.
Impact on Businesses and Individuals
While businesses will face substantial losses due to reputational damage and the cost of remediation, the brunt of the financial hit will fall on individuals. According to the report, individuals are expected to lose up to Rs. 14,000 crore in 2025. Cybercriminals will primarily target people through phishing scams, fake job postings, and investment frauds.
The report also highlights the significant costs businesses will incur in response to these attacks. Companies may need to spend Rs. 6,000 crore on remediation efforts, including legal fees, customer compensation, and upgrades to security infrastructure.
A Growing Concern for India’s Digital Future
The rise in cybercrime, particularly through social engineering and brand abuse, poses a serious threat to India’s digital economy. As more people and businesses engage online, the risks of falling victim to these frauds only increase. It’s crucial for both organizations and individuals to remain vigilant and proactive in safeguarding against these threats.
With the predicted surge in cybercrimes this year, experts urge that greater awareness and stronger cybersecurity measures be implemented. As the digital landscape evolves, so too must the strategies to combat cyber threats, ensuring a safer online environment for all.
Are you prepared to protect yourself from cyber threats? As India braces for another year of increasing cybercrime, it’s more important than ever to stay informed and secure.
