Indian Businesses May Lose ₹20,000 Crore to Cyber Crimes in 2025 | CloudSEK Report – A Growing Threat to the Digital Economy

Table of Contents

• Introduction
• What is Brand Name Abuse?
• Key Findings from the CloudSEK Report
• Why is Cybercrime Increasing in India?
• How Cybercrime Affects Businesses and Customers
• How Indian Businesses Can Protect Themselves
• Conclusion
• FAQs

Introduction

Cybercrime is becoming a major problem for businesses in India. As more companies go digital, hackers and scammers are finding new ways to attack. A recent report by CloudSEK, a cybersecurity company, has warned that Indian businesses might lose up to ₹20,000 crore to cyber crimes in 2025. One of the biggest threats is brand name abuse, which alone could cause losses of around ₹9,000 crore.

The report also highlights that industries like banking, finance, retail, and e-commerce will suffer the most. The number of cybercrime complaints is expected to cross 25 lakh in 2025, and 5 lakh cases will involve brand impersonation.

What is Brand Name Abuse?

Brand name abuse happens when fraudsters copy well-known company names, logos, or websites to trick customers. They create fake websites or send emails pretending to be from a trusted brand. The goal is to steal money, personal details, or financial data from unsuspecting customers.

For example:

• A fake banking website may ask you to enter your login details, and hackers steal your account information.

• A fake e-commerce website may sell products at huge discounts but never deliver anything.

• Scammers may use WhatsApp or SMS pretending to be from a company and ask you to click on links or share OTPs.

Key Findings from the CloudSEK Report

1. Massive Financial Losses: Indian companies could lose ₹20,000 crore due to cyber crimes in 2025.

   
   

2. Brand Name Abuse is a Major Problem: Losses from brand impersonation alone may reach ₹9,000 crore.

3. Industries Most Affected:

   • Banking and Financial Services: Expected losses of ₹8,200 crore.

   • Retail and E-commerce: Estimated losses of ₹5,800 crore.

4. Cybercrime Complaints Will Rise: More than 25 lakh complaints are expected in 2025, with 5 lakh linked to fake brand scams.

Why is Cybercrime Increasing in India?

Several reasons contribute to the rise in cyber crimes:

• More People Using the Internet: As more Indians use online services, scammers have more targets.

• Lack of Awareness: Many people do not know how to identify fake websites or scam emails.

• Weak Cybersecurity Measures: Small businesses often do not invest in strong security systems, making them easy targets.

• Rise of Online Payments: UPI and online banking make transactions easier, but they also increase fraud risks.

• Sophisticated Cyber Attacks: Hackers use advanced tools to breach security systems and steal sensitive information.

How Cybercrime Affects Businesses and Customers

Cyber crimes do not just cause financial losses. They also create trust issues and damage reputations. Here’s how:

For Businesses

• Loss of Money: Companies lose crores due to fraud.

• Damaged Reputation: Customers may stop trusting the brand.

• Legal Issues: Companies may have to deal with lawsuits or government investigations.

• Increased Security Costs: Businesses must spend more on cybersecurity to protect themselves.

For Customers

• Financial Loss: People lose money due to fake shopping sites, banking fraud, and phishing scams.

• Identity Theft: Personal details can be stolen and misused.

• Emotional Stress: Victims of cyber fraud suffer anxiety and stress.

How Indian Businesses Can Protect Themselves

Cybercrime is increasing, but businesses and individuals can take steps to protect themselves. Here are some important cybersecurity measures:

1. Strengthen Cybersecurity Measures

• Use strong passwords and multi-factor authentication (MFA).

• Install firewalls, antivirus software, and regular security updates.

2. Educate Employees

• Train employees to identify phishing emails, fake websites, and scam calls.

• Encourage them to report suspicious activities immediately.

3. Protect Customer Data

• Businesses should store customer data securely with encryption.

• Limit access to sensitive information only to trusted employees.

4. Monitor Brand Reputation

• Keep track of fake websites, social media accounts, and scam messages using the company’s name.

• Report fake accounts to platforms like Google, Facebook, and Twitter.

5. Secure Financial Transactions

• Always verify payment requests before processing them.

• Use secure payment gateways for online transactions.

6. Raise Customer Awareness

• Educate customers about common scams and how to recognize fake websites.

• Encourage customers to verify official communication before responding.

7. Work with Law Enforcement

• Report cyber crimes to India’s Cyber Crime Portal (www.cybercrime.gov.in).

• Work with authorities to take down fake websites and scam operations.

Conclusion

Cyber crimes are a growing threat to Indian businesses, and losses are expected to reach ₹20,000 crore in 2025. The biggest risk comes from brand name abuse, where fraudsters trick customers using fake websites and emails.

To fight cybercrime, businesses must invest in cybersecurity, train employees, protect customer data, and work with authorities. Customers should also stay alert and verify online transactions before sharing any information. By taking these steps, we can reduce cyber fraud and create a safer digital environment for businesses and consumers in India.

FAQs

What is the main finding of the CloudSEK report on cyber crime in India?

The report states that Indian businesses may lose ₹20,000 crore due to cyber crimes in 2025, with brand name abuse causing losses of ₹9,000 crore.

Which industries are at the highest risk of cyber crime in India?

The banking, financial services, retail, and e-commerce sectors are expected to suffer the most from cyber threats.

What is brand name abuse in cyber crime?

Brand name abuse happens when fraudsters copy well-known company names, logos, or websites to trick people into sharing sensitive information or making payments.

How do cyber criminals use fake websites to scam customers?

Cyber criminals create fake websites that look like real brands to steal login credentials, banking details, and personal data from unsuspecting customers.

How many cybercrime complaints are expected in India in 2025?

India is expected to receive over 25 lakh cybercrime complaints in 2025, with 5 lakh cases involving fake brand scams.

Why are cyber crimes increasing in India?

Cyber crimes are increasing due to more people using online services, lack of cybersecurity awareness, and weak digital security measures.

What role does phishing play in cyber fraud?

Phishing scams involve fraudulent emails, SMS, or links that trick users into revealing passwords, bank details, or OTPs.

How do hackers steal money through online banking frauds?

Hackers use methods like phishing, malware, and fake banking websites to steal account credentials and transfer funds illegally.

How does e-commerce fraud work?

Scammers create fake shopping websites, offering huge discounts to attract buyers, but never deliver the products after receiving payments.

What are deepfake scams in cyber crime?

Deepfake scams involve AI-generated fake videos or audio recordings that impersonate someone to manipulate victims into making payments or revealing secrets.

What cybersecurity measures can businesses take to protect themselves?

Businesses should use strong passwords, enable multi-factor authentication (MFA), train employees, and invest in cybersecurity tools.

How can customers protect themselves from cyber fraud?

Customers should verify websites, avoid clicking on suspicious links, and never share banking details with unverified sources.

How can banks prevent online fraud?

Banks can implement advanced security measures, monitor transactions for suspicious activities, and educate customers about fraud prevention.

What role does social media play in cyber crimes?

Cyber criminals use social media to gather personal information, spread phishing links, and impersonate brands or individuals.

How do scammers use fake job offers in cyber crimes?

Scammers offer fake job opportunities and ask victims for personal details or an upfront payment, then disappear without providing jobs.

What should you do if you fall victim to cyber fraud?

If you fall victim to cyber fraud, report it immediately to the cyber crime helpline (www.cybercrime.gov.in), your bank, and law enforcement agencies.

Why do small businesses suffer more from cyber attacks?

Small businesses lack strong cybersecurity measures, making them easy targets for hackers and scammers.

How do fake bank calls trick people?

Scammers call victims pretending to be from a bank and ask for OTP, card details, or login credentials to steal money.

What is malware, and how does it harm businesses?

Malware is a type of malicious software that can steal data, spy on users, or damage systems once installed on a computer or smartphone.

Can ransomware attacks affect Indian businesses?

Yes, ransomware attacks are increasing, where hackers encrypt a company’s data and demand payment to restore access.

How do fraudsters use WhatsApp scams?

Scammers send messages offering fake cashback, job offers, or urgent bank updates and trick users into clicking malicious links.

What is SIM swapping fraud?

SIM swapping occurs when scammers gain control of your mobile number to bypass security checks and steal banking credentials.

How do cybercriminals steal Aadhaar and PAN card details?

Hackers phish users through fake government websites or emails to steal Aadhaar and PAN card details for identity theft.

Why should businesses monitor their brand online?

Businesses should monitor fake websites, social media impersonation, and fraudulent activities to prevent brand abuse.

What legal actions can be taken against cyber criminals in India?

Cyber criminals can be punished under the Information Technology (IT) Act, 2000, with penalties including fines and imprisonment.

What is multi-factor authentication (MFA), and why is it important?

MFA adds an extra layer of security by requiring users to verify their identity using OTPs or biometric authentication before accessing accounts.

How can individuals avoid online shopping scams?

Always shop from verified websites, check customer reviews, and avoid deals that seem too good to be true.

How does two-step verification improve cybersecurity?

Two-step verification adds an extra security layer by requiring an additional authentication step, reducing the chances of unauthorized access.

What is the future of cybersecurity in India?

As cyber crimes increase, businesses and individuals must adopt stronger security measures, awareness programs, and advanced cybersecurity technologies.