As 2025 draws to a close, Kerala finds itself reeling from an unprecedented financial hemorrhage due to sophisticated cybercrime, with losses crossing a staggering ₹775 crore for the year. Data from the state's cyber operations unit reveals that, on average, Keralites lost over ₹2 crore every single day to online fraudsters, marking a critical tipping point for the state's digital security.
The Anatomy of High-Value Heists
This year was defined not merely by an increase in the number of cases but by a systematic drainage of private wealth. The frauds were devastatingly effective, often wiping out the entire savings of affluent individuals. The state witnessed some of the largest individual losses in its history.
A pharmaceutical businessman from Kochi was cheated of ₹24.76 crore after being enticed into a fake trading portal. In another shocking case, a 77-year-old Kochi woman was systematically robbed of ₹6.3 crore over a two-month period. These were not anomalies but part of a rising wave of high-stakes financial crimes targeting residents across Kerala.
The Shift to Cognitive Warfare
Cybercriminals in 2025 largely abandoned exploiting mere technical flaws. Instead of focusing on weak passwords or malicious software links, they perfected the art of hacking the human mind. Their dominant strategy became cognitive warfare, preying on fundamental human emotions: fear, trust in authority, and the desire for social standing.
This psychological manipulation is starkly evident in the rampant "digital arrest" frauds. Despite widespread awareness campaigns, many, especially the elderly, continue to fall victim. In these elaborate schemes, scammers posing as uniformed officers trap victims in a high-pressure "virtual prison" via WhatsApp or Skype video calls, accusing them of money laundering or narcotics crimes.
The cruelty of this method lies in its prolonged nature, where the victim, kept isolated and terrified, is coerced into dozens of transactions over weeks or months before realizing the truth, leaving them both bankrupt and severely traumatized.
Targeted Attacks and Syndicate Operations
According to Adv Feroze Desikan, co-founder of the Cyber Suraksha Foundation, the perpetrators are not operating randomly. They specifically target individuals with substantial bank balances, particularly Non-Resident Indians (NRIs) or retirees holding significant life savings.
"These cybercriminals had accessed databases of such individuals. The calls are reaching people capable of paying out massive sums, which indicates that syndicates are operating with curated data," Desikan explained.
He highlighted that investment fraud was also rampant in 2025. Scammers used sophisticated replicas of legitimate investment firm apps and websites, even crediting small initial returns to build false credibility. Once a substantial investment was made, the victims were abruptly blocked. This trap ensnared everyone from young professionals to seasoned earners.
While impersonation of bank officials persisted, the police made significant strides by exposing a large Mule Account Network. The statewide Operation Cy-Hunt led to nearly 300 arrests, targeting individuals who withdrew defrauded money or rented out their bank accounts for commission. The police are now preparing for another phase of this crackdown.
The Psychological Trap and Social Stigma
Cybercrime investigator Dr. Pattathil Dhanya Menon points to a critical social factor enabling these crimes: the fear of stigma. Many seniors, though financially independent, have no one nearby to consult when threatened.
"They are targeted with claims of being implicated in POCSO cases, anti-national activities, or having fraudulent passports. Highly educated individuals with high social status often feel they cannot let anyone else know their predicament," Menon said.
She added that even in investment scams, many victims realize they are losing money but continue paying, hoping to recover some funds before others discover their loss—a realization that often comes too late.
A senior officer from the state police cyber operations unit emphasized that awareness alone is insufficient. "Residents' associations and pensioners' groups need to take up the task of addressing the elderly and retired officials directly to educate them further about these threats," the officer stated.
The financial year 2025 has served as a stark warning for Kerala, underscoring the urgent need for enhanced vigilance, targeted community education, and continued aggressive police action against the organized syndicates behind these debilitating cyber heists.
