Digital fraud: 3 in 4 victims recovered no money; 27% paid cops bribe

New Delhi: Nearly three-fourths of victims of digital financial fraud recovered none of the money they lost, highlighting major gaps in the responses of the police and banks, according to the Status of Policing in India Report 2026, released by Common Cause and Lokniti-CSDS.

The report found that 72% of victims of digital financial fraud received no recovery, despite 63% reporting the fraud to their bank within 24 hours. More than half also lodged separate complaints with their banks. Yet one in five victims expressed strong dissatisfaction with coordination between banks and police, while 22% were highly dissatisfied with their bank's efforts to recover the money.

The findings also point to a troubling link between access to the system and recovery. Among victims whose police complaints were registered, 27% said they had paid a bribe. Those who reported paying a bribe were three times more likely to recover their entire loss than those who did not. Poor victims were nearly four times as likely as wealthier victims to report paying a bribe.

Personal connections also appeared to influence outcomes. More than a third of victims contacted people they knew to help get their cases handled by police. Those who sought such assistance were three times more likely to recover their full losses.

Accessing the police themselves proved difficult. Only 51% of cybercrime victims formally complained, while 11% initially approached the police but did not continue. Among those who complained, 42% said registering a case was difficult. Nearly a quarter had to visit a police station at least five times.

The report, based on a survey of 8,306 people across 16 states and interviews with 37 individuals, found that 13% of respondents had experienced cybercrime in the previous two to three years. More than half of reported cybercrimes involved financial fraud.

The findings further showed that 31% of digital financial fraud victims believed their financial information had been leaked from within a bank, though the report did not establish such leaks as fact.

The researchers said stigma, distrust and doubts about police action contributed to widespread under-reporting of cybercrime.