A recent report from a cybersecurity firm indicates that India could face financial losses amounting to approximately Rs. 20,000 crore due to cybercrimes by 2025. The analysis suggests that brand abuse, phishing schemes, and counterfeit domains will be the primary methods employed by cybercriminals this year. Despite advancements in technology, including artificial intelligence, attackers are expected to rely on sophisticated social engineering tactics to execute their schemes. The report estimates that brand abuse alone could contribute to losses of nearly Rs. 9,000 crore.
Brand Abuse, Fake Domains Could Lead to Major Financial Losses in India in 2025
CloudSEK, the cybersecurity firm responsible for the report, released a white paper detailing the predicted economic impact of cybercrime on India, estimating losses of Rs. 20,000 crore in 2025. According to their findings, brand name abuse could account for up to Rs. 9,000 crore in damages. The firm defines brand abuse as the “unauthorized use of trusted brand identities for fraudulent purposes,” identifying it as a significant tactic used by cybercriminals to exploit unsuspecting victims.
In addition to brand impersonation, CloudSEK points out that deceptive mobile applications and fraudulent website domains could also be tools for attackers looking to deceive the public. A sector-wise breakdown in the report suggests that the financial sector could suffer losses of up to 41 percent of the total, equating to about Rs. 8,200 crore. Following this, the retail and e-commerce sectors may experience about 29 percent of these financial damages, while government services are expected to incur approximately 17 percent, or Rs. 3,400 crore.
The findings of the report are based on data collected from 200 organizations and include over 5,000 instances of domain takedowns recorded by CloudSEK, alongside 16,000 cases of brand-related cyber threats. Additionally, it references data from the Indian Cyber Crime Coordination Centre (14C), which reported that the country experienced losses of around Rs. 11,333 crore in just the first nine months of 2024, with incidents anticipated to surge this year.
CloudSEK emphasized that businesses will face significant repercussions stemming from these cyber threats, as they will endure reputational harm linked to cybercriminals misusing their names for fraudulent purposes. The report cites potential costs for companies upwards of Rs. 6,000 crore, including expenses related to remediation, legal fees, customer compensation, and enhancements to security measures.
Nevertheless, individuals are expected to bear the largest share of the financial fallout, with projected personal losses nearing Rs. 14,000 crore in 2025. These individual-centered attacks will likely utilize strategies such as phishing scams, fraudulent job postings, and investment scams.
