MC EXCLUSIVE FY27 Budget may propose stricter cyber rules as online frauds surge

The number of cybersecurity incidents recorded in India more than doubled from 10.29 lakh in 2022 to 22.68 lakh in 2024.

Cybersecurity is likely to be a key focus area in the upcoming Budget, amid a rise in online fraud driven by the emergence of artificial intelligence.

The government is considering a new cybersecurity framework to tackle scams such as “digital arrests” and other misuse of the internet.

“The idea is to be future-ready. We can definitely expect stronger measures or policies on cybersecurity, given newer threats like airline spoofing and digital arrests. Inter-ministerial discussions are on to see what more is needed in the area,” a government official said, requesting anonymity.

The FY26 Budget allocated Rs 782 crore to cybersecurity projects.

To be sure, India already has laws to address cybercrime, primarily under the Information Technology Act, 2000, along with provisions in the updated penal code (Bharatiya Nyaya Sanhita, 2023).

The country also has a National Cyber Security Coordinator (NCSC) under the National Security Council Secretariat (NSCS) that monitors threats to cyber security and ensures coordination among different agencies, including between law enforcement, intelligence, regulatory, and telecom and IT agencies, to mitigate such risks.

However, the official adds that evolving threats such as AI-driven fraud, social media scams, and online impersonation may require additional measures and possibly updated regulatory frameworks.

“The government has done something, but more has to be done in terms of cybersecurity,” the official added.

In India, fake airline-ticket scams and “digital arrests”, where criminals pose as officials online and extort money, are on the rise.

According to government estimates, the number of cybersecurity incidents recorded in India more than doubled from 10.29 lakh in 2022 to 22.68 lakh in 2024.

As of February 28, 2025, data from the National Cyber Crime Reporting Portal (NCRP) shows cyber frauds amounting to Rs 36.45 lakh.