India faces rising cyber threats from AI and banking scams

India is facing an escalating cybersecurity threat driven by the rapid expansion of its digital economy and the emergence of Artificial Intelligence. The number of recorded cybersecurity incidents rose from 2.04 million in 2024 to 2.94 million in 2025, highlighting the vulnerability of critical infrastructure including UPI, digital banking, and government databases.

AI has enhanced the sophistication of attacks through highly convincing phishing messages and deepfake technology, which can mimic voices and faces to facilitate fraud.

In a specific recent development, cybercriminals have been exploiting Google’s Firebase platform to create fraudulent websites and apps that mimic major financial institutions such as SBI, ICICI Bank, and Axis Bank. The Indian Cyber Crime Coordination Centre (I4C) identified 57 suspicious pages and databases, prompting directives to Google to remove them. These scams often target users with lures such as PM-KISAN installments or credit card rewards to steal sensitive banking credentials.