Economic crimes are a growing concern in India's major cities, with a significant surge in reported cases in recent years. The latest data from the National Crime Records Bureau (NCRB) reveals a 30.9% jump in economic offences in metropolitan cities, reaching 41,220 cases in 2023, compared to 31,501 in 2018. This translates to an average of 113 economic crimes reported daily in these cities in 2023, a notable increase from 86 per day in 2018.
Mumbai Leads in Economic Offences
Among metropolitan cities, Mumbai recorded the highest number of economic offences in 2023, with 6,476 cases. However, this figure represents a decrease compared to the 6,960 cases reported in 2022. Despite the decrease, Mumbai's position as the financial capital contributes to its higher incidence of economic crimes. Hyderabad followed Mumbai with 5,728 cases, and Jaipur occupied the third spot with 5,304 cases.
Types of Economic Crimes
The majority of economic offences involve forgery, cheating, and fraud, accounting for nearly 90% of the reported incidents. These crimes often target individuals and businesses, resulting in financial losses ranging from ₹1 to 10 lakh in most cases. However, there are also instances of large-scale frauds involving crores of rupees. Criminal breach of trust makes up approximately 11% of economic offenses.
State-Level Data
At the state level, Maharashtra reported 19,803 financial fraud cases in 2023, an increase from 18,729 cases in 2022 and 15,550 in 2021. Rajasthan topped the list of states with 27,675 financial fraud cases, followed by Telangana with 26,321 cases. Maharashtra secured the third position.
Cybercrime
In terms of cybercrime, Maharashtra recorded 8,103 cases in 2023, placing it fourth among states. Karnataka led with 21,889 cases. Among metropolitan cities, Mumbai reported 4,131 cybercrime cases in 2023, ranking third. Bengaluru topped the list with 17,631 cases, followed by Hyderabad with 4,855 cases.
Factors Contributing to the Rise in Economic Crimes
Several factors contribute to the increase in economic crimes in Indian metro cities. The rapid adoption of digital transactions, the expanding e-commerce sector, and increased digital activity have created new opportunities for fraudsters. Criminals exploit gaps in regulatory frameworks and law enforcement, particularly as financial activities and investments move to emerging economic centers. Furthermore, economic inequality within cities can also contribute to higher crime rates.
Impact of Economic Crimes
Economic offences not only cause financial losses to individuals and businesses but also erode investor and business confidence. The rise in these crimes poses a significant threat to the economic stability and growth of metropolitan cities. While most cases involve losses of less than Rs 50 lakh, the scale of organized and high-value fraud remains a significant threat to investor and business confidence. In 2023, there were 3,191 cases where assets lost ranged from Rs 1 crore to Rs 50 crore; 37 cases involved losses between Rs 50 crore and Rs 100 crore, and 23 cases involved losses exceeding Rs 100 crore each.
Addressing the Challenge
To combat the rise in economic crimes, it is crucial to strengthen regulatory frameworks, enhance law enforcement capabilities, and raise public awareness. Increased vigilance, timely reporting of incidents, and cooperation between law enforcement agencies and financial institutions are essential to prevent and detect economic offences. Furthermore, measures to reduce economic inequality and promote financial literacy can help mitigate the underlying factors that contribute to crime.
