Cybercrime Trends in Tier 2 & 3 Indian Cities


 

India's digital revolution has reached as far as metro hubs. Mobile phones, affordable internet, and online services now reach millions of people in Tier 2 and Tier 3 cities—but this digital access also made them target-rich environments for cybercrimes. What initially was urban-centric threat is now finding its expression in smaller towns, reaching the common user.

 

1. Cybercrime's Sudden Upturn

National Crime Records Bureau (NCRB) figures indicate that cybercrimes escalated more than four times in FY 2024, inflicting around $20 million in losses. Tier 2 towns contribute a significant percentage of this, and endpoint cyberattacks have escalated extensively.

Bhavnagar, Banaskantha, Mehsana (Gujarat) are new hotspots, previously unheard of, now engaging actively in digital arrest scams and impersonation stock schemes.

Alwar, Jamtara, Deoghar, and Nuh are now hubs of organised deceit, an outcome of low awareness and weak cybersecurity infrastructure.

 

2. Why Tier 2/3 Cities Are Vulnerable

a. Low Cyber Awareness

Most online users in small cities haven't been provided with the required cybersecurity training, and thus 4 out of every 10 attacks include financial fraud, phishing, or one-time password scams—usually through automated fake WhatsApp or Telegram messages.

b. Weak Defenses in Local Institutions

Tier 2 industries and SMEs tend to use default passwords and unpatched software. Cyber-incidents due to cloud misconfigurations and unsecured endpoints account for approximately 62%.

c. Economic Incentives for Fraudsters

With scarce employment opportunities, rural youth end up getting engaged in online fraud—acting as mules for phishing gangs.

d. Access to Technology

Cheap data and affordable smartphones have spread internet penetration throughout rural and semi-urban India, but without corresponding security awareness.

 

3. New-age Threats in Smaller Cities

a. Digital Arrest Scams

Fraudsters impersonate police or CBI officials on video calls, cheating victims by accusing them of financial crimes. These have already cost Indians around ₹1,935 crore in 2024. Cities such as Jaipur and Gurgaon have reported extensive incidents, and smaller districts are also soon to follow.

b. Fake Trading App Schemes

In Coimbatore and other cities, consumers lost almost ₹24 crore in 2025 to investment scams on social media. The spillover reveals smaller towns are also getting trapped in such online pitfalls.

c. Malware & Ransomware Attacks

Tier 2 centers like Jaipur, Surat, and Ahmedabad saw a sudden spike in malware attacks. Businesses, healthcare, and schools, which are ill-prepared for cyber defenses, will be under threats.

 

4. Statistical Highlights: Bigger Picture

Organizations monitored nearly 369 million security events on 8.44 million endpoints in India in 2024—almost 685 attacks per minute, with Tier 2 cities dictating the persecution.

The Future Crime Research Foundation reported that only 10 districts accounted for 80% of incidents—districts from smaller towns such as Alwar, Jamtara, Bokaro, Giridih, and Deoghar.

 

5. Cyber Awareness: A Silver Lining

Despite growing threats, positive responses are on the horizon:

Gurgaon Police emphasize the fact that awareness is the first line of defense; they also partner with NASSCOM and industry in training citizens.

Jaipur Cyber Support Centre provides legal and psychological assistance to victims, including women and children, as a reaction to the explosion of complaints.

National Cyber Crime Reporting Portal (Cybercrime.gov.in) enables e FIR registration, facilitating victims from any town.

The government is creating a federal database of more than 1.4 million cybercriminal identities, which already prevented about ₹1,800 crore worth of fraudulent transactions.

 

6.  Why Tier 2/3 Cybersecurity Needs to Be a Priority

Factor                            impact on Tier 2/3 Cities

Lower Awareness - Users are easily tricked by scams

Weaker Security - Endpoints are vulnerable targets

Rapid Digitization - Internet users increase, security doesn't

Economic Gains - Bring scammers to small towns

Evolving Threats - Local infrastructure not ready

 

7. Path Forward: Solutions & Strategies

1. Campaigns for Digital Literacy

Civic initiatives such as Cyber Shakti and activities by Cyber Peace Foundation (New Delhi) and DSCI (Data Security Council of India) need to scale up to district-level workshops.

2. Safe Cloud Practices

Small enterprises too need to:

Employ multi-factor authentication

Fix weaknesses in time

Employ Identity & Access Management (IAM) tools.

3. Local Cyber Cells & Support

Spurred by states such as Rajasthan and Madhya Pradesh with cyber helplines and e FIR services.

4. Cyber Insurance Expansion

In Tier 2/3 cities, 23–48% of households are willing to purchase cyber insurance—this is an encouraging sign for risk management solutions.

5. National Integration

Enhance systems such as I4C (Indian Cyber Crime Coordination Centre) and Cybercrime.gov.in for smooth coordination between districts

 

Conclusion

India's Tier 2 and Tier 3 cities have reached a tipping point. They are now digital incubators—teeming with opportunities but susceptible to malicious cyber threats. As economies expand, cybersecurity infrastructure must grow too.

Investment in awareness, institutional preparedness, legal access, and technology is now not a choice but a necessity. We can only hope that we can teach one citizen per district to pause before they click, to check before they transfer, and to report quickly. India's digital future will then be inclusive and secure.

 

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