Small Towns, Big Targets: How India’s Tier-2 Cities Became Cybercrime Hotbeds

India's digital revolution has brought high-speed internet, smartphones, and online services to the farthest corners of the country. But with rapid digitization has come a darker consequence: the rise of cybercrime in Tier-2 cities. Once considered relatively insulated from sophisticated digital threats, cities like Jaipur, Bhopal, Lucknow, Patna, Surat, and Coimbatore are now emerging as new hunting grounds for cybercriminals and scam syndicates.

According to recent data released by the National Crime Records Bureau (NCRB), cybercrime incidents in Tier-2 cities have tripled over the past five years, with online financial frauds and phishing topping the list.

Explore NCRB’s official crime data here.

Why Tier-2 Cities? Understanding the Shift

For years, India's major metros like Delhi, Mumbai, and Bengaluru were the primary focus for cybercrime—thanks to higher internet penetration and banking activity. But with Tier-2 and Tier-3 cities witnessing an explosion of digital adoption—thanks to UPI, Aadhaar, and affordable smartphones—cybercriminals are adapting fast.

Here’s why these cities are now on the radar:

• Lack of digital literacy: Many first-time internet users are unaware of basic cyber hygiene.

• Banking inclusion without security awareness: With schemes like Jan Dhan and UPI integration, these cities are digitally active but digitally naive.

• Lower law enforcement capacity: Local police often lack dedicated cybercrime cells or advanced tools.

• Remote work and gig economy boom: Tier-2 cities now host a growing population of freelancers and IT professionals, increasing cyber exposure.

For insights into digital adoption trends in smaller cities, refer to the IAMAI-Kantar ICUBE 2023 report.

Types of Cybercrime Targeting Tier-2 India

1. UPI and QR Code Frauds
   Criminals lure users with job offers, cashback schemes, or fake product listings and send malicious QR codes to siphon money. Cities like Nagpur and Rajkot have seen a surge in QR-related UPI thefts.

2. Online Job and Work-from-Home Scams
   Fraudulent companies post job listings on Telegram, WhatsApp, and Facebook, promising high returns for minor tasks. Victims are asked to pay registration or processing fees and then ghosted.

3. Loan App Harassment
   Fake loan apps—often of Chinese origin, as highlighted in the CERT-In advisory—have been aggressively targeting users in Tier-2 regions with blackmail and data theft tactics.

4. Investment and Cryptocurrency Scams
   Ponzi schemes disguised as legitimate apps lure young investors from smaller cities with promises of high ROI. Once funds are deposited, the apps vanish or block withdrawals.

5. Social Media Impersonation and Sextortion
   Cybercriminals are using deepfakes and cloned social media accounts to target unsuspecting users. Incidents of sextortion and blackmail are rising particularly among teenagers in cities like Kanpur and Vadodara.

Real-World Example: Indore’s Cybercrime Explosion

Indore, one of India’s fastest-growing Tier-2 cities, registered over 1,200 cybercrime complaints in 2024 alone, with nearly 400 involving financial frauds. The city’s Cyber Police Station, which started with just five officers, is now overwhelmed, according to an investigative report by The Hindu.

The rise has prompted Madhya Pradesh Police to launch awareness campaigns and increase training, but challenges remain.

Government’s Response: Progress with Gaps

The Indian government has rolled out several initiatives, including:

• Cyber Swachhta Kendra: A botnet cleaning and malware analysis centre launched by MeitY. Learn more here.

• Indian Cyber Crime Coordination Centre (I4C): A nodal agency under MHA for cybercrime reporting and research.

• Cybercrime Reporting Portal: Victims can report incidents at https://cybercrime.gov.in.

However, critics argue that most Tier-2 city police stations remain ill-equipped, lacking proper training and cyber forensic infrastructure.

What Needs to Change

1. Grassroots Digital Literacy

Digital India needs to go beyond access. Cyber hygiene should be a core part of digital skilling programs, especially in local languages.

2. Cyber Police Cells in Every District

Each district—regardless of population—should have a dedicated cyber unit with proper forensic tools and legal support.

3. Public-Private Collaboration

Banks, fintechs, and telecom companies must partner with local law enforcement to track and report frauds quickly.

4. School and College Cyber Safety Curriculum

Early education in cyber safety, phishing awareness, and data protection is key to long-term digital resilience.

Expert Insights

Cybersecurity expert Rakshit Tandon notes that, “The myth that only metros are vulnerable is outdated. The new victims—and often new criminals—are emerging from Tier-2 and Tier-3 cities. It’s a national problem now.”

In a recent report by Data Security Council of India (DSCI), it was noted that over 60% of cybercrime arrests in 2024 were traced to smaller cities, where syndicates operate through rented spaces and anonymous online identities.

Conclusion: A Digital Future That Needs Guardrails

As India accelerates towards becoming a trillion-dollar digital economy, the rapid tech penetration into its heartland brings both opportunity and vulnerability. The rise of cybercrime in Tier-2 cities is not just a law enforcement issue—it’s a societal challenge that calls for education, investment, and coordinated response.

The solution isn’t to halt digital progress—it’s to ensure it grows on a foundation of awareness, accountability, and airtight security.