Digital India, Gullible Users: The $1.1-Trillion Cost Of Online Illiteracy

By Kunal Dua

How big does the number $1.1trillion sound to you? Pretty big, right? $1.1trillion is equivalent to the entire GDP of Indonesia, and is about a third of India’s GDP. 

It’s also the total amount of money that ordinary people across the world lost to scams in the year 2023, as per research by the Global Anti-Scam Alliance. 

In India, nearly 68,000 cybercrime cases were reported in just one year, and that’s barely scratching the surface. Most cases go unreported, either out of shame, fear, or sheer helplessness.

We’re living in the golden age of online scams. From fake courier delivery links to deepfake video calls asking for urgent payments, today’s scams aren’t just technical - they’re psychological. And the only real firewall is a smarter, savvier user.

The Illusion Of Being 'Digitally Literate'

One of the big problems we face today is that nearly everyone with a smartphone in India knows how to use sophisticated digital services such as money transfer, credit card payments, booking tickets online, and even applying for and receiving loans through their phones. But does that necessarily make them digitally literate? No, that can be classified as digital functionality, not digital literacy. 

Digital literacy in 2025 has to go beyond “how to” and move into “why” and “what if.” Why does this message feel rushed? What if this caller isn’t who they claim to be? Why does this app need access to my contacts?

Scams Are Evolving. Users Need To As Well

Modern scam artists go to great lengths to look and sound professional. If they’re scamming you on WhatsApp, they’ll put your bank’s logo as their display picture. If they’re calling you on the phone, they will gather enough data about you from the dark web and know every detail about you - your address, your credit card number, and which bank branch your account is in. Such data is available for sale for a pittance on the dark web!

That’s what tricks users. You’ll get a call from an authoritative-sounding person who correctly shares details about you, but then the script flips. 

“Your bank account will be blocked.” “Your electricity will be disconnected in 30 minutes.” “Your PAN is linked to a fraud case.” Panic is the hook. Urgency is the bait.

What they’re doing is using emotional manipulation as a weapon. Real institutions don’t function this way. They don’t demand instant action over WhatsApp or ask for OTPs on phone calls. And yet, people fall for it every single day - because we’ve never been taught how to navigate digital spaces. And remember, no matter how sophisticated a scammer is, in 90% of the cases, the scam happens with the victim’s aid. The victim is the one who agrees to transfer the money or share the OTP that leads to the loss. And as a recent investigation in the Indian Express revealed, most victims never end up recovering their lost money

What Is Digital Hygiene? 

Scam prevention isn’t just a job for cyber cells or IT departments. It’s something we all need to own. That means practising everyday digital hygiene, which includes

  • Don’t click on links you didn’t ask for.
  • Don’t share sensitive data over calls, even if the number “looks” real.
  • Don’t respond to threats or deadlines. Pause before reacting.

And yes, use protective tools. Spam-blocking apps, caller ID services, and browser security settings should be as basic as seatbelts when you’re online.

And then some apps detect suspicious callers or warn users about scam links. They use massive databases, AI models, and user reports to flag numbers linked to fraud, spam, or phishing attempts, sometimes in real time. The best ones go beyond just blocking. They educate too, with warning pop-ups like “This number has been reported by 5,000+ users” or alerts when a URL looks shady.

India’s digital boom is real, but digital literacy is wildly uneven. We need scam-literacy content in local languages, visually appealing formats and easy-to-understand jargon. We need to stop designing digital safety education for the already-savvy and start building for the everyday user.

It’s time for India’s idea of digital literacy to grow up. Less of “how to use” and more of “how not to get used”.

(The author is VP Product at Truecaller)

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