International Journal for Research in Technological Studies| Vol. 1, Issue 10, September 2014 | ISSN (online): 2348-1439 Copyright© IJRTS | www.ijrts.com 4 Abstract— A lot of people in the world, mostly Indian have a limited knowledge of the crime occurring in cyberspace, known as cybercrime. Cybercrime happens in the world of computer and the Internet. This kind of crime has a severe impact on our economy, lives and society, because our society is becoming an information society, full of information exchange that is happening in cyberspace. Our research work is aimed at knowing the level of awareness of individuals on the existing phenomenon in India, and their impacts on India economy. A survey was carried out with the aims of getting these results using questionnaire as an instrument, the responses were quantitatively analysed using some statistical techniques. The results show that cracking, software piracy, and pornography among others are prevalent crimes in India. While the impacts of these crimes on Indian economy cannot be over emphasized. Recommendations were proposed on how these crimes can be minimized if not totally eradicated. Cyber crime, especially in India is growing at the rate of 50% per year and the number of incidents of cyber crimes is increasing day by day. India ranks fifth in the incidents of cyber crimes in the world. Keywords— e-crime, cyber crime, internet, computer hacking, pornography, identity loss, hacking, economics impact I. INTRODUCTION A crime is an offense that may be prosecuted by the state and punishable by law. A cyber crime is a type of crime which uses computers and networks as target or weapon. Today’s necessity is to minimize the cyber crimes occurring in various parts of the world. Cyber crimes in India are increasing at an alarming rate. It will be better if the rate of occurrence of cyber crime patterns is predicted for various parts of the countryCyber crime began with disgruntled employees causing physical damage to the computers they worked with, with the aim to get back at their superiors. As the ability to have personal computers at home became more accessible and popular, cyber criminals began to focus their efforts on home users[1]. Further research on this reveals that history of cybercrime was further established that the first published report of cybercrime occurred in the 1960s, when computers were large mainframe systems. Since mainframes were not connected with other ones and only few people can access them, the cybercrimes were always "insider" cybercrimes, which means employment, allowed them to access into mainframe computers, and then refers to as computer crime rather than cybercrime. Actually, in the 1960s and 1970s, the cybercrime, which was "computer crime" in fact, was different from the cybercrime we faced with today, because availability of Internet was restricted within some sections (e.g. US military) in that era. In the following decades, the increasing of computer network and personal computers transformed "computer crime" into real cybercrime. In fact, the former descriptions were "computer crime", "computer- related crime" or "crime by computer". With the pervasion of digital technology, some new terms like "high- technology" or "information-age" crime were added to the definition. Since Internet was invented, other new terms, like "cybercrime" and "net" crime became the order of the day as people began to exchange information based on networks of computers, also keep data in computer rather than paper. At the same time, the cybercrime was not only restricted in target cybercrime, but expanded into tool cybercrime and computer incidental. We therefore come to terms with a conclusion on the meaning that cybercrime is an evil having its origin in the growing dependence on computers in modern life. A simple yet sturdy definition of cybercrime would be unlawful acts wherein the computer is either a tool or a target or both‖. Defining cybercrimes as illegal behaviour directed by means of electronic operations that targets the security of computer systems and the data processed by them. Cybercrime in a broader sense computer-related crime: any illegal behaviour committed by means of, or in relation to, a computer system or network, including such crimes as illegal possession and offering or distributing information by means of a computer system or network.[5] Cyber Crime refers to all activities done with criminal intent in cyberspace. These fall into three categories: Cyber crime against the persons Cyber Crimes against Business and Non-business organizations’ Crimes against the government. cyber crime has transformed into a money spinner business that yields hundreds of millions of dollars and involves lesser risk than traditional crimes. Cyber crime, especially in India is growing at the rate of 50% per year and the number of incidents of cyber crimes is increasing day by day. India ranks fifth in the incidents of cyber crimes in the world Meanwhile, in an attempt to uncover these crimes billions of India is lost through these crimes annually with little or no hope of curbing it due to its complex nature. Most perpetrators of this crime are never caught and if at all caught, are never prosecuted because of lack of concrete evidence, organizational and societal awareness. As a result the extent and impact of Cybercrime is uncertain because lack of reporting leads to uncertainty with regard to the extent and impact of the crime. This is especially relevant with regard to the involvement of these crimes as compared to other organized crimes. Available information from the crime statistics in India is lacking and if any, do not reflect Effect of Cyber Crime Indian Economy Yerra Shankar Rao 1 Dr Hemarj Saini 2 Dr T.C.Panda 3 1 Ph.D.Schlor 2 Assistant Professor 3 Principal 2 Department of Computer science and Engineering & Information and Communication Technology 1 SOA University BBSR 2 jaypee University of Information Technology (Juit), Waknaghat, Solan, Himachal Pradesh, India 3 OEC BBSR