India’s digital economy, projected to reach $1 trillion by 2030, faces a growing adversary: bots. These automated programs are quietly draining billions through fraud, credential theft, and infrastructure sabotage.

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From e-commerce to fintech, bots are mimicking human behavior at scale, impacting revenue, user experience, and business intelligence.

Globally, bot-driven fraud costs businesses over $35 billion annually, according to recent industry estimates. In India, where digital adoption is surging and regulatory frameworks are still evolving, the threat is even more acute.

A Growing Menace Behind the Scenes

Unlike traditional cyberattacks that often make headlines, bot attacks operate in the shadows. These automated programs are built to mimic human behavior and carry out tasks at scale, ranging from credential stuffing, inventory hoarding, web scraping, to ad fraud and fake account creation.

“Think of it as a silent heist. Every click, login attempt, or form submission by a bot can distort business intelligence, degrade user experience, and ultimately lead to massive financial losses,” says Prophaze, an AI-powered Application Security platform that protects enterprises from such threats.

A recent study by Imperva revealed that 47.4% of all internet traffic in 2023 was generated by bots with 30.2% being classified as “bad bots”, or those with malicious intent. In India, sectors like e-commerce, fintech, travel, and online education are witnessing unprecedented surges in bot attacks, many of which go undetected due to the sophistication of these tools.

E-commerce & Ticketing Platforms: A Warzone for Bots –

One of the most affected sectors in India is e-commerce. Major platforms see tens of thousands of bot-driven requests every second during high-demand events like sales or festival seasons. Bots are deployed to hoard limited-edition items, scrape pricing data, or disrupt competitor platforms.

Take the example of ticketing platforms, where scalper bots book out entire inventories within seconds, only to resell them at inflated prices leaving real users frustrated and revenue models skewed.

These attacks aren’t limited to large enterprises. Mid-sized and smaller platforms are equally vulnerable, often lacking the advanced security infrastructure needed to detect and mitigate automated threats.

Fintech and Banking: Credential Stuffing at Scale

India’s burgeoning fintech space, which boasts over 2,000 startups and 900 million digital payment users, has become fertile ground for bot attacks. One of the most common forms is credential stuffing—where bots use stolen usernames and passwords from previous breaches to gain unauthorized access to user accounts.

According to a 2024 report by Akamai, India saw a 75% year-on-year increase in credential stuffing attacks, many of which targeted mobile banking and UPI-based apps. These bots operate with staggering efficiency, sometimes launching millions of login attempts per hour from globally distributed IP addresses, making detection difficult.

Ad Fraud and Fake Traffic: The Billion-Dollar Drain

Advertisers in India are losing over ₹1,200 crore annually to bot-driven ad fraud, according to MMA Global. Bots mimic real users to generate fake ad impressions, clicks, and conversions, thereby draining marketing budgets without any real ROI.

For startups and digital-first brands, this fake engagement skews key performance metrics, distorts customer acquisition costs, and impacts long-term growth strategies.

Why Traditional Defenses Are Failing

The sophistication of modern bots is a major concern. These aren’t simple scripts anymore—they use AI and machine learning to mimic mouse movements, solve CAPTCHAs, rotate IPs, and even simulate human browsing patterns. As a result, traditional firewalls and rule-based defenses often fall short.

Moreover, the shift to cloud-native architectures and Kubernetes-based deployments introduces newer attack surfaces. Bots exploit APIs, serverless functions, and microservices requiring next-generation defenses that can operate at the application layer in real-time.

The Way Forward: Adaptive Bot Mitigation

To stay ahead, Indian enterprises must adopt a multi-layered bot management strategy that goes beyond IP blocking or rate limiting. This includes:

● Real-time behavioral analysis to detect anomalies in user behavior ● AI/ML-powered threat intelligence to adapt to new bot signatures ● Device fingerprinting and browser integrity checks

● Geo-fencing and velocity checks for login and transaction flows

As Prophaze points out, “Bot mitigation must be continuous, adaptive, and embedded within the application fabric itself—especially for cloud-native environments. Security needs to scale with infrastructure, not lag behind it.”

A Policy and Awareness Gap

India’s cybersecurity frameworks are evolving, but there is still a notable gap when it comes to regulating bot activity. Unlike the EU or US, India does not yet have a specific law addressing bot-driven fraud, making enforcement and accountability difficult.

Additionally, many organizations still underestimate the impact bots can have on business KPIs. A cultural shift is needed—where bot management is seen not just as a technical necessity but a boardroom-level priority.

Conclusion: Time to Act Before the Next Billion Goes Missing

As India accelerates toward a digital-first economy, the silent threat of bots continues to drain value from businesses across the spectrum. Whether it’s a fake click, a stolen login, or a sabotaged flash sale, the cost is real—and rising.

For a country aiming to lead the global digital economy, bot management must become a national priority in technology investment, in policy, and in executive consciousness.

Enterprises that recognize this early will not only safeguard their assets but also gain a competitive edge in a landscape where trust, speed, and integrity will define success.

The author is Lakshmi Das, Cofounder and COO, Prophaze Technologies :

Disclaimer: The views expressed are solely of the author and ETCIO does not necessarily subscribe to it. ETCIO shall not be responsible for any damage caused to any person/organization directly or indirectly.

Note: This story mirrors the purpose of the Making AI Work Summit & Awards, India’s most influential AI summit and event. It’s not just about discussion—it’s about recognition. Through the AI Awards India, we honour the pioneers, developers, and businesses showcased at the AI Summit who are applying AI to deliver real impact, proving that the future of AI is already being built today.