Cyber crime is a threat to national and international socio-economic, political and security system. Cyber crime is an increasing phenomenon, not only in India but all over the world. The numerical increasing in the quantity of digital crimes is straightforwardly equivalent to the grade of growth made by a country in computer technology. The study done by agencies of the United Nations stated that almost 50 % of the sites and applications in the US, Canada and countries of European union have experienced violation of security laws and threats to the cyber security of country and cyber terrorism threats direct to authorities which threw a serious challenge before the law enforcement agencies. In this research paper, researcher has found out the lacunas in the legal system of cyber law and prominent factors which increased the Cyber crime rate in India. This research will be based on secondary sources such as legal journal, law books and Indian reports related to cyber crimes.