In News:

The Supreme Court of India has directed the Central Bureau of Investigation (CBI) to lead a pan-India probe into rising cases of “digital arrest” scams, a form of cyber fraud involving impersonation of law-enforcement agencies. The Union government informed the Court that fraudsters have siphoned off thousands of crores of rupees, with senior citizens being frequent victims.

What is a Digital Arrest Scam?

A digital arrest is a cyber fraud where scammers pose as officials from agencies such as the police, CBI, ED, or customs authorities.

Modus Operandi

• Victims receive calls about a fake parcel, KYC issue, or alleged criminal link.
• Fraudsters use spoofed phone numbers, forged documents, and even video calls to appear official.
• Victims are threatened with arrest, passport cancellation, or frozen bank accounts.
• Under psychological pressure, victims are forced to transfer money as a “security deposit” or “fine”.

This scam combines cybercrime and psychological coercion, making it particularly dangerous.

Reasons for the Rise

• Fear-based social engineering exploiting public trust in law enforcement
• Easy access to SIM cards, mule bank accounts, and spoofing tools
• Cross-border cybercrime syndicates operating in organised networks
• Widespread adoption of digital payments (UPI, QR codes, online banking)
• Low digital awareness among vulnerable groups such as elderly citizens

Supreme Court Directions

The Court issued several key directives:

Investigation & Coordination

• CBI given nationwide jurisdiction to probe digital arrest scams.
• States directed to grant consent under Section 6 of the Delhi Special Police Establishment (DSPE) Act, 1946.
• CBI to coordinate with States, Interpol, RBI, telecom authorities, and digital platforms.

Financial Tracking

• RBI asked to explore AI and Machine Learning tools to detect suspicious money “layering” through multiple accounts.
• Banks and financial institutions to assist in identifying mule accounts.

Telecom Accountability

• The Department of Telecommunications (DoT) directed to tighten SIM issuance norms and KYC processes.
• Action sought against negligent telecom operators enabling misuse of SIMs.

Platform Responsibility

• Online intermediaries must comply with IT Rules, 2021 and provide data to investigators.

Institutional Strengthening

• States to operationalise Regional Cybercrime Coordination Centres and integrate them with the Indian Cybercrime Coordination Centre (I4C).

Scale of the Problem

• I4C has blocked over 59,000 WhatsApp accounts linked to such scams.
• Financial cyber fraud reporting systems have saved thousands of crores of rupees through timely intervention.

Challenges in Tackling Digital Arrests

• Use of advanced technologies like deepfakes, encrypted apps, and AI-generated documents
• Dark web networks supplying scam tools
• Cross-border jurisdictional hurdles
• Delayed reporting by victims due to stigma or fear
• Limited cyber forensic and policing capacity

Government Initiatives