SC Directions on ‘Digital-Arrest’ Scams

• 03 Dec 2025

For Prelims: Central Bureau of Investigation, Digital Arrest, Machine Learning and Artificial Intelligence, Indian Cybercrime Coordination Centre  

For Mains: Challenges of Rising Digital Tradecraft, Challenges to Internal Security Through Communication Networks, Cyber security

Source: TH

Why in News?  

The Supreme Court of India has given the Central Bureau of Investigation (CBI) a free hand to investigate ‘digital arrest’ scams nationwide, after the Union government reported that fraudsters had siphoned off about Rs 3,000 crore, largely from senior citizens. 

What are the Supreme Court Directions on Digital Arrest Scams? 

• Fast- Track Digital Arrest Cases: CBI authorised to investigate digital arrest first, followed by fraudulent investment and part-time job scams. 
  • SC directed all concerned states to grant consent under Delhi Special Police Establishment (DSPE) Act, 1946 to enable CBI jurisdiction. 
  • SC asked the CBI to work with INTERPOL to identify offshore cybercrime networks. 
• Financial Tracking: SC issued notice to the Reserve Bank of India (RBI) to explore use of Machine Learning and Artificial Intelligence tools for detecting money “layering” across multiple bank accounts. 
• Intermediary Compliance: Ordered digital platforms to cooperate under Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules of 2021,  and provide necessary data to investigators.  
• Institutional Strengthening: Directed states/UTs to operationalise regional cybercrime coordination centres and integrate them with Indian Cybercrime Coordination Centre (I4C). 
• Telecom Accountability: Asked the Telecom Department to propose measures for strict SIM issuance norms and better Know Your Customer (KYC) verification. 

What is Digital Arrest? 

• About:  Digital arrest is a cyber scam in which fraudsters impersonate law-enforcement agencies to extort money by creating fear and urgency. 
  • Scammers contact victims, falsely link them to criminal cases, and threaten arrest or freezing of bank accounts using spoofed numbers and fake documents. 
  • They exploit this fear to pressure victims into paying a fake fine or security deposit to avoid the fabricated legal action. 
• Menace of Digital Arrest: As of 2024, I4C has blocked over 59,000 WhatsApp accounts linked to digital arrests. 

What are the Challenges in Curtailing Digital-Arrest Scams? 

• Advanced Digital Tradecraft: Scammers use sophisticated digital tradecraft (spoofed numbers, deepfakes, fake documents, and encrypted apps) making detection and attribution difficult. 
• Powerful Social Engineering: Fraudsters exploit fear, urgency, and impersonation of agencies like CBI or ED, especially targeting senior citizens and low-awareness users. 
• Weak Cybersecurity Practices: Poor password hygiene, outdated software, and unsafe device use make it easier for scammers to access personal data and impersonate victims. 
• Rise of Digital Payments: Widespread use of Unified Payments Interface, Quick Response (QR) codes, and online banking has expanded avenues for fraud, enabling fake payment alerts, SIM swaps, and investment scams. 
• Dark Web–Driven Crime Networks: Organised groups access stolen data, malware kits, and ransomware-as-a-service on the dark web, making scams more sophisticated and coordinated. 
• Weak Laws & Enforcement Gaps: Slow investigations, limited cyber policing capacity, and cross-border jurisdiction issues allow scammers to operate with low risk and high reward. 
• Rapidly Evolving Cybercrime Techniques: Fraudsters constantly upgrade their tools—spoofed numbers, deepfakes, and AI-generated documents—to bypass security checks. 
• Slow Reporting & Stigma: Many victims hesitate to report due to embarrassment or fear, allowing scammers to operate undetected. 

What are India's Initiatives to Tackle Digital Arrest? 

• Indian Cyber Crime Coordination Centre (I4C): The I4C set up by the Ministry of Home Affairs to coordinate national cybercrime response, capacity building, monitoring, and intelligence sharing. 
• National Cyber Crime Reporting Portal: Enables citizens to report cybercrimes online, cases are forwarded to respective State/UT police for action. 
• Citizen Financial Cyber Fraud Reporting System (Helpline 1930): Allows immediate reporting of financial frauds. 
• Anti-Spoofing Measures: Department of Telecommunications (DoT) and telecom operators now identify and block international spoofed calls appearing as Indian numbers—frequently used in digital-arrest, FedEx, and impersonation scams. 
• Digital Safety Awareness: Government spreads awareness about digital arrests through SMS alerts, CyberDost social media platforms, and digital displays at airports and railway stations. 

Conclusion 

Digital-arrest scams show how rapidly cybercrime is evolving and why stronger enforcement and public awareness are essential. With coordinated action from the CBI, states, and I4C, India can better protect citizens and strengthen its digital security ecosystem. 

Drishti Mains Question: 

What is Digital Arrest? Explain how it works and why it is rising in India. 

Frequently Asked Questions (FAQs)

Q. What is a “digital-arrest” scam? 
Digital-arrest is a cyber fraud where scammers impersonate law-enforcement agencies to coerce victims into paying “fines” or “security deposits” by threatening arrest, account freezes, or passport cancellation. 

Q. What is I4C and how does it help? 
The Indian Cyber Crime Coordination Centre (I4C) (Ministry of Home Affairs) coordinates cybercrime intelligence, blocks malicious IDs/accounts, runs the National Cyber Crime Reporting Portal, and supports capacity building for state LEAs. 

Q. How can victims report digital fraud quickly? 
Victims can use the National Cyber Crime Reporting Portal (cybercrime.gov.in) or call the Citizen Financial Cyber Fraud Helpline — 1930, which enables immediate action like blocking suspicious transfers.

Summary 

• The Supreme Court authorised the CBI to freely investigate digital-arrest scams after fraudsters extorted nearly ₹3,000 crore from citizens, mainly seniors.
  
• States were directed to grant DSPE Act consent, and the CBI was asked to coordinate with INTERPOL to track global cybercrime networks. 
• Digital tradecraft, social engineering, weak cybersecurity, and rising digital payments are driving the surge in such scams. 
• India’s response includes I4C, the cybercrime reporting portal, Helpline 1930, anti-spoofing systems, and nationwide digital-safety awareness campaigns. 

UPSC Civil Services Examination, Previous Year Question (PYQ) 

Prelims

Q.1 In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the loss of funds and other benefits? (2020)    

1. Cost of restoration of the computer system in case of malware disrupting access to one’s computer    
2. Cost of a new computer if some miscreant wilfully damages it, if proved so    
3. Cost of hiring a specialised consultant to minimise the loss in case of cyber extortion    
4. Cost of defence in the Court of Law if any third party files a suit    

Select the correct answer using the code given below:  

(a) 1, 2 and 4 only    

(b) 1, 3 and 4 only    

(c) 2 and 3 only    

(d) 1, 2, 3 and 4    

Ans: (b) 

Q.2 In India, it is legally mandatory for which of the following to report on cyber security incidents? (2017)    

1. Service providers    
2. Data centres    
3. Body corporate    

Select the correct answer using the code given below:   

(a) 1 only    

(b) 1 and 2 only    

(c) 3 only    

(d) 1, 2 and 3    

Ans: (d) 

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Mains

Q. What are the different elements of cyber security ? Keeping in view the challenges in cyber security, examine the extent to which India has successfully developed a comprehensive National Cyber Security Strategy. (2022)