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Picture Courtesy:  THE HINDU

Context

The Supreme Court directed the Central Bureau of Investigation (CBI) to launch a comprehensive, pan-India investigation into the escalating menace of 'digital arrest' scams.  

What is 'Digital Arrest' Scams?

A 'digital arrest' is a form of cyber extortion where fraudsters impersonate officials from law enforcement agencies like the CBI, Police, or Enforcement Directorate, or regulatory bodies like the RBI. 

They trap victims by creating a sense of panic and urgency through fabricated criminal charges.

• Modus Operandi: Scammers accuse victims of being involved in serious crimes (e.g., money laundering, drug trafficking) and threaten immediate arrest.
• Coercion Tactics: They force the victim to stay on a video call (like Skype or WhatsApp), isolating them from family and legal counsel. This psychological pressure prevents them from verifying the claims.
• Extortion: The fraudsters then demand large sums of money to “settle” the fake case or to verify the victim's funds.

The surge in cybersecurity incidents from 10.29 lakh in 2022 to 22.68 lakh in 2024 reflects the growing scale and complexity of digital threats in India. (Source: PIB)

As of February 2025, the National Cyber Crime Reporting Portal (NCRP) has received reports of cyber fraud totaling ₹36.45 lakh. (Source: PIB)

Supreme Court Intervention

The Supreme Court directed the CBI to investigate 'digital arrest' scams and associated mule accounts, granting the agency a "free hand" to probe cybercrime-linked accounts.

Key Reasons for Choosing CBI

Inter-State & International Jurisdiction: The CBI is equipped to investigate crimes that span multiple states and countries, which is a common feature of digital arrest scams originating from call centers in Southeast Asia.

Central Coordination Role: The SC appointed the CBI as the nodal agency to streamline intelligence sharing and joint operations among state police, central agencies (CERT-In), and financial institutions.

Resource Superiority: The CBI has better technical and forensic capabilities to handle complex digital evidence and trace money trails across borders. 

India's Institutional Framework Against Cybercrime

India has a multi-layered framework to combat cyber threats, led by the Ministry of Home Affairs.

Challenges in Tackling Digital Arrest Frauds

Technical Challenges

• Use of encrypted communication apps and VoIP (Voice over Internet Protocol) calls makes it difficult to trace the origin of the fraud.
• Scammers often operate from foreign territories like Cambodia, Myanmar, and parts of China, making jurisdiction a major hurdle.
• Use of spoofed numbers and IP addresses to mask their identity.

Administrative Challenges

• Slow response time from banks and financial intermediaries in freezing fraudulent accounts allows criminals to withdraw funds quickly.
• Lack of adequate training and technical infrastructure at the district and local police station levels.
• Poor coordination between different state police forces and central agencies remains a persistent issue.

Legal Challenges

• The term “digital arrest” is not explicitly defined in law, creating a legal grey area.
• The process of seeking cross-border legal assistance through Mutual Legal Assistance Treaties (MLATs) is often time-consuming.
• Absence of a robust data protection law hinders access to crucial data for investigation.

Way Forward

Strengthening India's defense against these scams requires a combination of policy reforms, institutional capacity building, technological upgrades, and public awareness.

Policy Reforms

• Amend the Information Technology Act, 2000 to include clear definitions and stricter punishments for impersonation-based cyber extortion.
• Strengthen KYC (Know Your Customer) norms for issuing SIM cards and opening bank/wallet accounts to prevent the creation of mule accounts.

Institutional Reforms

• Establish dedicated cybercrime units in every district with trained personnel.
• Create a real-time dashboard connecting CBI, state police, CERT-In, and all major banks for instant freezing of accounts and blocking of fraudulent numbers.

Technological Reforms

• Deploy AI and Machine Learning-based tools to analyze call patterns and transaction data to proactively flag suspicious activities.
• Develop a shared, real-time blacklist of fraudulent phone numbers, UPI IDs, and bank accounts accessible to all stakeholders. 

Conclusion

The Supreme Court has expanded the CBI's authority to combat cybercrime, emphasizing that tackling these borderless digital offenses requires centralized coordination, strong inter-agency cooperation, rapid technological adaptation, and public awareness to ensure a secure digital India.

 Source: THE HINDU