Expressing grave concern over the escalating menace of cybercrime in India, Chief Justice of India (CJI) Surya Kant on Monday remarked that it is “shocking” to see well-educated individuals falling prey to “digital arrest” scams. The observations were made while the Supreme Court heard a suo motu case aimed at protecting victims of such sophisticated frauds.
The bench, led by CJI Surya Kant and including Justice Joymalya Bagchi, highlighted the severity of the crisis by citing a recent instance involving an elderly woman—known to the CJI in his official capacity—who was swindled out of her entire life’s retirement savings.
A “digital arrest” is a predatory form of cyber-enabled fraud where criminals impersonate law enforcement, court officials, or government personnel. Using video and audio calls, fraudsters intimidate victims, effectively holding them “hostage” digitally under the guise of an investigation, and pressure them into transferring large sums of money.
During the proceedings, the Attorney General (AG) R. Venkataramani informed the court that the government is moving “very fast” to address the issue. He requested the bench to schedule a detailed hearing for May 12, noting that high-level meetings between stakeholders have already taken place.
The Supreme Court has taken a proactive stance against what it previously described as absolute “robbery or dacoity,” referring to the siphoning of over ₹54,000 crore through digital frauds.
The court’s previous directives and the current status of the case include:
- Standard Operating Procedure (SoP): The RBI has drafted an SoP for banks that includes provisions for placing “temporary debit holds” on accounts to stop the flow of fraudulent funds. The Ministry of Home Affairs has been directed to formally adopt and implement this SoP nationwide.
- Centralized Investigation: The Central Bureau of Investigation (CBI) has been ordered to lead a unified, pan-India investigation. The court specifically directed the governments of Gujarat and Delhi to grant the necessary sanctions for the CBI to proceed.
- Technology in Banking: The court has questioned the RBI on the potential use of Artificial Intelligence (AI) to proactively trace and freeze suspicious bank accounts used by cybercriminals.
- Compensation Framework: The RBI, Department of Telecommunications (DoT), and other stakeholders have been tasked with creating a framework to compensate victims of these scams.
The bench emphasized that banks must play a “proactive role” in prevention rather than being passive observers of the fraud. Despite the apex court’s ongoing intervention, advocates present during the hearing noted that such incidents continue to be reported with alarming frequency.
The matter is now set for a comprehensive hearing on May 12, where the court will review the implementation of these safety measures.
