Supreme Court Cracks Down: CBI Ordered to Launch Nationwide Probe Into Exploding ‘Digital Arrest’ Scam

Mumbai: In a major crackdown on one of India’s fastest-rising forms of cybercrime, the Supreme Court on Monday directed the Central Bureau of Investigation (CBI) to conduct a unified, nationwide investigation into all cases related to the “digital arrest” scam. Calling the issue “deeply alarming,” the bench questioned why the Reserve Bank of India (RBI) has not yet deployed Artificial Intelligence or machine-learning tools to swiftly identify and freeze accounts used by cyber criminals.

The directive was issued by a bench headed by Chief Justice of India Surya Kant and Justice Joymalya Bagchi, while hearing a suo motu case originating from a complaint by an elderly couple from Haryana—one of many senior citizens who have fallen victim to this rapidly evolving scam.

Digital arrest scams involve fraudsters impersonating police officers, government agency personnel, or court officials. Through video and audio intimidation, criminals “digitally detain” victims, often for hours, by threatening legal action and coercing them into transferring hefty sums of money. The court noted that senior citizens and vulnerable individuals are disproportionately targeted, losing their hard-earned savings to sophisticated cyber networks.

The Court directed several opposition-ruled States—including West Bengal, Tamil Nadu, Karnataka, and Telangana—to grant consent to the CBI to investigate these cases within their jurisdictions so that a coordinated national crackdown can be executed. It also issued a notice to the RBI, seeking an explanation for its failure to utilise AI systems capable of tracking suspicious transactions and freezing fraudulent bank accounts in real time.

The bench instructed all major IT intermediaries to fully cooperate with the CBI, including providing data and other relevant digital evidence. In a sign of the scam’s global reach, the court also authorised the CBI to seek technical and operational assistance from Interpol to trace cyber criminals operating out of offshore tax havens.

Further, the Department of Telecommunications (DoT) has been asked to ensure stricter regulation of SIM card issuance, specifically to prevent individuals or entities from acquiring multiple SIM cards for fraudulent operations.

To strengthen on-ground coordination, the apex court has ordered all States and Union Territories to establish regional and state-level cybercrime coordination centres. Solicitor General Tushar Mehta has been tasked with compiling views and action plans from key Union ministries—including Home Affairs, Telecom, Finance, and Electronics & IT—to present a united strategy against digital fraud.