Digital Arrest Scams: Supreme Court Unleashes CBI – Is Your Money Safe?

Syllabus: Statutory, regulatory and various quasi-judicial bodies.

Context

• The Supreme Court directed the CBI to lead a nationwide investigation into rising ‘digital arrest’ cyber frauds.
• Court intervention came after Centre reported ₹3,000 crore losses, largely affecting senior citizens.

Key Directions of the Supreme Court

• The Bench of CJI Surya Kant and Justice Joymalya Bagchi held that digital arrest scams need urgent, centralised investigation.
• The Court gave the CBI a “free hand” to crack the network of scammers and associated corruption.
• It asked the CBI to prioritise digital arrest scams first, followed by fraudulent investment scams and fake part-time job scams.
• It directed 13 States (including Tamil Nadu, Kerala, Karnataka, Maharashtra, West Bengal, Bihar, Rajasthan, etc.) to grant consent under Section 6, Delhi Special Police Establishment Act.

Investigation Framework

• The CBI must identify State police officers and domain experts to assist a pan-India probe.
• Court asked the CBI to coordinate with Interpol to trace cyber havens abroad.
• The RBI must explain how AI/ML tools can track complex money-layering patterns through mule accounts.
• Under the IT Intermediary Rules, 2021, digital platforms must provide all required data support.

Strengthening Cybercrime Response

• States/UTs must operationalise regional cybercrime coordination centres linked to I4C for data consolidation and early-warning systems.
• Telecom operators were criticised for negligence in SIM issuance, enabling multiple SIMs under the same identity.
• DoT must propose measures to prevent SIM misuse.

Significance

• Marks a shift towards centralised, technology-driven cybercrime enforcement.
• Addresses vulnerabilities of senior citizens frequently targeted by online fraud networks.