Supreme Court orders crackdown on digital arrest scams, setting up of panel

The Supreme Court on Tuesday ordered a crackdown on digital arrest scams and issued a number of directions for strengthening the fight against cyber fraud. The apex court also asked the Reserve Bank of India (RBI) to prepare and circulate a standard operating procedure for bank accounts linked to cybercrimes and directing states and Union Territories to speed up grievance redressal and money recovery mechanisms for victims.

A bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana also asked the Centre to set up an Inter-Departmental Committee for consult banks and financial intermediaries on ways to prevent digital arrest scams and help recover the defrauded money to victims.

The bench was hearing a suo motu matter, ‘In Re: Victims of Digital Arrest Related to Forged Documents.'

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SC tells RBI: Prepare SOP on cyber fraud, mule accounts

The Supreme Court directed the Reserve Bank of India to prepare and circulate an SOP for dealing with bank accounts linked to cyber frauds, including mule accounts.

It also asked the RBI to provide copies of the SOP to the Registrars General of all high courts, allowing the guidelines to be made available across the judiciary.

States, UTs told to act on grievance, money recovery

The court directed all states, Union Territories and law enforcement agencies to ensure the expeditious adoption and operationalisation of grievance redressal and money restoration modules developed for victims of cyber-enabled financial frauds.

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The top court also asked states and UTs to increase public awareness about these grievance redressal and money restoration mechanisms so that citizens know where and how to seek help after being duped.

The Registrars General of all high courts were directed to apprise courts about the grievance redressal and money restoration modules, ensuring that victims are made aware of the remedies available to them.

Court asks for state-wise, bank-wise fraud data

Seeking greater accountability in the handling of cyber fraud complaints, the Supreme Court asked the authorities to submit a report providing state-wise and bank-wise details of grievances registered and disposed of under the cyber fraud redressal mechanism.

The data will provide a view of how complaints are being handled across states and banking institutions.

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The bench also directed authorities to take steps to ensure the expeditious disposal of matters relating to the freezing of bank accounts in cases involving cyber fraud investigations.

The directions come a week after the apex court suggested that the Centre consider formally defining “digital arrest” in criminal law and treating it as a standalone offence carrying stringent punishment.