The Supreme Court on Thursday (Oct 29) expressed frustration over the continued rise of digital arrest scams, questioning why educated people were still falling victim to such fraud despite awareness campaigns and repeated court warnings. The bench also proposed holding banks accountable for compensating victims when failures in due diligence contribute to the fraud.&nbsp;“Hit the mobile on the wall, and the arrest goes,” Chief Justice of India Surya Kant observed while hearing a suo motu case related to digital arrests and online scams. The bench also included Justices Joymalya Bagchi and V Mohana.<h2>‘What is the fear of arrest on mobile?’</h2>Senior advocate NS Nappinai, who is assisting the court as amicus curiae, said she continued to receive reports of people being duped despite efforts to curb digital arrest scams.&nbsp;She told the bench that a woman had lost Rs 2.5 crore in such a scam last week.&nbsp;“What is wrong with these victims? How are these victims being trapped like this? Can't they understand this basic thing? What's fear of arrest on mobile?” the bench asked.&nbsp;Reacting to the incident, the CJI said, “We feel frustrated that all educated people are getting duped.&nbsp;What will you pass on to the next generation if you get digitally arrested at this age? People can go to the court's website to find if there's an order.”&nbsp;The bench also remarked, “You are victimising yourself,” questioning why people believed they could be arrested through a mobile phone.&nbsp;Also Read: <a href="https://www.wionews.com/india-news/people-will-celebrate-piyush-goyal-says-india-will-have-strong-comparative-advantage-after-us-trade-deal-1793278798694">‘People will celebrate’: Piyush Goyal says India will have ‘strong comparative advantage’ after US trade deal</a><h2>SC proposes bank compensation and prosecution</h2>The bench said banks should act as a “protective umbrella” for customers vulnerable to digital fraud. It indicated that financial institutions could be directed to compensate victims and face prosecution if lapses in due diligence enabled the scams.&nbsp;“We are proposing to direct that wherever such fraud takes place, the bank will compensate the victim and suffer prosecution. It has to be done,” the CJI said.&nbsp;The court also said victims should receive compensation for at least the amount they lost when the fraud could be linked to a financial institution's failure to carry out proper checks.&nbsp;Attorney General R Venkataramani told the bench that digital arrest cases had declined by 50 per cent following the court's intervention. He added that banks were flagging suspicious transactions and that he had held meetings with the Reserve Bank of India (RBI) on framing rules to address the problem.&nbsp;The bench asked the RBI to submit a list of all authorised financial institutions by the next hearing. It indicated that any directions could apply to all such institutions without requiring individual banks to be made parties to the case.

The Supreme Court has proposed directing banks to compensate victims of digital arrest scams and face prosecution where failures in due diligence contribute to the fraud.

The Supreme Court on Thursday (Oct 29) expressed frustration over the continued rise of digital arrest scams, questioning why educated people were still falling victim to such fraud despite awareness campaigns and repeated court warnings. The bench also proposed holding banks accountable for compensating victims when failures in due diligence contribute to the fraud. “Hit the mobile on the wall, and the arrest goes,” Chief Justice of India Surya Kant observed while hearing a suo motu case related to digital arrests and online scams. The bench also included Justices Joymalya Bagchi and V Mohana. ‘What is the fear of arrest on mobile?’ Senior advocate NS Nappinai, who is assisting the court as amicus curiae, said she continued to receive reports of people being duped despite efforts to curb digital arrest scams. She told the bench that a woman had lost Rs 2.5 crore in such a scam last week. “What is wrong with these victims? How are these victims being trapped like this? Can't they understand this basic thing? What's fear of arrest on mobile?” the bench asked. Reacting to the incident, the CJI said, “We feel frustrated that all educated people are getting duped. What will you pass on to the next generation if you get digitally arrested at this age? People can go to the court's website to find if there's an order.” The bench also remarked, “You are victimising yourself,” questioning why people believed they could be arrested through a mobile phone. Also Read: ‘People will celebrate’: Piyush Goyal says India will have ‘strong comparative advantage’ after US trade deal SC proposes bank compensation and prosecution The bench said banks should act as a “protective umbrella” for customers vulnerable to digital fraud. It indicated that financial institutions could be directed to compensate victims and face prosecution if lapses in due diligence enabled the scams. “We are proposing to direct that wherever such fraud takes place, the bank will compensate the victim and suffer prosecution. It has to be done,” the CJI said. The court also said victims should receive compensation for at least the amount they lost when the fraud could be linked to a financial institution's failure to carry out proper checks. Attorney General R Venkataramani told the bench that digital arrest cases had declined by 50 per cent following the court's intervention. He added that banks were flagging suspicious transactions and that he had held meetings with the Reserve Bank of India (RBI) on framing rules to address the problem. The bench asked the RBI to submit a list of all authorised financial institutions by the next hearing. It indicated that any directions could apply to all such institutions without requiring individual banks to be made parties to the case.

The Supreme Court has proposed directing banks to compensate victims of digital arrest scams and face prosecution where failures in due diligence contribute to the fraud.

‘Hit the mobile on the wall’: CJI Surya Kant's blunt remark on digital arrest scams

The Supreme Court of India on Tuesday (Aug 4) issued a fresh set of directions to strengthen the country’s response to the growing menace of “digital arrest” scams, asking the Reserve Bank of India (RBI) to frame a standard operating procedure (SOP) for handling mule bank accounts and directing authorities to improve cyber fraud investigations, victim compensation and money recovery mechanisms.&nbsp;The directions were issued by a bench headed by Chief Justice of India Surya Kant while hearing a suo motu case monitoring the rise in digital arrest frauds, in which fraudsters impersonate police officers, Central Bureau of Investigation (CBI) officials, judges and other government functionaries to extort money through prolonged video calls and psychological intimidation.&nbsp;Also read: <a href="https://www.wionews.com/india-news/bomb-making-note-found-at-ayodhya-medical-college-1st-year-student-detained-here-s-all-we-know-1785735824543">Bomb-making note found at Ayodhya medical college, 1st-year student detained. Here’s all we know</a>&nbsp;The bench, also comprising Justices Joymalya Bagchi and V Mohana, passed the directions after considering the fourth status report submitted by the Indian Cyber Crime Coordination Centre (I4C) under the Union Home Ministry, along with submissions by Attorney General R Venkataramani and senior advocate NS Nappinai, who is assisting the court as amicus curiae.&nbsp;Among the key directions, the apex court asked the RBI to formulate, within four weeks, an SOP for dealing with mule bank accounts that are used to launder proceeds of cyber fraud. It also directed all states to operationalise cyber fraud grievance redressal and money restoration systems to ensure victims receive timely assistance.&nbsp;The court further called for the nationwide adoption of the e-Zero FIR mechanism to enable faster registration of cyber crime complaints. It also asked the Centre to examine the feasibility of introducing a shared liability and victim compensation framework for people who fall prey to digital arrest scams.&nbsp;Also read: <a href="https://www.wionews.com/world/multiple-whatsapp-accounts-including-in-india-are-under-review-for-24-hours-here-s-why-1785818601066">Multiple WhatsApp accounts, including in India, are under review for 24 hours. Here’s why</a>&nbsp;The directions aim to address systemic gaps in cyber fraud investigations, accelerate the restoration of victims’ funds, and strengthen preventive measures against increasingly sophisticated online scams.

The Supreme Court of India directed the RBI to frame SOPs for mule accounts and ordered nationwide adoption of e-Zero FIRs and victim compensation frameworks to tackle escalating digital arrest scams.



The Supreme Court of India on Tuesday (Aug 4) issued a fresh set of directions to strengthen the country’s response to the growing menace of “digital arrest” scams, asking the Reserve Bank of India (RBI) to frame a standard operating procedure (SOP) for handling mule bank accounts and directing authorities to improve cyber fraud investigations, victim compensation and money recovery mechanisms. The directions were issued by a bench headed by Chief Justice of India Surya Kant while hearing a suo motu case monitoring the rise in digital arrest frauds, in which fraudsters impersonate police officers, Central Bureau of Investigation (CBI) officials, judges and other government functionaries to extort money through prolonged video calls and psychological intimidation. Also read: Bomb-making note found at Ayodhya medical college, 1st-year student detained. Here’s all we know The bench, also comprising Justices Joymalya Bagchi and V Mohana, passed the directions after considering the fourth status report submitted by the Indian Cyber Crime Coordination Centre (I4C) under the Union Home Ministry, along with submissions by Attorney General R Venkataramani and senior advocate NS Nappinai, who is assisting the court as amicus curiae. Among the key directions, the apex court asked the RBI to formulate, within four weeks, an SOP for dealing with mule bank accounts that are used to launder proceeds of cyber fraud. It also directed all states to operationalise cyber fraud grievance redressal and money restoration systems to ensure victims receive timely assistance. The court further called for the nationwide adoption of the e-Zero FIR mechanism to enable faster registration of cyber crime complaints. It also asked the Centre to examine the feasibility of introducing a shared liability and victim compensation framework for people who fall prey to digital arrest scams. Also read: Multiple WhatsApp accounts, including in India, are under review for 24 hours. Here’s why The directions aim to address systemic gaps in cyber fraud investigations, accelerate the restoration of victims’ funds, and strengthen preventive measures against increasingly sophisticated online scams.

The Supreme Court of India directed the RBI to frame SOPs for mule accounts and ordered nationwide adoption of e-Zero FIRs and victim compensation frameworks to tackle escalating digital arrest scams.&nbsp;

India’s Supreme Court tightens rules to curb ‘digital arrest’ scams. Inside the instructions

India's Supreme Court prompted the formation of a high-level panel on January 15, 2026, to combat "digital arrest" scams defrauding victims of over ₹3,000 crore, mainly targeting the elderly.


High-level Panel Formed in India After SC Intervention in Big Ticket Digital Arrest Scams

What are digital arrest scams? How did they become such a big menace? How can you protect yourself? 
Molly Gambhir explains on Gravitas Plus

Tackling Digital Arrest Scams: How Can You Protect Yourself? | Gravitas Plus

Karnataka accounts for more than 25% of all digital-arrest scams reported across India, with a total of Rs 109 crore lost to digital crimes in 2024 in the state alone. Watch for more details!

India: Karnataka Records Highest Number of Digital Arrest Scams | GRAVITAS