Digital Arrest Fraud: 21,900 Cases, ₹647 Crore Lost

More than 21,900 complaints related to digital arrest fraud, involving losses exceeding ₹647 crore, were registered across India between January 1 and August 31, 2026, according to a status report submitted by the Indian Cybercrime Coordination Centre (I4C) and the Ministry of Home Affairs (MHA) to the Supreme Court.

The latest figures highlight the continuing threat posed by digital arrest scams, in which fraudsters impersonate law enforcement officials and government authorities to intimidate victims into transferring money. The Supreme Court took suo motu cognisance of the issue in October 2025 after a senior citizen couple from Haryana reportedly lost more than ₹1 crore to fraudsters posing as officers of the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED).

The status report, filed on October 7, 2026, details measures being undertaken by law enforcement agencies, banks, telecom operators and social media platforms to prevent such fraud, improve complaint handling and facilitate the recovery of victims’ money.

These measures include a nationwide Grievance Redressal Portal, a Money Restoration Portal, proposed banking safeguards, enhanced cybercrime coordination and technological interventions aimed at identifying and interrupting fraudulent activity. The Supreme Court is scheduled to take up the matter again on October 29.

Digital Arrest Fraud in India: Complaints and Financial Losses

According to the report submitted by the I4C and the MHA, more than 21,900 digital arrest complaints involving over ₹647 crore were registered during the first eight months of 2026, from January 1 to August 31.

The Supreme Court was previously informed about the scale of cybercrime complaints in the country. Between January 1 and December 31, 2024, authorities registered 123,672 complaints involving ₹1,935 crore. In 2025, the number fell to 58,239 complaints involving ₹1,211 crore between January 1 and December 31.

The figures indicate a decline in the reported number of complaints and the amount involved in 2025 compared with 2024. However, the latest figures show that digital arrest fraud continues to cause substantial financial losses.

The report outlines the actions being taken by government agencies and financial institutions to improve responses to cybercrime complaints, trace suspicious transactions and return money to victims where possible.

Why Did the Supreme Court Take Suo Motu Cognisance of Digital Arrest Scams?

The Supreme Court took suo motu cognisance of digital arrest fraud on October 17, 2025, after receiving a letter from a senior citizen couple in Haryana who had allegedly been cheated of more than ₹1 crore.

According to the information placed before the court, fraudsters impersonated officers from the CBI and ED and kept the couple under what they described as a digital arrest. The accused allegedly used WhatsApp calls and video conferences to maintain pressure on the victims and intimidate them with forged Supreme Court orders.

The case highlighted how scammers can exploit public trust in law enforcement and the judiciary to persuade people that they are facing criminal proceedings. Victims may be told that their bank accounts or financial transactions are under investigation and that they must transfer money to comply with supposed official instructions.

In such schemes, the perpetrators use prolonged calls, threats and fabricated legal documents to prevent victims from seeking independent advice or contacting their families. The term “digital arrest” does not represent a lawful form of arrest conducted through a video call; it is a label used by scammers to create fear and pressure victims into complying with their demands.

The Supreme Court’s intervention led to directions aimed at improving coordination among authorities, strengthening the handling of complaints and examining additional safeguards to prevent such fraud.

Grievance Redressal Portal Covers 109 Banks and 1.28 Lakh Branches

A nationwide Grievance Redressal Portal (GRP), launched by the Ministry of Home Affairs in February 2026, became fully operational across the country in April, according to the status report.

As of September 30, the portal covered 109 banks and approximately 1.28 lakh branches across states and Union territories. It is intended to support the handling of complaints relating to cybercrime and cyber fraud and improve coordination between law enforcement agencies and financial institutions.

The report stated that the portal had received 93,041 grievances related to cybercrimes and cyber fraud. Of these, the concerned law enforcement agencies had acted upon 60,638 grievances.

The Supreme Court has also directed states, Union territories, state legal services committees and high courts to publicise the portal so that more people are aware of the mechanism and can use it to report fraud.

Greater awareness of reporting channels is important because timely reporting can help authorities and banks respond to suspicious transactions. The effectiveness of the system will also depend on how quickly complaints are assessed and what action can be taken in individual cases.

State Cybercrime Coordination Centres: Jharkhand Yet to Establish S4C

On August 4, 2026, the Supreme Court directed the Centre to consider establishing a State Cybercrime Coordination Centre (S4C) in every state, modelled on the Indian Cybercrime Coordination Centre, to improve coordination and accelerate action on complaints.

According to the latest status report, all states except Jharkhand had established an S4C at the time the report was submitted.

The proposed coordination structure is intended to strengthen communication and cooperation between agencies handling cybercrime cases. Digital arrest scams can involve several institutions, including local police, cybercrime units, banks, telecom operators and online platforms. Effective coordination can help ensure that information is shared and appropriate action is taken.

The report also noted that an online zero FIR mechanism for cybercrime complaints was being rolled out. Himachal Pradesh, Lakshadweep, Manipur and Nagaland had yet to operationalise the mechanism.

The e-Zero FIR system is intended to facilitate the registration of complaints without the procedural barriers that can delay the initial reporting of a crime. According to the report, the proportion of complaints registered through e-Zero FIR had increased from 2% to 8% across states and Union territories.

Money Restoration Portal Helps Recover Cyber Fraud Losses

The Money Restoration Portal (MRP), launched in April 2026, has facilitated the return of money to victims of cybercrime, according to the status report submitted to the Supreme Court.

Of more than six lakh refund or restoration requests, law enforcement agencies issued 4.69 lakh orders. These orders resulted in the restoration of ₹332.7 crore, of which ₹112.96 crore had been restored by banks to victims.

The portal is part of the broader effort to improve the process of identifying and returning money linked to cyber fraud. In digital arrest cases, scammers may persuade victims to transfer funds through banking channels, making timely reporting and coordination important for tracing transactions.

However, the figures also show that processing requests and issuing restoration orders do not necessarily mean that all the money involved has already reached victims. The report separately identifies the amount restored by banks, underscoring the importance of distinguishing between orders issued and funds actually returned.

The restoration process is one part of the wider response. Preventing transfers to fraudulent accounts, detecting suspicious transactions and enabling victims to report incidents quickly are also important elements of efforts to reduce financial losses.

RBI Considers Stronger Safeguards Against Money Mule Accounts

The Reserve Bank of India (RBI) is seeking to amend its existing instructions on the operation of bank accounts and money mules. Under the proposed approach, banks would be required to conduct due diligence and closely monitor transactions to identify accounts being used to move money obtained through fraud.

The RBI is preparing a draft standard operating procedure (SOP) to guide banks on identifying and responding to suspected money mule accounts. Such accounts can be used to receive, transfer or move proceeds from cybercrime, potentially making it harder to trace stolen funds.

According to the status report, the proposed SOP needs to be integrated with the Grievance Redressal Portal and the Money Restoration Portal before it can be operationalised.

The tentative timeline for implementation is December 2026, subject to the completion of technical development, integration, testing and other implementation requirements.

The RBI has also informed the I4C and the inter-departmental committee examining digital arrest fraud that additional measures are being considered to prevent such scams.

Delayed Transaction Safeguard Under Consideration

One of the proposals being examined is a delayed transaction safeguard, also referred to as a lagged credit mechanism. The proposal is intended to give banks an opportunity to identify potentially fraudulent transactions before the money becomes available for further movement.

According to the report, some banks have supported the initiative, while others have raised concerns about the possibility of inconvenience to customers. There are also questions about whether the measure would remain effective as fraud techniques evolve.

The RBI is examining the overall cost-benefit implications of the proposal before deciding on its implementation.

The debate highlights the challenge of designing safeguards that can interrupt fraudulent transactions without unnecessarily disrupting legitimate banking activity. Any mechanism would need to balance customer convenience with the need to prevent rapid transfers of money obtained through coercion or deception.

RBI Announces Compensation for Certain Fraudulent Electronic Transactions

The RBI issued its instructions on “Customer Protection in Fraudulent Electronic Banking Transactions” on June 24, 2026. The measures provide a compensation mechanism for certain small-value fraudulent electronic banking transactions and shorten the timeline for resolving complaints.

The instructions are scheduled to take effect from January 1, 2027. Under the new timeline, complaints involving domestic fraudulent electronic banking transactions are to be resolved within 45 days, compared with the earlier 90-day period. For cross-border fraudulent electronic banking transactions, the specified resolution period is 60 days.

The framework also provides for compensation in qualifying cases involving a genuine individual victim who reports a fraudulent electronic banking transaction with a gross loss of up to ₹50,000.

Eligible victims can receive compensation equivalent to 85% of the net loss or ₹25,000, whichever is lower. The compensation can be claimed only once during a victim’s lifetime under the stated mechanism.

To qualify, the fraud must be reported to the bank and to the National Cyber Crime Reporting Portal (NCRP), or through the cybercrime helpline 1930, within five calendar days of the occurrence.

The reporting deadline is therefore an important condition for victims seeking compensation under the framework. People who suspect that they have been defrauded should report the incident promptly to the relevant bank and the designated cybercrime reporting channels.

Banks Introduce Technology to Detect and Prevent Digital Arrest Fraud

Several banks have implemented additional technological measures to strengthen fraud prevention and improve responses to suspicious activity, according to the status report.

The interventions include UPI payee or keyword blocking, disabling mobile banking while a call is active, WhatsApp-based dispute mechanisms, in-app fraud reporting and immediate debit freezes.

Banks have also introduced enhanced due diligence workflows for beneficiary accounts that have been flagged for review. These measures are intended to help identify suspicious transactions and improve the ability of financial institutions to respond when customers report fraud.

Other measures remain under development. These include real-time alerts for bank branches when a possible digital arrest situation is suspected, behavioural biometrics, common customer risk scoring and enhanced real-time monitoring of beneficiary accounts.

Behavioural biometrics can be used to assess patterns in how customers interact with digital banking services, while risk-scoring systems can help institutions identify activity that requires additional scrutiny. The report does not provide a detailed assessment of the effectiveness of each intervention.

The range of measures reflects the need for banks to combine transaction monitoring, customer reporting tools and risk assessment to respond to fraud techniques that can change over time.

CBI Arrests More Than 49 People in Digital Arrest Cases

The Central Bureau of Investigation has been directed by the Supreme Court to investigate digital arrest cases involving fraud of ₹10 crore or more.

According to the latest status report, the CBI has arrested more than 49 people and filed charge sheets against over 140 people since December 1, 2025.

The investigation is part of the broader effort to identify and prosecute those involved in high-value digital arrest fraud. Such cases can involve coordinated activity, impersonation of public officials and the movement of money through multiple accounts.

The Supreme Court’s directions have placed particular emphasis on cases involving large financial losses, while the wider response includes complaint handling, banking safeguards, money restoration and public awareness.

Arrests and the filing of charge sheets represent steps in the criminal justice process. The outcome of individual cases will depend on the evidence and the applicable legal proceedings.

Supreme Court Examines ‘Kill Switch’ for Long Video Calls

The Supreme Court has also considered whether technology could be used to interrupt prolonged audio and video calls associated with digital arrest scams.

On August 4, the court asked the Centre to consider a suggestion from amicus curiae and senior advocate NS Nappinai for a mechanism similar to a “kill switch”. The proposed feature would automatically disconnect calls that exceed a specified duration.

According to the latest report, a similar facility has already been implemented by all major telecom service providers, with the maximum call duration set at up to 180 minutes.

However, digital arrest scams frequently involve prolonged video calls through internet-based messaging services. The Ministry of Electronics and Information Technology (MeitY) therefore held a meeting with Meta and Telegram to discuss the technical feasibility of introducing a kill-switch mechanism on their platforms.

WhatsApp and Telegram raised practical concerns about implementation while supporting the need for a graded approach, according to the report.

The proposal reflects the challenge of interrupting scammers who use long calls to isolate victims, maintain psychological pressure and discourage them from seeking help. The practical design of any such system would need to account for the technical characteristics of communication platforms and the risk of disrupting legitimate calls.

Victim Compensation and Shared Liability Proposal Under Preparation

The inter-departmental committee examining digital arrest fraud is preparing a proposal covering victim compensation and shared liability, according to the status report.

The proposal is part of the broader effort to determine how financial losses should be addressed and what responsibilities different institutions may have in preventing or responding to fraud.

Digital arrest cases can involve multiple stages, including the initial impersonation, coercion of the victim, transfer of funds and movement of money through beneficiary accounts. Addressing the problem therefore requires coordination between law enforcement agencies, banks, telecom operators and online platforms.

The report does not provide final details of the proposed compensation and shared-liability framework. Its scope and any future implementation will depend on the committee’s work and subsequent decisions by the relevant authorities.

Supreme Court to Hear Digital Arrest Fraud Matter on October 29

The Supreme Court is scheduled to take up the digital arrest fraud matter on October 29, 2026.

The latest status report outlines a range of measures intended to strengthen reporting, investigation, money recovery and prevention. These include the nationwide Grievance Redressal Portal, the Money Restoration Portal, state-level coordination centres, online zero FIR registration, proposed banking safeguards and discussions about technology to interrupt prolonged calls.

Several initiatives are already operational, while others remain under development or consideration. The proposed integration of the RBI’s SOP with the grievance and restoration portals is tentatively scheduled for December 2026, and the RBI’s new compensation instructions are due to take effect in January 2027.

The latest figures show that digital arrest fraud remains a significant concern, with more than 21,900 complaints involving over ₹647 crore registered during the first eight months of 2026.

As the case proceeds, the key issues include improving the speed of complaint handling, strengthening safeguards against suspicious transactions, recovering stolen money and ensuring that victims can access appropriate reporting and compensation mechanisms.

For individuals, awareness remains essential: genuine law enforcement authorities do not conduct arrests through WhatsApp video calls or demand money transfers as proof of innocence. Anyone who suspects a digital arrest scam should end the interaction, verify claims through official channels and promptly report the incident to their bank and the cybercrime helpline 1930 or the National Cyber Crime Reporting Portal.