New Delhi: The Supreme Court on Monday handed the Central Bureau of Investigation (CBI) the responsibility of conducting a countrywide investigation into the fast-growing “digital arrest” scam, directing all States and Union Territories — including those governed by Opposition parties — to grant the agency consent to operate within their jurisdictions.
“Digital arrest” schemes have surged nationwide, with fraudsters impersonating police officers, judges, or government officials through audio and video calls to terrorise victims into transferring money. Senior citizens have been disproportionately targeted, the court noted, citing multiple instances of intimidation and extortion.
CBI to lead unified national investigation
A Bench of Chief Justice Surya Kant and Justice Joymalya Bagchi ordered a consolidated probe to eliminate fragmented state-level investigations that the court said were hampering results. The suo motu proceedings stem from a complaint filed by an elderly Haryana couple who were defrauded by scammers posing as enforcement officials.
The Bench further directed the CBI to work with Interpol to track perpetrators operating from foreign jurisdictions and offshore tax havens. Investigators have been instructed to specifically identify bank officials suspected of enabling “mule accounts,” which criminals use to mask the trail of illicit funds.
Supreme Court questions RBI on AI: “Why not freeze accounts faster?”
Issuing notice to the Reserve Bank of India, the court asked why the central bank has not deployed AI or machine-learning tools to automatically detect and freeze accounts linked to cyber-fraud patterns. It observed that quicker intervention could prevent serious financial loss to vulnerable citizens.
The judges also emphasised that all States and UTs, alongside the CBI, are free to freeze suspicious accounts without waiting for additional clearances.
Directions to tech platforms and telecom sector
The court instructed major technology intermediaries to cooperate fully with investigators and furnish all relevant data relating to digital-arrest cases. It also asked the Department of Telecommunications to ensure telecom operators do not issue multiple SIM cards to a single user or entity — a loophole often exploited by scammers.
Cybercrime coordination centres statewide
To streamline information-sharing, all States and Union Territories have been told to establish regional and state-level cybercrime coordination centres that will work directly with the CBI. The court asked Solicitor General Tushar Mehta to collate inputs from the Home Ministry, Finance Ministry, Department of Telecom, and Ministry of Electronics & IT for developing an integrated response to cybercrime.
A growing national threat
The Bench underscored the urgency of the crisis, recalling its earlier remarks on November 3, when it expressed alarm over the ₹3,000-crore scale of such scams. Two sealed-cover reports submitted by the CBI and the Home Ministry were reviewed during that hearing.
Calling for strong measures, the court said digital-arrest crimes must be confronted “with an iron hand” and emphasised that public trust in digital services cannot be compromised by unchecked fraud.
