Rising Threat of 'Digital Arrest' Scams: ₹3,000 Crore Fraud Exposed, Supreme Court Warns of National Crisis

New Delhi, November 5, 2025 — India is facing a growing cybercrime crisis as fraudsters exploit the concept of “digital arrest” to deceive and extort citizens. According to a report presented before the Supreme Court, scams under this scheme have already caused financial losses exceeding ₹3,000 crore, with senior citizens emerging as the most frequent victims. The court has described the situation as both an economic and social emergency, directing the central government to take immediate and stringent measures to counter these digital crimes.

Supreme Court Takes Serious Note

During a recent hearing, a bench led by Justice Surya Kant highlighted that cyber fraud cases related to “digital arrest” have surged alarmingly in recent months. Fraudsters often impersonate law enforcement officers or government officials, intimidating victims with false claims of involvement in criminal activities. Under pressure, victims are coerced into transferring large sums of money to avoid supposed legal trouble.

Justice Kant expressed deep concern over the trend, calling it a “grave human and social issue beyond mere financial loss.” The bench emphasized that the exploitation of fear, especially among elderly individuals, represents a direct attack on public trust and safety in the digital age.

Court to Issue Tough Orders

The court stated it would soon pass strict directives to strengthen law enforcement capabilities and improve coordination between investigative agencies. Solicitor General Tushar Mehta acknowledged that the scale of these scams is “far greater than initially anticipated” and warned that, without decisive action, the problem could escalate further.

According to Mehta, the government is preparing a multi-layered framework to detect and dismantle these organized cyber networks, which operate with sophisticated digital tools and international connections.

Possible CBI Probe Under Consideration

The Supreme Court has also hinted at referring certain cases for investigation by the Central Bureau of Investigation (CBI). Previous reports have revealed that some scammers impersonate judges and police officers during live video calls, showing forged court documents and threatening arrest to extort money.

Government sources informed the court that many of these operations are run from across the border, linking directly to money laundering syndicates and international cybercrime rings. The court has asked for a detailed progress report on ongoing efforts to trace and prosecute the masterminds behind such scams.

Deepfake and AI Used to Create Fear

One of the most alarming aspects of these scams is the use of advanced artificial intelligence (AI) and deepfake technology. Fraudsters use these tools to create realistic-looking videos resembling police stations or courtrooms. During video calls, victims are tricked into believing they are communicating with genuine authorities.

In several instances, scammers have also lured people by offering fake job opportunities or threatening them with fabricated criminal cases. Once trust or fear is established, victims are forced to make immediate digital payments to avoid “digital arrest.”

A Financial and Social Menace

The Supreme Court warned that the consequences of these scams extend far beyond monetary losses. Many victims—particularly older adults—suffer from severe emotional distress, anxiety, and social isolation after being duped.

“The menace of digital arrest scams has grown into a national challenge,” the bench remarked. “It is not only draining citizens’ life savings but also eroding confidence in the country’s digital infrastructure.”

The court urged both the central and state governments to collaborate on a comprehensive national strategy that includes stronger cybersecurity frameworks, public awareness campaigns, and swift law enforcement action against cyber offenders.

A Call for Awareness and Vigilance

Experts emphasize that public awareness remains the first line of defense. Citizens are advised never to respond to unknown calls claiming to be from police, tax, or investigative authorities, and to verify all communications through official government channels.

As India accelerates toward digital transformation, the rise of such cyber scams poses a major challenge. With the Supreme Court’s intervention, the hope is that stronger laws, better coordination, and enhanced digital literacy can finally put a stop to the growing threat of “digital arrest” frauds.