Supreme Court orders pan-India CBI probe into 'digital arrest' scam

The Supreme Court on Monday (December 1) instructed the Central Bureau of Investigation (CBI) to conduct a comprehensive pan-India investigation into cases related to the digital arrest scam. Additionally, it also asked the Reserve Bank of India (RBI) the reason for not utilising artificial intelligence in identifying and freezing bank accounts associated with cyber criminals.

Digital arrest represents an increasing type of cybercrime where perpetrators impersonate law enforcement, court officials, or representatives from government agencies to coerce victims via audio and video calls. They effectively take the victims hostage and exert pressure on them to make financial payments.

SC bench asks states to cooperate

A bench of Chief Justice of India Surya Kant and Justice Joymalya Bagchi asked the states, including West Bengal, Tamil Nadu, Karnataka and Telangana, to accord assent to CBI for probing digital arrest cases in their jurisdiction.

Also read: ‘Digital arrest’ fraud: Delhi Police nabs 6 in Lucknow

It issued a notice to the RBI and sought its response as to why AI or machine-learning technology was not employed to freeze bank accounts used in cyber fraud cases.

The top court, which passed the directions in a suo motu case registered on the complaint of an elderly couple from Haryana, noted that mostly senior citizens were targeted by cyber criminals and their hard-earned money was extorted.

It directed Information Technology intermediaries to provide details and cooperation to CBI in probe related to digital arrest cases.

The bench also directed the CBI to seek assistance from Interpol to reach cyber criminals operating from offshore tax haven countries.

Also read: SC on ‘digital arrests’: Determined to deal ‘with iron hands’

It asked the telecom department to ensure that telecom service providers do not provide multiple SIM cards to one user or entity, which may be used in cybercrimes.

To ensure better coordination with the CBI, the bench asked all states and Union Territories to set up a regional and state cybercrime coordination centre to deal with such online offences.

Top court seeks ministries' views

It asked Solicitor General Tushar Mehta to ensure the views of various central ministries, including the home ministry, telecom department, finance ministry and electronics and information technology ministry, are put before it to deal with cybercrime cases.

The top court said all states and UTs and their police agencies, along with the CBI are free to freeze bank accounts used in defrauding citizens.

At the outset, the bench directed the CBI to probe bank officials who are hand-in-glove and help in operating mule accounts with fraudsters in duping citizens.

Also read: Digital arrest scam: Bengaluru techie loses Rs 11.8 crore; govt blocks 1,700 Skype IDs

A mule account is a bank account in some other names used by cyber criminals to receive and transfer illicit funds, making it harder to trace the original source of the money for the probe agencies.

On November 3, the apex court said it needs to deal with digital arrest cases with an iron hand as it expressed shock over the scale of such cybercrime cases in the country, with over Rs 3,000 crore allegedly extorted from victims, including senior citizens.

(With Agency inputs)