The Growing Problem of Digital Arrest Scams in Bharat

Getting a WhatsApp warning call of your “imminent arrest” might sound absurd, but this digital scare tactic is alarming for many, and scammers are making money using your panic. According to the recent government data available, between January and April 2024, Bharatiyas lost around ₹120.3 crore due to ‘digital arrest’ fraud. The scam is real and serious, as Prime Minister Narendra Modi noted in his monthly radio address Mann Ki Baat on 27 October. In his radio address, he has advised citizens to “Stop, Think, and Act” before reacting to suspicious calls, emphasising the importance of knowing one’s rights and verifying any threatening communication allegedly from law enforcement. The National Cybercrime Reporting Portal, under the Ministry of Home Affairs, recorded 7.4 lakh (0.74 million) complaints of digital arrest scams between January and April, compared to 15 lakh (1.5 million) such complaints registered in 2023. The portal also highlighted that citizens lost approximately ₹2,140 crore (about USD 5 million) to these scams within the first 10 months (January-October 2024) of this year.^[2] The report revealed that scammers impersonated officials from top Indian agencies such as the Enforcement Directorate (ED), Central Bureau of Investigation (CBI), Police, and the Reserve Bank of India (RBI) to trick people into transferring money to their overseas accounts. The article informs readers about the ‘digital arrest’ scam, highlights some recent cases in Bharat, and concludes with an understanding of government-led countermeasures to combat this digital menace.

What is the “Digital Arrest”?

The “digital arrest” scam is a form of online fraud where cyber criminals impersonate law enforcement or government officials to deceive victims into believing they are under a virtual arrest. Scammers often contact victims via phone or video calls, alleging that they are involved in criminal activities. They use intimidating tactics—such as deepfake videos, fake uniforms, and fabricated court orders—to create a sense of urgency. Victims are sometimes asked to stay connected on video calls for hours, isolating themselves until they comply with demands for money, ostensibly to avoid jail time or additional legal action. Typically, victims of internet fraud are older people who are not tech-savvy. However, in recent years, people of all ages and with digital knowledge from various socioeconomic backgrounds have fallen victim to cybercrime.

According to statistics, over 6,000 reports of digital arrest frauds were made in 2024, with officials blocking 6 lakh suspect phone numbers and freezing 3.25 bogus bank accounts. ^[3] The rise in these scams has also been attributed to organised crime groups operating outside Bharat, notably in Southeast Asia, mainly Cambodia, Myanmar, Thailand, and Laos. However, 30-40 per cent of these criminal activities are traced back to Bharat. ^[4] These nations have call centres in casinos operated by the Chinese, underscoring another severe problem of “digital slavery”.

Some Stories of Digital Arrest Scams

Since 2023, digital arrest scams have continued to rise, targeting victims by posing as law enforcement or government officials and threatening arrest unless immediate payments are made. Some recent cases demonstrate the severity and evolving tactics of these scams:

1. On 12 October 2023, a 23-year-old woman from Faridabad was contacted by a scammer who claimed to be a customs official based in Lucknow, alleging her involvement in a human trafficking ring. She was asked to “digitally log in” for an interrogation through Skype, during which the other associated group of scammers, posing as police officers, showed falsified evidence, including a package containing numerous ‘fake’ passports and other identification documents under her Aadhaar number. The scammers pressured her to pay Rs 2.5 lakh to avoid further action. This elaborate scheme led her to share more personal financial information before she became suspicious and disconnected the Skype call. ^[5]
2. On 13 November 2023, a Noida-based, 50-year-old woman lost ₹11.11 lakh in a ‘digital arrest’ where cybercriminals claimed a parcel in her name linked to drug smuggling. Similar to previous cases, scammers were personified as customs and police officials. In her complaint, the victim informed that she was contacted over an IVR (Interactive Voice Response) call and told that her Aadhaar card was used to buy a mobile phone SIM card in Mumbai, which was then used for unlawful activities, including harassment of women. A scammer who claimed to be a Mumbai Police officer later took over her call, conducted the ‘initial interrogation’ over the phone, and later on Skype VC.
   After that, he supplied fake documents via Skype stating that she had been charged with money laundering again in connection with (fictitious airline founder), for which a formal complaint had been filed against her, and the Supreme Court had issued an arrest warrant. Because this matter relates to “national security and will make her liable for further action,” the woman has also instructed others not to share it. ^[6]
3. On 04 March 2024, a Noida-based IT engineer lost ₹3.75 lakh after scammers posed as customs officials and claimed that a parcel in her name contained narcotic substances. Via Skype call, the scammers fabricated a “digital arrest”, intimidating her into providing personal details and transferring money to ‘clear her name’. ^[7]
4. On 01 August 2024, Dr Ruchika Tandon, an Associate Professor at the Neurology Department at Sanjay Gandhi Postgraduate Institute of Medical Sciences (SGPIMS), Uttar Pradesh, filed a complaint against unidentified scammers who posed as officials of TRAI (Telecom Regulatory Authority of India). The scammer informed her that 22 complaints had been filed against her mobile SIM card and that a CBI official over Skype would interrogate her. The ‘fake’ CBI official told her that she was accused of her involvement in a money laundering case, and her bank account was used for financing illicit activities, including women and child trafficking. ^[8] To avoid further legal consequences, the victim paid ₹2.81 Crore to scammers.
5. On 28-29 August 2024, the Chairman and Managing Director of the renowned Vardhman Group— S P Oswal, 82-year-old, was defrauded of ₹7 crore by fraudsters posing as officials from various government agencies, including the Supreme Court of India. The victim, S P Oswal, was placed under “digital arrest” for two days as a result of the tactic, which included phoney paperwork and a “fake” virtual courtroom. He was tricked into believing he was under investigation for financial violations connected to a case involving former Jet Airways chairman Naresh Goyal. Further, the scammers tricked Oswal into thinking that his identity had been stolen and that he was being investigated for a (false) bank account, which was connected to the ongoing inquiry against Goyal. ^[9]
6. On 10 November 2024, a retired engineer (70-year-old) based in Delhi lost all his life savings after he fell prey to a digital arrest scam. The fraudsters tricked him into believing that a parcel in his name contained narcotic substances and had been confiscated by customs officials. The scammers informed him that there would be legal consequences if the victim refused to cooperate. The victim, panicked and confused, followed their instructions and lost ₹10 crore in the “digital arrest” fraud that lasted approximately eight hours. The funds were transferred to numerous bank accounts given by scammers. After understanding he had been duped, the victim reported the event to authorities. The police’s cybercrime unit froze ₹60 lakh of the stolen money. Authorities are seeking to recover the remaining sum. ^[10]

These scams are highly sophisticated, leveraging technologies like video calls and fake documentation to make threats more convincing. The incidents highlight the need for vigilance and awareness among citizens, mentioning that law enforcement agencies do not conduct arrests or seek money via video calls or online platforms. A user must independently verify the caller’s identity and report the matter to authorities if contacted with such demands.

Countermeasures against Digital Arrest Scam

In response to the rise in “digital arrest” scams, the Bharatiya government has implemented several countermeasures to protect citizens from these fraudulent schemes. The Union Ministry of Home Affairs (MHA) oversees the Indian Cyber Crime Coordination Centre (I4C), which has been instrumental in monitoring and reporting cyber fraud. The I4C is a nodal point in Bharat’s fight against cyber-crime, where it collaborates with academia within Bharat and abroad in Research and Development (R&D) of new technologies and forensic utilities.

Citizens are encouraged to report incidents via the National Cyber Crime Reporting (NCCR) Portal and Cybercrime Helpline: 1930, which help officials swiftly track and respond to scam complaints. Furthermore, the I4C works on international cooperation since most cyber-criminals are based in other countries like Myanmar, Laos, and Cambodia. Additionally, the Reserve Bank of India (RBI) regularly issues alerts about financial scams, and Bharatiya banks now utilise two-factor authentication for added security in online transactions.

In its press release of 31 July 2024, the RBI proposed a draft framework on “alternative authentication mechanisms for digital payment transactions”. The press release read that—

“the Reserve Bank of India (RBI) has prioritised the security of digital payments, particularly the Additional Factor of Authentication (AFA) requirement for making payments. No specific factor was mandated for authentication, but the digital payments ecosystem has primarily adopted SMS-based OTP (One-Time Password) as AFA. While OTP works satisfactorily, technological advancements have made alternative authentication mechanisms available.” ^[11]

From a legal point of view, along with various sections of Bharatiya Nyaya Sanhita (BNS) 2023, the incidents related to digital arrest scams are covered mainly under two Sections of the Information Technology (IT) Act, 2000/2008. In Information Technology (IT) Act 2000/2008, Section 66C defines Punishment for identity theft— “whoever, fraudulently or dishonestly make use of the electronic signature, password or any other unique identification feature of any other person, shall be punished with imprisonment of either description for a term which may extend to three years and shall also be liable to fine with may extend to rupees one lakh”. ^[12] Also, Section 66D of the same Act, informs about the Punishment for cheating by personation by using computer resources; it states that “whoever, by means for any communication device or computer resource cheats by personating, shall be punished with imprisonment of either description for a term which may extend to three years and shall also be liable to fine which may extend to one lakh rupees.”^[13]

Based on the complainants’ descriptions of the scammers, Gujarat’s Surat Police issued the first sketches of nine suspects who are masterminds of the nationwide “digital arrest” scam on 13 November 2024. Four of the nine suspects were arrested by the police in the last few months. The gang allegedly stole ₹111 crore from at least 866 victims. The investigation revealed that 623 bank accounts were used for the crime across the country and linked to the same gang. ^[14]

Conclusion

The digital transformation in Bharat, fuelled by Internet penetration and the adoption of digital services, has created opportunities and vulnerabilities. Scammers increasingly leverage sophisticated techniques, such as deepfake, AI-enabled voice modulations, and spoofing official websites or phone numbers, to gain credibility and coerce victims into paying fraudulent fines or penalties.

One significant challenge in addressing this threat is the lack of awareness among the public. In many cases, people in semi-urban and rural areas are unfamiliar with digital security and fall prey to these scams out of fear of legal repercussions. A multi-pronged approach is essential to counter the growing threat of online financial scams. First, public awareness campaigns should be intensified, educating citizens about recognising and encouraging them to report digital arrest scams. Adequate training of local law enforcement on the subject and resources to tackle cybercrimes is essential.

The government, including law enforcement agencies, must collaborate with tech firms to deploy effective mechanisms to detect and counter fraudulent operations swiftly. Strengthening cyber security laws and ensuring stricter enforcement can somewhat deter cybercriminals. The fight against digital arrest scams is about technological safeguards and fostering a culture of vigilance and accountability. As Bharat continues its journey toward a digitally empowered society, ensuring the safety of its “digital” citizens in cyberspace is paramount. The threat of digital arrest scams can be effectively mitigated only through collective efforts— government action, corporate responsibility, and individual caution.

Endnotes

^[1] “PM’s address in the 115th Episode of ‘Mann Ki Baat”, Prime Minister Office, 27 October 2024, available from: https://www.pmindia.gov.in/en/news_updates/pms-address-in-the-115th-episode-of-mann-ki-baat/ [3]
^[2] Ranjan, Mukesh. “Scammers stole ₹ 2,140 crore via digital arrests in last 10 months: MHA”, The New Indian Express, 02 November 2024, available from: https://www.newindianexpress.com/nation/2024/Nov/01/scammers-stole-rs-2140-crore-via-digital-arrests-in-last-10-months-mha [4]
^[3] Singh, Jitender Bahadur. “High-level committee formed to probe digital arrest scam, take immediate action”, India Today, 30 October 2024, available from: https://www.indiatoday.in/india/story/digital-arrest-scam-centre-forms-high-level-committee-probe-cases-take-immediate-action-2625393-2024-10-30 [5]
^[4] Lal, Akshay. “Caught in a virtual web: The rise of ‘digital arrest’ scams in India”, The New Indian Express, 07 November 2024, available from: https://www.newindianexpress.com/web-only/2024/Nov/07/caught-in-a-virtual-web-the-rise-of-digital-arrest-scams-in-india [6]
^[5] Dixit, Pranav. “Cybercriminals ‘digitally arrest’ Faridabad woman, duper her of ₹ 2.5 lakh”, Business Today, 03 November 2023, available from: https://www.businesstoday.in/technology/news/story/cybercriminals-digitally-arrest-faridabad-woman-dupe-her-of-rs-25-lakh-404429-2023-11-03 [7]
^[6] PTI. “New Scam: Noida Woman ‘Digitally Arrested’, Duped of ₹ 11 Lakh”, NDTV, 02 December 2023, available from: https://www.ndtv.com/india-news/new-scam-noida-woman-digitally-arrested-duped-of-rs-11-lakh-4627048 [8]
^[7] Bhati, Divya. “Woman in Noida falls prey to digital arrest scam, was forced to pay ₹ 3.75 lakh for release”, India Today, 04 March 2024, available from: https://www.indiatoday.in/technology/news/story/woman-in-noida-falls-prey-to-digital-arrest-scam-was-forced-to-pay-rs-37-lakh-for-release-2510317-2024-03-04 [9]
^[8] TNN. “PGI doc duped of ₹2.81 Crore in ‘digi arrest’ scam”, Times of India, 15 August 2024, available from: https://timesofindia.indiatimes.com/city/lucknow/pgi-doctor-scammed-of-281-crore-in-digital-arrest-fraud/articleshow/112536972.cms [10]
^[9] Singh, Nandini. “Digital arrest and ₹7 Crore heist: how Vardhman Group head was tricked”, Business Standard, 01 October 2024, available from: https://www.business-standard.com/companies/news/digital-arrest-and-rs-7-crore-heist-how-vardhman-group-head-was-tricked-124100100832_1.html [11]
^[10] Ojha, Arvind and Himanshu Mishra. “70-year-old retired Delhi engineer duped of Rs 10 crore in digital arrest scam”, India Today, 15 November 2024, available from: https://www.indiatoday.in/cities/delhi/story/delhi-man-retired-engineer-duped-crore-digital-arrest-scam-2633687-2024-11-15 [12]
^[11] “Draft Framework on alternative authentication mechanisms for digital payment transactions”, Reserve Bank of India, 31 July 2024, available from: https://website.rbi.org.in/documents/87730/14317374 [13]
^[12] “Section 66C in the Information Technology Act, 2000”, Indian Kanoon, available from: https://indiankanoon.org/doc/118912881/ [14]
^[13] “Section 66D in the Information Technology Act, 2000”, Indian Kanoon, available from: https://indiankanoon.org/doc/121790054/ [15]
^[14] Express News Services. “First Sketches of masterminds of nationwide ‘digital arrest’ scam released”, the Indian Express, 14 November 2024, available from: https://indianexpress.com/article/cities/ahmedabad/nationwide-digital-arrest-scam-gujarat-police-9668811/ [16]

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