The Supreme Court has directed the Central Bureau of Investigation (CBI) to conduct a unified, nationwide investigation into digital arrest scams amid growing concerns over senior citizens being targeted and large-scale financial fraud. The court also questioned why the Reserve Bank of India (RBI) has not deployed Artificial Intelligence tools to trace and freeze fraudulent bank accounts used in these crimes.
CBI to lead pan-India investigation
Hearing a suo motu matter based on a complaint by an elderly Haryana couple, a bench of Chief Justice of India Surya Kant and Justice Joymalya Bagchi instructed all States and Union Territories to grant consent to the CBI for probing digital arrest cases within their jurisdictions.
The court noted that fraudsters impersonating law enforcement or government officials are trapping victims on audio and video calls, holding them “digitally hostage” and extorting money. It observed that senior citizens are most vulnerable to such crimes and have lost significant amounts of their savings.
RBI asked to explain lack of AI-based detection
The bench issued a notice to the RBI questioning why AI or machine-learning systems are not being used to detect and immediately freeze accounts operated by cybercriminals. The court also said that States, UTs and police agencies, along with the CBI, are free to freeze any bank account used for defrauding citizens.
Directions to tech intermediaries, telecom operators and States
The court ordered information technology intermediaries to fully cooperate with the CBI and provide all relevant data.
It also directed the Department of Telecom to ensure telecom operators do not issue multiple SIM cards to a single user or entity, a practice that has been exploited in cyber fraud networks.
To strengthen coordination, all States and UTs have been asked to set up regional and state cyber-crime coordination centres.
Probe into bank officials, Interpol support
The bench further ordered the CBI to investigate bank employees suspected of enabling “mule accounts” used to transfer illicit funds.
The court highlighted that many cybercriminals operate from offshore tax haven countries and instructed the CBI to take support from Interpol to track such networks.
Last month, the Supreme Court expressed shock over the scale of digital arrest scams, noting that over ₹3,000 crore had allegedly been siphoned from victims, based on sealed reports submitted by the Ministry of Home Affairs and the CBI.