The Case Of 'Digital Arrest Scam': Cybercrimes In India And Its Ordeal

Introduction:

Quite recently, a famous Indian social media influencer took to the Meta platform 'Instagram' and shared his experience of falling victim to the scam of 'digital arrest', which brought light to this cybercrime that has been unfortunately operational in India and been looting citizens for many years now. 'Digital arrest' is a form of cybercrime that has been rampant in India for past many years, scamming citizens for lakhs of rupees, but it has recently garnered mass attention since the influencer has made his experience public on January 08, 2025.¹ Such cybercrimes target vulnerable people by way of threat, impersonation and fraud, costing people their life savings, mental trauma and sometimes even their life.

Any unlawful act where a computer or communication device or computer network is used to commit or facilitate the commission of crime is a Cyber crime.One of such elaborate fraud can be understood as 'Digital Arrest', as it has been recognized by Cyber-security agency Computer Emergency Response Team of India (CERT-In) as a cybercrime in which online scams are being perpetrated by fraudsters.² According to the advisory from CERT-In, "digital arrest" is an online scam where victims receive a phone call, email or message claiming they are under investigation for illegal activities such as identity theft or money laundering.³ This article shall discuss the modus operandi of this cybercrime and legal provisions against this ordeal.

Modus Operandi of 'Digital Arrest' scam:

Digital Arrest is a kind of impersonation fraud in which con-artists/impersonators use phone, text, or email to pose as police enforcement or other legal authorities such as CBI agents, income tax officers, or customs agents. The impersonators convince the victim that they are being investigated for crimes namely money laundering or drug trafficking. On asserting innocence or no knowledge of any committing any such offence, the impersonators claiming to be law enforcement officers further convince the person that their identity was stolen and misused. Thereafter, the offenders isolate the victim by holding them on a 'digital arrest'. The offenders demand many victims to be on 24×7 surveillance of the attacker via video calls to monitor them, in an attempt to break any contact from outside world, which then leads to them further demanding that the victim must make urgent payment or share sensitive personal information to fix the problem or prove their innocence, under the guise of "clearing their name" or "assisting with the investigation", while frequently threatening to arrest the person, if they do not concede to their requests. These scammers even employ strategies like fictitious digital arrest warrants or threats of impending legal action to coerce people into disclosing private information or making payments.

However, nowhere in the world is there a single legal provision that permits a "digital arrest." An arrest is a formal legal process that adheres to stringent legal procedures and necessitates the physical presence of law enforcement personnel. ⁴

Instances of 'digital arrest' and its ordeal:

There are innumerable incidents of people falling prey to the schemes of this fraud which include people from young professionals, businessmen to the vulnerable elderly. For instance:

1. In August 2024, Padma Bhushan recipient and Vardhman Group chairman S.P. Oswal was defrauded of INR 7 Cr. For two days, he was kept under digital arrest by cybercriminals who posed as CBI officers. The scammers elaborately used a Skype video call to set up a phony Supreme Court hearing with a person posing as Chief Justice of India. The scammers also used extremely convincing documents to manipulate Oswal, such as a Supreme Court case paper titled "Justice Dhananjaya Y. Chandrachud vs Shri Paul Oswal" and coerced him to undergo a 24-hour surveillance order with 70 requirements he had to adhere to, like not blocking camera views and not texting or calling without their consent, putting him on a 'digital arrest'.⁵
2. Recently in January 2025, In Madhya Pradesh, a 35-year-old teacher died by suicide after being accused by cyber fraudsters of sending illegal materials through a parcel and receiving threats of arrest. Before taking this extreme step, the victim had paid INR 27,500 to the scammers.
3. In December 2024, Cybercriminals posing as CBI and Mumbai police officials defrauded a 46-year-old woman in eastern Bengaluru of nearly INR 30 lakh, where they forced her to break three Fixed Deposits, and kept her under "digital arrest" for 11 days.⁶
4. In November 2024, a sophisticated scam involving con artists impersonating Central Bureau of Investigation (CBI) agents defrauded a 90-year-old Gujarati man. The elderly victim was tricked by the scammers into thinking he was under "digital arrest" for suspected involvement in money laundering and drug trafficking. He was ultimately forced to give the scammers more than INR 1 Cr. during the course of the scheme.⁷

According to the Ministry of Home Affairs (MHA), which oversees cybercrime through the Indian Cybercrime Coordination Centre (I4C), it was made known to the public that citizens have lost an alarming INR 120.30 crore to "digital arrest" frauds in the first quarter of 2024 alone, and as of 15.11.2024, more than 6.69 lakhs SIM cards and 1,32,000 IMEIs as reported by Police authorities have been blocked by Government of India for suspicious activities⁸ which gives an insight to the frightening rates at which this cybercrime is penetrating India.⁹ In response to an increase in "digital arrest" scams, the Ministry of Home Affairs' cyber security awareness division, also released a public advisory on October 5, 2024 cautioning people against falling for these fraudulent schemes which stated, "Don't Panic, Stay Alert. CBI/Police/Custom/ED/Judges DO NOT arrest you on video call".¹⁰

Legal provisions against 'Digital Arrest':

The IT Act, 2000 under its Chapter XI largely covers the offences that are committed with the use of modern cyber tools. In the case of victims of the 'Digital arrest' scam, the scammer can be held liable under section 66A for sending any false information for the purpose of causing annoyance and/or inconvenience, section 66C for identity theft and section 66D for cheating by personation by using computer resource. Further, certain provisions under Bhartiya Nyaya Sanhita,2023 may also extend to this particular cybercrime including Wrongful confinement to extort any property or valuable as provided under section 127, Extortion under section 308, Cheating under section 318, Cheating by personation under section 319, making a false document or forgery of record of the Court or of public register and using it as genuine, as provided under sections 335, 337 and 340 respectively, and Criminal Intimidation under section 351.

The government has been also actively taking measures for dealing with cybercrimes, specifically digital arrest, in a thorough and coordinated manner, as stated by the Ministry of Home Affairs with reference to 'Cases of Digital Arrest scams'¹¹, which include:

1. Setting up of the 'Indian Cyber Crime Coordination Centre' ('I4C') to deal with all types of cybercrimes in the country, in a coordinated and comprehensive manner.
2. Telecom Service Providers (TSPs) and the Central Government have developed a system to detect and block incoming international spoof calls that use Indian mobile numbers to look as though they are coming from India. Cybercriminals have made such international spoof calls in recent instances of FedEx scams, phony digital arrests, impersonation of police and government officials and others.
3. A Suspect Registry of identifiers of cyber criminals has been launched by I4C on 10.09.2024 in collaboration with Banks/Financial Institutions.
4. In order to improve the coordination framework among the State/UT Law Enforcement Agencies, seven Joint Cyber Coordination Teams (JCCTs) have been established for Mewat, Jamtara, Ahmedabad, Hyderabad, Chandigarh, Vishakhapatnam, and Guwahati under I4C, covering the entire nation based on cybercrime hotspots/areas having multijurisdictional issues.

However, these measures seem insufficient in the wake of rising cases of cybercrime of this nature.

Conclusion:

As of today, I4C has identified and blocked more than 1700 Skype IDs and 59,000 Whatsapp accounts used for Digital Arrest. For the aid of general public, A toll-free Helpline number '1930' has been operationalized to get assistance in lodging online cyber complaints. Additionally, a 'National Cyber Crime Reporting Portal'¹² is also established by the Government to allow the public to report incidents related to all forms of cybercrimes, with a particular emphasis on cybercrimes against women and children. Thereafter, the State/UT Law Enforcement Agencies in question handle cybercrime incidents reported on this portal, their conversion into FIRs, and any follow-up actions as per law.¹³ It is noteworthy that according to the Indian Council for Research on International Economic Relations (ICRIER)¹⁴ the digital economy of India which accounted for 4.5 per cent of India's GDP in 2014, is expected to contribute 20 per cent of the GDP by 2026.¹⁵ These numbers share the massive arena which also opens itself to the possibility of such cybercrimes.

On January 22, 2025 the hon'ble High Court Of Rajasthan has also taken suo moto cognizance of the escalating cases of digital arrest scam in India,¹⁶ issuing notice to the Centre and State government along with Director of National Cyber Forensic Laboratory, RBI governor, Director of National Payment Corporation of India, directing them to provide detailed reports on initiatives being undertaken to tackle digital arrest scam concerns, amidst the rising concerns of unsuspecting citizens falling prey to such 'sophisticated and deceptive form of cybercrime'. Thus, the need of the hour is mass awareness campaigns, and education dissemination in this regard specially to the vulnerable groups like the elderly who are adopting to modern day technologies, and rural population who has garnered a newly gained access to cyberspace. Lastly, legal awareness and civil vigilance shall carve the way for the ebb of such cybercrimes.

Footnotes

1 'Youtuber Ankush Bahuguna's harrowing tale of a 40-hour digital arrest scam', Times of India. (Jan 05, 2025)

2 'Government's cyber-security agency CERT-In issues advisory on how to fight 'digital arrest,' Imran Ahmed Siddiqui, The Telegraph Online. (Oct 28, 2024)

3 CERT-In releases advisory on online scams, recommends caution against 'pressure tactics', The Hindu. (Oct 29, 2024)

4 'India issues advisory against 'digital arrest': Understanding the scam and how to protect yourself', Akanksha Upadhayay, CNBC TV. (Oct 28, 2024)

5 'A Call, Digital Arrest, Rs 7 Crore Transferred: How Vardhman Boss Was Duped', M.S. Sengar, NDTV. (Oct 01, 2024)

6 'Under digital arrest for 11 days, Bengaluru woman breaks three FDs to pay fraudsters Rs 30 lakh', Deccan Herald (Dec 23, 2024)

7 'Crores lost to 'digital arrest' scam: Here's how to avoid falling victim', Nandini Singh, Business Standard. (Nov 30, 2024)

8 'Cases of Digital Arrest Scams' public statement issued by Ministry of Home Affairs, through Minister of State for Home Affairs, Shri Bandi Sanjay Kumar in a written reply to a question in the Rajya Sabha (at Point iv). (Nov 27, 2024)

9 'Digital arrest fraud: Indians lost Rs 120 crore from Jan- Apr 2024' Financial Express (Oct 28, 2024)

10 'CBI, ED, police don't arrest people through video calls: Indian Cyber Crime Coordination Centre', Press Trust of India. (Oct 06, 2024)

11 Supra at 9.

12 National Cyber Crime Reporting Portal at https://cybercrime.gov.in

13 'Digital Arrest Scam' public statement issued by Ministry of Home Affairs (at point iii), through Minister of State for Home Affairs, through Shri Bandi Sanjay Kumar in a written reply to a question in the Lok Sabha. (Dec 10, 2024).

14 'India to become $1 trillion digital economy by 2028', The Economic Times. (Oct 02, 2024)

15 'Digital economy to contribute 20% of GDP by 2026: Rajeev Chandrasekhar', Business Standard. (Dec 07, 2024)

16 Suo Moto- In the matter of tackling the issue of Digital Arrest Scams v. Union Of India, C.W. No. 1311/2025 at Hon'ble High Court of Rajasthan at Jaipur.

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