Why in News?
The Supreme Court has issued a detailed set of directions to curb digital arrest scams and strengthen the country's response to cyber fraud. It has directed the Centre, States, the Reserve Bank of India (RBI) and telecom authorities to implement measures for faster grievance redressal, time-bound recovery of money, and stronger cybercrime investigation.
Importance
- The directions aim to strengthen the fight against digital arrest scams and cyber financial fraud.
- They seek to ensure faster recovery of money lost by victims.
- The measures will improve coordination among banks, law enforcement agencies and cyber authorities.
- They will strengthen cybercrime investigation and grievance redressal across the country.
- The directions also promote greater public awareness and protection against cyber fraud.
Key Highlights
- The Supreme Court directed the RBI to prepare a Standard Operating Procedure (SOP) for identifying, freezing and managing mule accounts within four weeks.
- A mule account is a bank account used to receive, transfer or launder money obtained through cyber fraud and other illegal activities.
- Every State and Union Territory has been directed to operationalise the Cyber Fraud Grievance Redressal Module and the Money Restoration Module developed under the Ministry of Home Affairs' SOP issued on 2 January 2026.
- The Court directed all States to establish State Cyber Crime Coordination Centres within four weeks.
- States have also been directed to implement the e-Zero FIR system with the support of the Indian Cyber Crime Coordination Centre (I4C).
- The Ministry of Electronics and Information Technology, Department of Telecommunications, and Indian Cyber Crime Coordination Centre, along with tech platforms, are exploring a "kill switch" for suspicious video calls used in digital arrest scams.
- According to the I4C, complaints related to digital arrest scams declined from 1,23,672 in 2024 to 58,249 in 2025, and further to 16,377 up to 30 June 2026.
Static Facts
- Court: Supreme Court of India
- Nodal Agency: Indian Cyber Crime Coordination Centre (I4C)
- Ministry: Ministry of Home Affairs (MHA)
- RBI's Role: To prepare an SOP for regulating mule accounts.
- Cyber Reporting Portal: National Cyber Crime Reporting Portal (NCRP)
- e-Zero FIR: Enables registration of Zero FIRs for cybercrime cases across jurisdictions.
About Digital Arrest Scam
A digital arrest scam is a cyber fraud in which fraudsters impersonate police officers, CBI officials, judges or other government authorities. They falsely claim that the victim is involved in a criminal case and keep them on long video or phone calls to create fear and pressure them into transferring money.