Indians lost Rs 120.3 crore to 'digital arrest frauds' from January to April 2024

The Indian government revealed that citizens lost an alarming Rs 120.30 crore to “digital arrest” frauds in the first quarter of this year alone. Prime Minister Narendra Modi highlighted this issue during his recent address, emphasizing the urgent need for awareness and action against such cybercrimes.

According to the Ministry of Home Affairs (MHA), which oversees cybercrime through the Indian Cybercrime Coordination Centre (I4C), these digital arrests have emerged as a prevalent form of fraud, with many perpetrators operating from Myanmar, Laos, and Cambodia. An analysis of cybercrime trends from January to April showed that 46% of reported frauds, amounting to a staggering Rs 1,776 crore in total losses, originated from these three countries. The National Cybercrime Reporting Portal (NCRP) recorded 7.4 lakh complaints from January 1 to April 30, 2023, with a total of 15.56 lakh complaints logged throughout the year. This marks a sharp increase from the previous year’s 9.66 lakh complaints, reflecting a growing threat landscape.

I4C CEO Rajesh Kumar identified four major types of scams: digital arrest, trading scams, investment scams, and romance/dating scams. The losses attributed to each type were significant, with trading scams resulting in Rs 1,420.48 crore lost, followed by Rs 222.58 crore in investment scams and Rs 13.23 crore in romance scams.

In a typical digital arrest scam, victims receive a call informing them of their alleged involvement with illegal goods or contraband. Scammers often impersonate law enforcement officials, using video calls to create an illusion of authority. Victims are pressured into transferring money under the threat of arrest or further legal action, with some even being “digitally arrested,” meaning they remain visible to the fraudsters until their demands are met.

During his address in Mann Ki Baat, PM Modi stressed the importance of public awareness and provided a three-step approach for digital security: stop, think, and act. He urged citizens to remain calm and cautious, reminding them that legitimate investigative agencies do not conduct interrogations over the phone or demand money.

“The legal system does not recognize digital arrest; it is purely a fraudulent scheme,” he stated. Modi assured that various investigative agencies are collaborating with state governments to combat these scams, and the National Cyber Coordination Centre has been established to enhance coordination in addressing cybercrime.