'What is wrong with victims': SC expresses shock how educated people getting digitally arrested

Expressing concern over the continuing menace of digital arrest scams, the Supreme Court on Thursday questioned how educated individuals were falling prey to fraudsters posing as law enforcement officials despite extensive awareness campaigns, media reports and judicial interventions.

Chief Justice of India Surya Kant expressed frustration over victims believing that they could be arrested through mobile phones, observing that people should be able to recognise such fraudulent threats.

"What is wrong with these victims? How are these victims being trapped like this? They can't understand this basic thing? What's fear of arrest on mobile?" the CJI asked.

"Hit the mobile on wall and arrest goes. Something is wrong with people. God knows what is there. What kind of person you are in democratic country if you think you are getting arrested on mobile," he remarked orally.

The observations came during the hearing of a suo motu case titled In Re: Victims of Digital Arrest Related to Forged Documents, concerning large-scale financial fraud perpetrated through digital arrest scams.

The bench also comprised Justices Joymalya Bagchi and V Mohana.

𝗖𝗝𝗜 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻𝘀 𝘃𝗶𝗰𝘁𝗶𝗺𝘀' 𝗿𝗲𝘀𝗽𝗼𝗻𝘀𝗲

Senior advocate N S Nappinai, assisting the court as amicus curiae, submitted that digital arrest fraud continued despite multiple initiatives aimed at preventing such offences.

She informed the bench that a woman had lost Rs 2.5 crore in a digital arrest scam just a week earlier, highlighting the continuing scale of financial losses.

Reacting to the submission, the Chief Justice questioned why individuals continued to believe threats of arrest communicated over mobile phones.

"They can't understand this basic thing? What's fear of arrest on mobile? Hit the mobile on wall and arrest goes. Something wrong with people. God knows what is there. You are victimising yourself," he observed.

The CJI said he found it particularly troubling that educated people were being deceived despite widespread information about such scams.

"We feel frustrated that all educated people are getting duped. What will you pass on to next generation if you get digitally arrested at this age? People can go to the courts website to find if there's an order," he added.

𝗕𝗮𝗻𝗸𝘀 𝗺𝘂𝘀𝘁 𝗽𝗿𝗼𝘁𝗲𝗰𝘁 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝘀

The Supreme Court also emphasised the responsibility of financial institutions in preventing fraudulent transactions and protecting customers vulnerable to digital arrest scams.

Describing banks as a "protective umbrella" for account holders, the bench said they should use available information and transaction monitoring systems to detect suspicious activity before customers lose their money.

Attorney General R Venkataramani informed the court that digital arrest incidents had declined by 50 per cent following judicial intervention.

He said banks had begun flagging suspicious transactions and that discussions had been held with the Reserve Bank of India to develop appropriate regulatory measures.

The bench, however, indicated that preventive measures must be supported by enforceable accountability provisions.

𝗖𝗼𝗺𝗽𝗲𝗻𝘀𝗮𝘁𝗶𝗼𝗻 𝗳𝗼𝗿 𝗳𝗿𝗮𝘂𝗱 𝘃𝗶𝗰𝘁𝗶𝗺𝘀

The Chief Justice said the court was considering directions requiring banks to compensate victims and face legal consequences where digital arrest fraud occurred because of a failure to exercise due diligence.

"We are proposing to direct that wherever such fraud takes place, bank will compensate victim and suffer prosecution. It has to be done," he said.

The bench emphasised that financial institutions must be held accountable when their negligence contributes to cyber-enabled financial crimes.

It said victims should receive compensation of at least the amount lost if an investigation establishes that the fraud resulted from a bank's failure to fulfil its due diligence obligations.

The court's observations highlighted the need for stronger public awareness alongside institutional safeguards, with the bench stressing that effective prevention requires both informed customers and accountable financial institutions.