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Come up with steps to prevent ‘digital arrest’ scams, Supreme Court tells Centre
Digital arrest scams are a sophisticated form of cyber fraud in which criminals impersonate law enforcement officers, intelligence officials, or even judges
NEW DELHI: The Supreme Court on Tuesday directed the Centre to “immediately” consider measures to plug gaps and prevent “digital arrest” scams, and to enable phone apps or other security features to flag suspicious transactions.
“We wish we were wrong, but a staggering amount has been taken away from India which is very shocking. There are some suggestions made by the amicus curiae. We have no reason to doubt that the stakeholders, under the guidance of the Attorney General, shall not take appropriate decisions at their end and apprise this court,” a bench comprising Chief Justice of India Surya Kant and justice Joymalya Bagchi said.
Digital arrest scams are a sophisticated form of cyber fraud in which criminals impersonate law enforcement officers, intelligence officials, or even judges to coerce and extort money from victims, particularly senior citizens, using forged court orders and fake proceedings.
The top court will take up the case in the second week of January.
At Tuesday’s hearing, the bench examined some suggestions given by senior advocate NS Nappinai, who was assisting the court as amicus curiae, and asked the Centre to also consider a victim compensation scheme.
Some suggestions could be immediately enforced such as the introduction of apps and safety measures, the bench said, referring to her suggestion that social media intermediaries deploy artificial intelligence (AI) and machine learning tools to “identify and take down fraudulent accounts offering mule accounts or crime as a service”. It also proposed deployment of tools that stop video calls that continue for more than a stipulated period of time”. It stated that such a cap could be built into WhatsApp, Telegram, or similar platforms.
The bench also referred to the role of banks. “The lapse on part of the bankers that results in loss by fraud would amount to a deficiency of service,” it said.
On December 1, the Supreme Court entrusted the Central Bureau of Investigation (CBI) with investigating all cases of the digital arrest scam and authorised the agency to examine the role of bankers in failing to detect such crimes.
The bench reiterated its concern on Tuesday, underscoring that when the first event occurs, the banks should raise an alarm. The amicus curiae had also suggested that the Reserve Bank of India (RBI) develop “fraud detection tools” that raise red flags to identify excessive withdrawals within a short period.
Similarly, Nappinai recommended that telecom service providers (TSP) be liable for fraud or negligence and that every violation of instructions issued by the telecom department should attract a penalty. The money collected from the penalties could be used to compensate the victims in addition to legal provisions for release of property seized by police.
Attorney General R Venkataramani, who appeared for the Centre, said there were gaps in the system which needed to be fixed and sought time to consider Nappinai’s suggestions.
“There are gaps which need to be tied together. An inter-departmental meeting will take place. Instead of addressing the issue in a piecemeal and isolated manner, we will undertake the exercise as various proposals are under active consideration of the committee having all stakeholders,” Venkataramani said.
Nappinai also emphasised the need to ensure that consumers are informed, in real time, of the number of SIMs issued in their name.
While the National Cyber Reporting Platform (NCRP) is currently the only platform for reporting cyber fraud, the amicus suggested that digital arrest cases could be reported separately and that speedy action be taken to freeze the proceeds of crime within banking channels upon receipt of complaints.
The court also allowed CBI to approach the court for getting any orders that would help “timely and effective” investigation.
