Prelims: Current events of national and international importance | Polity and Governance
Why in News?
Recently, Supreme Court directed banks, regulators, intermediaries, and law enforcement to jointly curb “digital arrest” scams and improve cyber‑fraud money recovery.
Digital Arrest Scam
- Modus Operandi – Cybercriminals impersonate police or government officials, threaten victims with “digital arrest,” and extort money.
- Mule Accounts – Fraudsters use bank accounts to receive and transfer illicit funds.
Supreme Court Directions
- RBI SOP – RBI to frame a Standard Operating Procedure (SOP) on mule accounts within four weeks.
- States – Directed to strengthen grievance redressal and money restoration mechanisms for cyber fraud victims.
- Centre – Asked to examine feasibility of a shared liability and victim compensation framework.
- Inter‑Departmental Committee – To consult banks and intermediaries on measures to tackle scams.
- Public Awareness – Institutions must run campaigns to educate citizens and detect fraud early.
Legal Context
- Separate Offence – SC suggested defining digital arrest as a distinct offence under criminal law with stringent penalties.
- Objective – Stronger deterrence, faster recovery, and coordinated institutional response.
Reference
Times of India | Digital Arrest Scam
