How Digital Arrest Scams Work and Why MHA’s Kill Switch Could Be a Game-Changer

Digital arrest scams don’t hack devices, they weaponise fear.

By impersonating law enforcement and staging virtual custody, fraudsters have siphoned off thousands of crores. Now, the government’s proposed Kill Switch could finally slow the surge.

Here’s how digital arrest works, why it has exploded, and how India plans to fight back.

What is a digital arrest scam?

Digital arrest is a form of cyber fraud in which criminals impersonate officials from agencies such as the CBI, ED or local police and place victims under fabricated “virtual custody” through video calls. Using forged documents, official-sounding threats and AI-generated police station backdrops, scammers force victims to transfer money immediately.

How big is the digital arrest problem in India?

Enormous and escalating. Business Standard reported losses of over ₹19,000 crore in 2025, making digital arrest India’s third-largest fraud category by financial damage. Recent cases include a retired banker losing ₹23.5 lakh, a Delhi couple defrauded of ₹14 crore, and industrialist S.P. Oswal losing ₹7 crore within two days.

What is the Kill Switch, and what is India planning?

A financial Kill Switch allows instant freezing of bank accounts, cards and digital wallets when fraud is suspected. The Indian Cyber Crime Coordination Centre (I4C) told an MHA committee that standard operating procedures for instant blocking are under final consideration. RBI has also said its SOPs for freezing suspicious bank accounts are in advanced stages.

How do digital arrest scammers operate?

The fraud typically begins with a call claiming the victim’s Aadhaar, passport or courier parcel is linked to money laundering or drug trafficking. Victims are then shifted to video calls with fake officers seated in highly realistic, AI-generated police stations. Scammers isolate victims on camera for days, cut off family contact and pressure them into repeated bank transfers.

Who is most vulnerable to digital arrest scams?

Professionals aged 40 to 60 with significant savings are prime targets, including NRIs. A 2025 Lowy Institute survey found India’s high trust in government authority makes citizens particularly vulnerable to impersonation-based fraud.

What action has the Supreme Court taken on digital arrest scams?

On December 1, 2025, the Supreme Court directed the CBI to lead a pan-India probe into digital arrest frauds. The CBI was empowered to freeze bank accounts without FIRs and investigate bankers under the Prevention of Corruption Act for opening mule accounts. RBI was also instructed to deploy AI and machine learning tools to detect suspicious accounts automatically.

What is the MHA committee examining?

On January 16, 2026, the MHA informed the Supreme Court that it formed a high-level inter-departmental committee chaired by the Special Secretary (Internal Security). The panel includes officials from RBI, CBI, NIA and I4C and is examining instant transaction blocking, victim compensation, and fraud insurance mechanisms, including holding banks and telecom companies liable in cases of negligence.

Where do digital arrest operations originate from?

I4C analysis shows 45–46% of digital arrest operations originate from Southeast Asia, particularly Cambodia, Myanmar, Laos, Thailand and Vietnam. INTERPOL data reveals 74% of human trafficking victims were taken to scam centres in the region. Another 30–40% of such frauds have been traced back within India.

How can you protect yourself from digital arrest scams?

No Indian law enforcement agency conducts investigations via WhatsApp, Zoom or Skype. Never share OTPs, avoid downloading remote-access apps like AnyDesk, and immediately disconnect any call demanding constant video monitoring. Report suspicious calls to the 1930 cybercrime helpline without delay.

What should you do if you are targeted?

Disconnect the call immediately and inform family members. Contact your bank to freeze accounts if any information has been shared. File a complaint on cybercrime.gov.in at once—early reporting during the “Golden Hour” can help intercept funds. MHA-approved SOPs also allow faster refunds for fraud cases below ₹50,000.

(With inputs from yMedia)