In a decisive move reflecting the Supreme Court’s increasing concern about the rapid growth of cybercrime in the country, it directed the Central Bureau of Investigation (CBI) on Monday to lead a national investigation into the rising issue of digital arrest scams.
The Court instructed the CBI to start by investigating cases that specifically report digital arrest frauds. The bench noted that other types of cybercrime could be addressed later, showing its intention to establish a structured national response to cyber fraud.
"Digital arrest scams require immediate attention of the premier investigating agency of the country. Therefore, we proceed with a clear direction that the CBI shall first investigate cases on digital arrests scam. The other categories of scams shall be taken up in the next stages,” the Court ordered.
Crucially, the CBI has been given full authority to investigate the role of bank officials under the Prevention of Corruption Act in cases where accounts have been opened, managed, or abused to funnel money from digital arrest schemes. This extends the investigation from just the fraudsters to include institutional complicity, which is important since scam operators usually depend on mule accounts created through lax KYC checks.
To create an effective defence system, the Supreme Court included the Reserve Bank of India (RBI) and requested thorough explanations on AI and machine-learning-based fraud detection tools being used in banks.
In a strong message to tech intermediaries, the apex court mandated all IT service providers to fully cooperate, including providing content data whenever required. This places the responsibility on digital platforms to not use data localization, privacy policies, or cross-jurisdictional hosting as excuses to delay, which investigators have pointed out as a major obstacle.
The court directed social media intermediaries to extend full cooperation to the CBI and instructed the agency to seek assistance from Interpol in cases involving cross-border dimensions, whenever required.
Since digital arrest crimes frequently cross state lines, the CBI’s authority depends on state approval. The Court specifically stated that Punjab, Tamil Nadu, Uttarakhand, and Haryana must grant permission for a nationwide CBI investigation, ensuring that investigations do not get hindered by fragmented jurisdiction.
This push for consistent action aligns with the Centre’s broader objective of centralized cybercrime monitoring, particularly as intelligence agencies report that many digital extortionists operate out of hubs in the Northeast, Jharkhand, and border regions.
The bench highlighted a concerning issue: the excessive and alarming issuance of multiple SIM cards in the same name, often using forged documents or careless verification. It has directed the Union to present a standard telecom protocol to curb SIM misuse.
At the same time, all states and Union Territories have been instructed to ensure their local cybercrime units operate effectively and to directly report any operational challenges to the Court.
The Supreme Court also indicated that CBI will probe investment and part-time job scams in the next stage.
