Supreme Court Orders Nationwide CBI Probe into 'Digital Arrest' Scam, Issues Comprehensive Guidelines

Supreme Court Mandates Pan-India CBI Investigation

In a significant move to combat the escalating 'Digital Arrest' scam, the Supreme Court of India on December 1, 2025, ordered a nationwide investigation by the Central Bureau of Investigation (CBI). A bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi issued a series of stringent guidelines for states, law enforcement agencies, and financial institutions to tackle these cyber-extortion rackets, which have collectively defrauded victims of an estimated ₹3,000 crore across the country. The court initiated these proceedings suo motu after being apprised of the widespread nature and severe impact of these scams, particularly on vulnerable citizens.

Understanding the 'Digital Arrest' Modus Operandi

The 'Digital Arrest' scam involves fraudsters impersonating officials from law enforcement agencies such as the Police, CBI, or Enforcement Directorate (ED), and even judges. They typically contact targets, often senior citizens, via phone or video calls, falsely accusing them of serious crimes like money laundering or narcotics trafficking. To lend authenticity to their threats, scammers present forged documents, fake FIRs, or fabricated court orders. Victims are then informed they are under a 'digital arrest' or 'virtual custody' and are coerced into transferring substantial sums of money into specified 'mule accounts' under the guise of verification, penalties, or safe-keeping. Some sophisticated operations have even utilized artificial intelligence to stage fake 'digital courtrooms'.

CBI Granted 'Free Hand' with Broad Directives

The Supreme Court has granted the CBI a 'free hand' to investigate these cases, prioritizing 'digital arrest' scams before moving to other forms of cybercrime. Key directives include:

• All states and Union Territories are mandated to grant consent to the CBI for investigations, overriding any previous withdrawals of general consent, to ensure a unified, pan-India probe.
• The CBI is empowered to investigate the alleged role of bankers involved in facilitating these scams by opening 'mule accounts' under the Prevention of Corruption Act.
• The central agency is directed to coordinate with Interpol for cases that extend beyond India's territorial jurisdiction, especially those originating from international 'scam hubs' in countries like Myanmar, Laos, and Cambodia.

Technological and Regulatory Measures to Counter Fraud

In addition to the investigative mandate, the Supreme Court issued directives aimed at strengthening technological and regulatory safeguards:

• The Reserve Bank of India (RBI) has been asked to explore and implement Artificial Intelligence (AI) or machine learning technologies to identify suspicious bank accounts and freeze the proceeds of crime. The court questioned the RBI on its current utilization of such advanced tools.
• Information Technology intermediaries, including social media platforms and telecom service providers, are ordered to cooperate fully with the CBI, preserving and providing data relevant to investigations.
• The Department of Telecommunications (DoT) is tasked with submitting a proposal to prevent the widespread misuse of SIM cards, a critical enabler for these fraudulent activities.
• States and Union Territories must ensure the establishment and operationalization of regional/state Cyber-Crime Coordination Centres for better coordination and effective action against cybercrimes.

The court's robust intervention underscores the gravity of the 'digital arrest' menace and signals a concerted effort to protect citizens from sophisticated cyber fraud.