India to criminalise ‘digital arrest’ scams as cyber fraud losses surge

The Supreme Court of India has urged the government to formally define “digital arrest” as a separate offence and impose harsher penalties. Data presented to Parliament in July 2025 showed that Indians lost Rs 22,845 crore to cyber fraud in 2024, a 206 % increase from the previous year, with 22 lakh incidents reported. The court’s suo motu intervention followed cases where fraudsters, often impersonating senior officials from agencies such as the CBI, ED, police or Interpol, used video calls and fake documents to intimidate victims—particularly the elderly—into transferring money.

The Ministry of State for Home, Bandi Sanjay Kumar, confirmed that the government is preparing draft legislation to criminalise “digital arrest” scams. Authorities note that over 300 suspects linked to organised cyber‑fraud networks have been arrested across India, but large‑scale crackdowns have not yet deterred the practice. Officials stress the need for a multi‑pronged strategy that combines stricter laws, public awareness, and advanced fraud‑detection technology to curb the growing threat.