Rise in digital arrest scams alarming: RBI

A top security official said that fraudsters exploit fear, convincing victims they’ve committed crimes, then posing as sympathisers to extract personal and financial details.

New Delhi: In recent times, there has been a surprising rise in ‘digital arrest’ scams, which are causing significant concern for security agencies. These scams involve cyber fraudsters posing as law enforcement officials, convincing victims that they are under investigation or have committed a crime. What makes these scammers so successful is their ability to craft believable stories, despite many of them lacking advanced education.
A top security official explained to The Sunday Guardian that the real issue lies in the fear these fraudsters create. “These criminals make you believe that you’ve committed a crime, like sending illegal advertisements or engaging in human trafficking. They then act as if they are helping the victim, creating a fake sense of sympathy, while extracting personal and financial details,” the official said.
In the second phase of the scam, victims are asked to keep their mobile cameras on as part of a ‘digital arrest,’ after which they are forced to transfer money to the fraudsters, allegedly to bail themselves out of the situation.
Many such cases originate from countries like Cambodia, Myanmar, and Laos, where large-scale operations are underway, while smaller operations are run from within India, particularly from regions like Nuh, Mewat, and Jamtara, known hubs for cyber fraud. The Delhi Police’s Intelligence Fusion and Strategic Operations (IFSO) unit has received over a dozen such complaints this year alone.
One of the primary enablers of these scams is the widespread use of mule accounts—bank accounts used by fraudsters to transfer illicit funds. “Mule accounts are key to the success of financial frauds. Around 90% of such frauds wouldn’t happen without these accounts,” a source said. Mule accounts are often opened by individuals in exchange for money, acting as intermediaries for illegal transactions. The Reserve Bank of India (RBI) has raised concerns about the proliferation of such accounts.
In response, RBI Governor Shaktikanta Das has urged banks to take action against mule accounts and to intensify efforts to educate customers about the risks of digital fraud. Das has highlighted the need for stricter monitoring and more robust security measures to prevent such accounts from facilitating financial fraud.