Reserve Bank of India Governor Sanjay Malhotra has strongly warned the public about the growing prevalence of digital arrest scams, urging people, particularly senior citizens, to be extra cautious and avoid being duped by these sophisticated cyber frauds. In a digital arrest scam, the fraudsters pose as government officials from agencies like the CBI, Customs, Enforcement Directorate, or Police and claim that the victim has committed a serious financial offence, and they are now being digitally arrested. Scammers create an environment of fear and anxiety to extract the money for which they ask for “bail” or “verification fees” and firmly advise the victim not to contact real enforcement agencies or the family members.
The RBI Governor noted that India has rapidly digitized, and the digitalization of even rural areas has allowed for caution to avoid making people prey to such scams. The organization also advised banks to upgrade their fraud monitoring systems and collaborate with mobile operators to shut down fake SIM cards and WhatsApp accounts used by con artists.
In view of these guidelines and other notices on the subject, RBI had also iterated that the victims should not panic or share any of their personal information, financial information, OTP, password or bank credentials, etc., as there is no provision of “Digital Arrest” and such calls are purely a scam to recover an unjustified amount from them. All concerned government authorities, including the RBI and police, have also taken suitable action, which included identifying multiple Lakh SIM cards and IMEI numbers used in the subject case and blocking most SIM cards and IMEI numbers used in the crime.
Victims have told stories of scammers using video calls while wearing fake official uniforms and settings to scare them into sending them a lot of money. In a few cases, older people were kept on the phone alone and pressured to send money, but quick police action has stopped some of these cases from resulting in significant financial losses.
RBI says the following to stay safe:
1. Don’t worry or panic about any “digital arrest.”
2. Don’t ever give out your personal or banking information over the phone or in text messages.
3. Don’t send money or make payments to accounts you don’t know.
4. If you get a call that seems strange, tell the cybercrime authorities (cybercrime.gov.in) or call 1930.
The RBI is also working on technologies like the Digital Payment Intelligence Platform (DPIP), which will help detect and prevent fraud in real-time. The central bank remains committed to prioritizing customer safety, even as technology advances and cyber threats escalate. It instructs fintech companies to develop systems that are both secure and easy to use.
This digital arrest scam is just one example of the growing amount of digital fraud in India. Regulators and law enforcement are collaborating to safeguard individuals and maintain their trust in the digital financial system.