The Supreme Court has directed WhatsApp and other digital intermediaries to apprise it of the measures they propose to introduce to prevent digital arrest scams and related cybercrimes, emphasising the need for stronger safeguards against the growing menace of online financial fraud.
A Bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice V Mohana issued the directions while hearing the suo motu proceedings in In Re: Victims of Digital Arrest Related to Forged Documents and connected matters. The Court also directed the platforms to simultaneously submit their proposals to the Indian Cyber Crime Coordination Centre (I4C).
The Bench has been monitoring the issue following instances in which fraudsters impersonate law enforcement officials, judicial authorities and government agencies to intimidate victims through telephone and video calls, often coercing them into transferring substantial sums of money under the threat of arrest or other legal consequences.
During the proceedings, the Court was informed that WhatsApp had taken action against approximately 9,400 accounts allegedly associated with digital arrest scams and impersonation of law enforcement agencies. Senior Advocate Kapil Sibal, appearing for WhatsApp, had informed the Bench that the platform would place an affidavit detailing the preventive measures undertaken. He also indicated that WhatsApp was developing software to identify suspicious accounts and alert users.
The latest directions form part of a broader judicial exercise to establish accountability across digital platforms, banking institutions and law enforcement agencies. The Court has also been examining the role of financial institutions in preventing cyber-enabled financial fraud and ensuring that victims are not left without an effective remedy.
In its earlier directions, the Bench had asked the Reserve Bank of India (RBI) to formulate a Standard Operating Procedure for banks to temporarily restrict debit transactions in accounts suspected to be linked to cyber fraud. It had also called for an effective grievance redressal mechanism and a framework to facilitate the restoration of money lost by victims.
The Court has further reiterated that RBI’s proposed regulatory framework must contain provisions requiring financial institutions to compensate victims where it is established that the fraud occurred because the institution failed to exercise the requisite due diligence in preventing or reporting the suspicious activity. Such compensation should not be less than the amount lost by the customer.
Emphasising the importance of preventive intervention, the Bench had suggested that banks should be equipped to temporarily suspend transactions that are unusual or inconsistent with an account holder’s established transaction history. Such transactions should automatically be reported to the nearest police station, followed by physical verification to establish their authenticity.
The Supreme Court has also directed the RBI to furnish a list of all authorised financial institutions before the next hearing on November 23 to facilitate the implementation of the proposed regulatory safeguards.
Separately, the Bench has sought details from law enforcement agencies across all States and Union Territories regarding FIRs registered in connection with digital arrest scams and the progress of investigations. The agencies have also been asked to submit suggestions on measures required to prevent, detect and prosecute such offences.
The Directors General of Police of all States and Union Territories have been made responsible for ensuring compliance with these directions. The information furnished before the Court is also required to be shared with the I4C.
The matter will be taken up next on November 23, 2026.
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