Indians lose over Rs 120 cr in digital arrest frauds; PM Modi cautions risk

The National Cybercrime Reporting Portal (NCRP) recorded 0.74 million digital arrest fraud complaints between January 1 and April 30 this year, following 1.5 million complaints logged in 2023

Indians lost approximately Rs 120.3 crore to ‘digital arrest’ fraud schemes during the first quarter of 2024, as per recent government data. This fraud, among other scams, was highlighted by Prime Minister Narendra Modi during his monthly radio address ‘Mann Ki Baat’ on Sunday (October 27).

 

The National Cybercrime Reporting Portal recorded 0.74 million complaints between January 1 and April 30 this year, following 1.5 million complaints logged in 2023. In 2022, 0.96 million complaints were filed, showing a significant increase from the 0.45 million recorded in 2021, according to an Indian Express report.

 

Growing concern 

In a report released in May, chief executive of the Indian Cybercrime Coordination Centre (I4C), Rajesh Kumar, provided details on cybercrime losses during this period. He mentioned Indian citizens lost Rs 120.3 crore through digital arrest scams, Rs 1,420.48 crore to trading scams, Rs 222.58 crore in investment scams, and Rs 13.23 crore in romance scams.

 

 

The Ministry of Home Affairs oversees the I4C, and its data indicate that digital arrest schemes are becoming increasingly common. About 46 per cent of the perpetrators of these frauds are believed to be operating mainly from Myanmar, Laos, and Cambodia.

 

In his address, PM Modi underscored the dangers of digital arrest fraud by sharing an audio clip of a fraudster impersonating a police officer, who instructed a victim to disclose their Aadhaar number to block a mobile number. “This audio is a serious warning, not entertainment... It illustrates the deceit involved in Digital Arrest frauds,” PM Modi cautioned.

 

 How digital arrest works

 

The scam typically begins with fraudsters notifying potential victims of a suspicious package allegedly containing illegal items. The victims are later contacted via video call by individuals impersonating law enforcement, who demand payments to ‘settle’ the issue. During these calls, victims are forced to stay connected visually, under what fraudsters term a ‘digital arrest’, until they comply with their financial demands.

 

The I4C’s data analysis for January to April 2024 shows that nearly 46 per cent of cyber frauds reported in India originated from Myanmar, Laos, and Cambodia, with cumulative losses across all fraud types amounting to an estimated Rs 1,776 crore. 

Speaking on digital arrest frauds, Akshat Khetan, founder, AU Corporate Advisory & Legal Services, said, "These scams target individuals by using fear tactics, often posing as law enforcement or government officials to pressurise citizens into compliance. To protect against these deceptive practices, every citizen should know their fundamental legal rights: first, no legitimate authority will demand immediate payments or personal information under threat. Verifying the identity of any official and requesting proper documentation is a right, not a formality."

 

Understanding digital arrest fraud

 

Digital arrest fraud involves scammers posing as officials from investigative agencies or law enforcement bodies, such as the CBI, Narcotics Bureau, RBI, TRAI, customs, or tax authorities. These fraudsters reach out to targets via audio or video calls, using intimidation to extort money while keeping them confined — often in their own homes — under the pretense of an ‘arrest.’ 

In a digital arrest, victims are coerced into remaining visible on video platforms like Skype or other conferencing tools until they comply with the scammers' demands. The fraudsters typically allege that the victim is implicated in criminal activity, such as receiving a parcel with illegal items like drugs or forged IDs, or that their phone has been used for unlawful activities. Often, these criminals even set up realistic backgrounds that mimic police stations or government offices and wear uniforms to appear more credible.

 

Sophisticated tactics, including deepfake videos, fake arrest warrants, and other falsified documents, are also used to impersonate law enforcement. In some cases, scammers claim that a close relative or friend of the victim is involved in a crime and has been detained, such as alleging that the victim’s child has been caught with illegal substances. By employing threats and intimidation, these criminals manipulate victims into transferring substantial sums, which may range from a few lakhs to several crores.  "Citizens can protect themselves by preserving records — texts, emails, calls — as digital evidence, which is critical for effective legal recourse. Moreover, reporting protocols are in place through cybercrime portals, police helplines, and banking hotlines. Ensuring quick reporting not only aids personal protection but also helps prevent future scams by alerting authorities... Stronger cyber laws are urgently needed to address and penalise these crimes adequately, yet public education remains our first line of defence. Awareness programs and media campaigns can play an instrumental role in equipping citizens to spot red flags, such as unsolicited calls asking for personal data, especially when the caller implies legal consequences. Citizens should remember that they are not obligated to provide sensitive details without verification and must always take time to confirm the legitimacy of any interaction," added Khetan.