Supreme Court is deeply concerned about digital frauds

The Supreme Court of India has expressed serious concern over the sharp rise in digital frauds across the country, stating that over ₹54,000 crore has been siphoned off through cyber crimes. The court observed that such offences are not minor frauds but are equivalent to large-scale robberies.

Taking suo motu cognisance of the issue, the bench emphasised the urgent need for a robust Standard Operating Procedure (SOP) to tackle digital frauds. The Centre has been directed to prepare this SOP in consultation with the Reserve Bank of India, banks and telecom authorities within four weeks.

Referring to a Home Ministry report, the court noted that cyber frauds worth more than ₹52,000 crore were reported between April 2021 and November 2025. The Chief Justice remarked that this amount exceeds the annual budgets of several Indian states, highlighting the gravity of the situation.

The bench also raised concerns that digital arrest scams may be occurring due to negligence by bank officials or possible collusion with criminals. It questioned why AI-based monitoring systems in banks fail to flag suspicious transactions, especially when huge sums like ₹50 lakh or ₹1 crore are withdrawn from accounts of pensioners receiving minimal monthly income.

The court directed the Central Bureau of Investigation to identify digital arrest cases registered across the country. It further instructed the Delhi and Gujarat governments to immediately grant necessary approvals for CBI investigations in such cases. Additionally, RBI and telecom authorities have been asked to hold discussions to formulate a compensation mechanism for victims of digital arrest frauds.