The Supreme Court has asked WhatsApp and other intermediaries to tell it what they will do to stop “digital arrest” scams and related cybercrimes. In the same order, it said banks must compensate victims, at least the full amount lost, where the fraud happened because the bank failed in due diligence. The order was passed on 29 October 2026 in the suo motu case In Re: Victims of Digital Arrest Related to Forged Documents, by a Bench of Chief Justice Surya Kant, Justice Joymalya Bagchi and Justice V. Mohana.
Case at a glance
- Case: In Re: Victims of Digital Arrest Related to Forged Documents, SMW (Crl) No. 3 of 2025, with connected matters
- Bench: Chief Justice Surya Kant, Justice Joymalya Bagchi and Justice V. Mohana
- Order dated: 29 October 2026
- Amicus curiae: N.S. Nappinai, Senior Advocate
- For the Union: R. Venkataramani, Attorney General for India
- Next hearing: 23 November 2026
What is a “digital arrest” scam?
Fraudsters call or video-call a person, pretending to be police, CBI, customs, a court or another agency. They show fake documents, claim the person is “under digital arrest” for some crime, keep them on camera for hours or days, and pressure them to transfer money to “clear” their name. There is no such thing as a digital arrest in Indian law; no agency arrests anyone over a video call or demands money to close a case.
What the Supreme Court directed
1. WhatsApp and other intermediaries
WhatsApp LLC (a Meta company) and other concerned intermediaries must tell the Court what measures they propose to prevent digital arrest scams and related cybercrimes. They must send the same proposals to the Indian Cyber Crime Coordination Centre (I4C) at the same time (para 8).
2. Banks must compensate victims
The RBI’s regulatory measures must require financial institutions to indemnify victims of digital arrest scams and other cyber frauds. Where the fraud resulted from the institution’s failure to exercise due diligence in preventing or reporting it, the compensation must be “not less than the amount lost by the customer” (para 4).
3. Safeguards against suspicious transactions
Financial institutions must be required to temporarily suspend unusual or suspicious transactions that do not match the account’s past pattern, automatically inform the nearest police station, and physically verify such transactions (para 5).
4. RBI to list authorised institutions
The Court will first examine the RBI (Know Your Customer) Amendment Directions, 2026, which are to be notified by 30 November 2026 and put into operation by 31 December 2026. The RBI must place a list of all authorised financial institutions before the Court at the next hearing (paras 3 and 6).
5. Police to report on FIRs
Law enforcement agencies in all States and Union Territories must report the status of FIRs and investigations in digital arrest cases, and suggest measures for prevention, detection and prosecution. Directors General of Police must ensure compliance, and the reports must also go to I4C (para 7).
Background
The Bench has been monitoring digital arrest scams, many using forged court and agency documents, for several months. According to LiveLaw, a Union status report recorded the steps taken after the Court’s earlier directions, and WhatsApp reportedly banned about 9,400 accounts linked to these scams and to impersonation of law enforcement agencies.
How to protect yourself
- No real agency arrests you on a video call. Police, CBI, ED, customs and courts do not demand money over the phone to close a case.
- Do not transfer money to “verify” your account or “clear” your name, whatever documents are shown.
- Disconnect and verify by calling the agency’s official number yourself, or visiting the local police station.
- Report fast: call the National Cyber Crime Helpline 1930 or file a complaint at cybercrime.gov.in. Quick reporting improves the chance of freezing the money.
- Tell your bank immediately if money has gone. Under this order, banks that failed in due diligence may have to compensate you.
Why it matters
- For victims: the Court has made bank liability central. Where a bank’s lapse let the fraud through, compensation should cover at least the full loss.
- For platforms: messaging apps are now answerable to the Court on what they do to stop these scams.
- For banks: expect stricter KYC rules and holds on suspicious transactions from the end of 2026.