New Delhi, February 9, 2026: Expressing serious concern over the rising menace of cybercrime, the Supreme Court on Monday described the siphoning off of nearly Rs 54,000 crore through digital frauds as nothing short of “robbery or dacoity” and directed the Centre to prepare a comprehensive standard operating procedure (SOP) to combat such offences.
A Bench headed by Chief Justice of India Surya Kant observed that the amount lost to digital fraud was larger than the annual budgets of several smaller states. The court noted that such large-scale frauds could be the result of either negligence or possible collusion by bank officials, and stressed the need for prompt and coordinated action by the Reserve Bank of India (RBI) and banks.
Taking note of an existing RBI mechanism that allows banks to temporarily block debit cards to prevent cyber fraud, the court asked the Ministry of Home Affairs to examine it along with similar measures proposed by the Department of Telecommunications (DoT). The Centre has been directed to prepare a draft memorandum of understanding (MoU) within four weeks after consultations with the RBI, banks and telecom authorities.
The apex court also instructed the RBI, DoT and other stakeholders to jointly develop a framework for compensating victims of “digital arrest” scams. It emphasised that authorities should adopt a pragmatic and liberal approach while considering compensation claims. The matter has been listed for further hearing after four weeks, with directions to file updated status reports.
In addition, the court directed the Central Bureau of Investigation (CBI) to identify cases involving digital arrest scams and asked the governments of Delhi and Gujarat to grant the necessary approvals for the agency to proceed with investigations.
Earlier, the court had ordered a nationwide CBI probe into such scams and sought an inquiry into the possible involvement of bank personnel. The proceedings originated from a letter written by a 73-year-old woman who reported being defrauded through fake judicial orders.
The court had also questioned why advanced technologies such as artificial intelligence were not being effectively used to detect suspicious transactions and freeze accounts linked to cybercriminals. It further directed all states and union territories, along with law enforcement agencies, to take prompt action to freeze accounts used for fraudulent activities and to extend full cooperation to central investigators.
Digital arrest frauds have emerged as a growing cybercrime trend, where fraudsters impersonate police, court officials or government authorities through calls or video interactions, intimidating victims into transferring money under false threats.
