Supreme Court Orders Nationwide CBI Probe into Digital Arrest Scams, Questions RBI on Lack of AI Use

New Delhi, December 1, 2025 — The Supreme Court on Monday directed the CBI to conduct a unified, nationwide investigation into digital arrest scam cases, expressing concern over the rapid rise of this sophisticated cybercrime. The court also questioned the Reserve Bank of India (RBI) on why artificial intelligence tools were not being used to identify and freeze bank accounts operated by cybercriminals.

Digital arrest scams involve fraudsters impersonating police officers, court officials or government agency representatives. They intimidate victims through audio and video calls, holding them virtually hostage and forcing them to transfer money. Senior citizens are among the most frequent targets.

A Bench of Chief Justice Surya Kant and Justice Joymalya Bagchi asked opposition-governed states — including West Bengal, Tamil Nadu, Karnataka and Telangana — to grant the CBI consent to investigate such cases within their jurisdictions. The top court also issued notice to the RBI, seeking an explanation on the absence of AI or machine learning systems to promptly detect and freeze fraudulent accounts.

The directions came during a suo motu hearing based on a complaint filed by an elderly couple from Haryana. The court noted that cybercriminals have extorted over ₹3,000 crore from victims so far.

The Bench also instructed digital platforms and IT intermediaries to cooperate fully with the CBI and provide necessary details for the investigation. It allowed both the CBI and state police agencies to freeze bank accounts used in online fraud without hesitation.

The court further directed the CBI to work with Interpol to track cybercriminals operating from foreign tax havens. It asked the Department of Telecommunications to ensure telecom operators do not issue multiple SIM cards to a single user or entity, which often facilitates cyber fraud.

To improve coordination, the court ordered all states and Union Territories to establish regional and state-level cybercrime coordination centres. It also asked Solicitor General Tushar Mehta to compile the views of key Union ministries — including Home Affairs, Finance, Telecom and Electronics & IT — for the court’s consideration.

At the outset, the Bench instructed the CBI to investigate bank officials suspected of assisting fraudsters by enabling mule accounts. Such accounts, opened in the names of unsuspecting or complicit individuals, allow criminals to park and transfer illicit funds while avoiding detection.

The Supreme Court had earlier expressed alarm over the scale of digital arrest scams, saying they must be dealt with “with an iron hand.” It had also reviewed sealed cover reports submitted by the Ministry of Home Affairs and the CBI detailing the magnitude of the threat.