SC Hands Over Nationwide Digital Arrest Scam Probe to CBI, Questions RBI on AI Monitoring

By A Staff Reporter

In a significant step toward strengthening the fight against cyber fraud, the Supreme Court on Monday entrusted the Central Bureau of Investigation (CBI) with a unified, pan-India probe into digital arrest scam cases — a rapidly escalating form of cybercrime in which individuals are coerced into believing they are under arrest by impersonators posing as authorities. The move aims to consolidate investigations scattered across different states and streamline the crackdown on organised cyber syndicates operating across borders.

During the hearing, the apex court also questioned the Reserve Bank of India (RBI) over its strategies for monitoring fraudulent financial activity. The bench raised concern over the increasing number of accounts being used by cybercriminals for extortion, scam transactions and phishing payments, and asked why Artificial Intelligence — a tool capable of rapid data analysis and anomaly detection — was not being leveraged to identify and freeze suspicious bank accounts in real time.