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The Supreme Court has directed WhatsApp and other digital intermediaries to submit details of measures they propose to introduce to prevent digital arrest scams and related cybercrimes. The companies have also been instructed to share their proposals with the Indian Cybercrime Coordination Centre (I4C), as the court examines stronger safeguards against online financial fraud.
A bench headed by Chief Justice of India Surya Kant, comprising Justices Joymalya Bagchi and V Mohana, issued the directions in an order following its October 29 hearing.
The proceedings form part of a suo motu case titled In Re: Victims of Digital Arrest Related to Forged Documents. The matter has been listed for further hearing on November 23.
The court has also reiterated the need for stricter accountability of financial institutions where failures in monitoring suspicious transactions contribute to cyber fraud losses.
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WhatsApp and Digital Platforms Asked to Outline Preventive Measures
The Supreme Court directed WhatsApp LLC, a Meta company, and other concerned intermediaries to explain the steps they intend to take to prevent digital arrest scams.
The bench instructed the companies to submit these proposals both to the court and to I4C.
The directions seek to involve digital platforms in strengthening preventive measures against fraudsters who use online communication services to impersonate law enforcement officials and intimidate victims.
In its order, the court specifically asked the intermediaries to provide details of their proposed safeguards against digital arrest scams and related cybercrimes.
The proceedings reflect the court’s continuing examination of the responsibilities of digital platforms and financial institutions in preventing such offences.
Supreme Court Calls for Bank Compensation Where Due Diligence Fails
The bench also reiterated its position that banks and other financial institutions should be held accountable when failures to exercise due diligence contribute to digital arrest fraud.
In its October 29 order, the court said the Reserve Bank of India’s proposed regulatory measures should include provisions requiring financial institutions to compensate affected customers where investigations establish that inadequate preventive action contributed to their losses.
The court called for compensation of at least the amount lost by the customer in cases where a financial institution’s failure to prevent or report suspicious activity is established.
The bench emphasised that banks have access to customers’ transaction histories and should use this information to identify unusual financial activity before fraudulent transfers are completed.
Chief Justice Surya Kant described banks as a protective umbrella for vulnerable customers, stressing their responsibility to detect and intervene in suspicious transactions.
The court’s observations concern proposed regulatory safeguards and do not amount to a finding that every victim of digital arrest fraud is automatically entitled to reimbursement.
RBI Asked to Submit List of Financial Institutions Before November 23
The Supreme Court has directed the Reserve Bank of India to provide a list of all authorised financial institutions before the next hearing.
The direction is intended to support the implementation of the proposed regulatory framework and establish the institutions covered by the suggested safeguards.
The court also expressed concern about the financial impact of cybercrime despite an observed reduction in reported incidents.
According to figures referred to during the proceedings, cybercrimes had declined by 50%, but victims had still lost approximately ₹800 crore during the year.
The bench stressed that any regulatory framework proposed by the RBI should include enforceable measures addressing compensation, preventive intervention and institutional responsibility.
The court’s directions place particular emphasis on identifying suspicious transactions before money is transferred out of victims’ accounts.
WhatsApp and other intermediaries are expected to provide their proposed anti-fraud measures, while the RBI must submit the requested information ahead of the next hearing.
The Supreme Court will take up the matter again on November 23 as it continues examining measures to prevent digital arrest scams and strengthen accountability among digital platforms and financial institutions.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
