As digital arrest scams proliferate across India, the Supreme Court has pressed the government to tighten controls on SIM issuance, VoIP platforms and cross-border spoofed calls, even as officials cite new technological interventions and legal reforms.
A Letter, a Loss and a Court’s Intervention
The case began with a letter. A senior citizen couple wrote to the Supreme Court stating that they had been defrauded of ₹1.5 crore between September 1 and 16 by individuals impersonating officials of the Central Bureau of Investigation (CBI), the Intelligence Bureau and members of the judiciary. The alleged fraud was executed through what has come to be known as a “digital arrest” scam — a scheme in which victims are coerced into believing they are under official investigation and must transfer funds to avoid arrest.
The Court registered a suo motu case in response, reflecting the growing alarm over such schemes nationwide. During a recent hearing, it was informed that the CBI had identified ₹10 crore as the amount amassed through digital arrest scams in its investigations so far.
On the preventive front, banks have begun deploying artificial intelligence systems to detect suspicious and fraudulent transactions, government counsel submitted. A memorandum of understanding and a standard operating protocol have also been drawn up to guide responses to such cases. The Court directed the swift implementation of these measures.
The proceedings have since broadened beyond the couple’s complaint to examine systemic vulnerabilities that enable the scams to proliferate.
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SIM Cards, Corporate Connections and Regulatory Gaps
A central focus of the hearings has been the issuance and misuse of SIM cards.
Representatives of the Department of Telecommunications (DoT) informed an inter-departmental committee that misuse through corporate and bulk SIM connections is relatively limited. Where such misuse occurs, they said, it often involves shell entities or insider collusion, matters that fall within the domain of criminal investigation.
On the question of daily SIM issuance, the committee was told that telecom service providers may issue up to three SIM cards per day — one through electronic Know Your Customer (eKYC) verification and two through digital KYC (D-KYC). However, officials acknowledged that there is currently no cross-provider visibility mechanism to ensure compliance across telecom operators.
According to the status report, the DoT assured the committee that it would explore remedial measures, including technological and systemic controls, to address this gap.
Senior Advocate N. S. Nappinai, appearing as amicus curiae and present at the meetings, urged that both existing and newly issued SIMs be brought within the scope of corrective measures. She requested that further details be furnished in writing and emphasized that effectiveness would depend on ground-level enforcement.
The committee was also informed that the Telecommunications Act, 2023 now permits biometric verification for SIM issuance. Rules to operationalize this provision are in the final stage of drafting, following the conclusion of public consultations. Officials said these rules are intended to prospectively address vulnerabilities in SIM issuance and management.
VoIP Calls and the Challenge of Platform Jurisdiction
Another point of scrutiny has been the role of Voice over Internet Protocol (VoIP) calls, which are frequently routed through platforms such as WhatsApp and Telegram.
The committee was told that such calls fall outside the direct regulatory purview of the DoT because these platforms are classified as intermediaries under the Information Technology Act, 2000. However, Ms. Nappinai noted that VoIP services are also provided by telecom service providers and that misuse of these services warrants examination.
The status report identifies misuse of over-the-top (OTT) communication platforms, particularly WhatsApp, as a major vector in digital arrest scams. To address this, the DoT informed the Court that it has issued directions to implement “SIM-binding” for such platforms — a measure intended to link user accounts more tightly to verified SIM credentials.
The Court was told that an inter-departmental committee had been constituted by the Centre to consider these issues. The committee has met twice, and its discussions with the DoT have focused extensively on vulnerabilities in SIM issuance and management that are being exploited in digital arrest scams.
Blocking Spoofed Calls at the Gateway
The government’s status report also detailed technological interventions aimed at curbing spoofed calls. Systems have been deployed at international gateways to block calls that originate from foreign locations but display Indian numbers. The Central International Out Roamer (CIOR) mechanism, introduced in October 2024, was cited as a key intervention.
According to the report, approximately 1.35 crore such calls were blocked in October 2024 alone. Since then, the number of spoofed calls has reduced to approximately 1.5 lakh, the government said. During Monday’s hearing, a Bench comprising Chief Justice of India Surya Kant and Justice Joymalya Bagchi was apprised of these measures. The Court noted the status report filed in the suo motu proceedings initiated in October 2025 to address the growing menace of digital arrest scams across the country.
As the case continues, the hearings have come to function as a forum not only for addressing individual grievances but also for mapping the technological, legal and administrative contours of a rapidly evolving form of fraud.
