Mon Dec 01 10:20:38 UTC 2025: ## Supreme Court Orders Pan-India Probe into Digital Arrest Scams, Questions RBI’s AI Usage
New Delhi – December 1, 2025 – The Supreme Court of India has expressed “grave concern” over the escalating issue of digital arrest scams and has mandated a unified, pan-India investigation by the Central Bureau of Investigation (CBI). The court has also questioned the Reserve Bank of India (RBI) on its lack of utilization of Artificial Intelligence (AI) to detect and freeze bank accounts used by cybercriminals.
Digital arrest scams, a growing form of cybercrime, involve fraudsters posing as law enforcement or government officials to intimidate victims, primarily senior citizens, into paying money. The Supreme Court’s action comes following a suo motu case registered on the complaint of an elderly couple from Haryana who fell victim to the scam.
A Bench headed by Chief Justice Surya Kant has directed all states, including West Bengal, Tamil Nadu, Karnataka, and Telangana, to grant the CBI the necessary consent to investigate these cases within their jurisdictions. Notices have been issued to the RBI, demanding an explanation as to why AI or machine learning technology isn’t being deployed to combat cyber fraud by freezing compromised accounts.
The court further directed Information Technology intermediaries to cooperate with the CBI in providing information relevant to the digital arrest investigations. Recognizing the international nature of these crimes, the CBI has been instructed to seek assistance from Interpol to track down cybercriminals operating from offshore tax havens.
In an effort to curb the proliferation of SIM cards used in these scams, the Department of Telecom has been directed to ensure telecom service providers limit the issuance of multiple SIM cards to single users or entities. The court also emphasized the need for better coordination and directed all states and union territories to establish regional and state cybercrime coordination centers.
Solicitor General Tushar Mehta has been tasked with gathering the views of various Union Ministries, including the Ministry of Home Affairs, Department of Telecom, Finance Ministry, and Ministry of Electronics and Information Technology, to formulate a comprehensive strategy to combat cybercrime.
Importantly, the Supreme Court has granted states, union territories, and the CBI the authority to freeze bank accounts used in defrauding citizens. The court has also instructed the CBI to investigate bank officials suspected of colluding with fraudsters in operating “mule accounts” used to launder illicit funds.
This intervention follows the Supreme Court’s earlier expression of shock on November 3rd regarding the scale of digital arrest scams, with an estimated ₹3,000 crore allegedly extorted from victims. The court had previously reviewed sealed reports submitted by the Ministry of Home Affairs and the CBI. The Supreme Court emphasized its commitment to addressing digital arrest cases with a firm hand.
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