DIGITAL ARREST SCAMS IN INDIA: CRIMINAL LIABILITY AND THE CHALLENGE OF CROSS BORDER CYBER FRAUD: Author:Arjuman Lodhi
Imagine sitting at home when your phone rings with a video call from a number. On the screen a man wearing a delivery uniform speaks in a rushed tone. He tells you something a package sent using your name has been intercepted and it is packed with illegal drugs or fake documents.
ARTICLE
1. When the Screen Becomes a Cell: Understanding India’s “Digital Arrest” Scams
Imagine sitting at home when your phone rings with a video call from a number. On the screen a man wearing a delivery uniform speaks in a rushed tone. He tells you something a package sent using your name has been intercepted and it is packed with illegal drugs or fake documents.
Before your mind can even process what is happening the call is transferred. Suddenly a man dressed in a police uniform appears on your screen sitting in front of a looking badge. He already knows your date of birth your ID number and where you grew up. He tells you that you are under investigation. Then comes the command that seals your trap: do not leave your seat do not talk to your family. Do not hang up the phone.
This exact nightmare happened to S.P. Oswal, the chairman of one of India’s textile companies. He was kept trapped on a video call for two days manipulated by fake documents and a forged Supreme Court warrant sent straight to his WhatsApp. Terrified for his safety and the safety of his family he handed over $840,000.
Fortunately police later managed to recover most of the money. Arrested some of the criminals.. The deeper psychological trauma remains: how did a sharp successful business leader spend two days believing he was already locked away inside his own home?
2. The Anatomy of Fear
This terrifying trend is known as ‘ arrest’. Let’s be clear from the start: it is a fiction. There is no thing as a digital arrest in any legal system.
Yet these scams work because of how our brains are wired. We are naturally conditioned to respect and trust figures of authority. When someone wears a uniform on a video screen our critical thinking switches off. Most of us have never seen what an actual video call from a law enforcement agency looks like leaving us completely unprepared.
Once fear takes over the scammers deploy their powerful weapon: isolation. They warn victims repeatedly that hanging up or seeking help from a family member will be treated as proof of guilt. Cut off from advice and paralyzed by terror the victim becomes completely compliant.
While the term ‘ arrest’ is mostly used in India. Where the scam became a massive epidemic. The tactics of weaponizing fake authority and manufacturing false urgency are used by cybercriminals worldwide.
3. Untangling the Crime and Criminal Liability
Legally these fraudsters are prosecuted under existing laws against cheating, criminal impersonation and fraud. However tackling this crime is like chasing smoke.
Once a victim transfers their money the cash does not go straight to the masterminds. Instead it bounces rapidly through a web of ‘bank accounts. Often opened by unsuspecting or desperate people who are paid a small commission with no idea what is happening. The money is then funnelled into accounts and the phone numbers and SIM cards used by the scammers are registered using fake identities.
Because of this catching the people behind a digital arrest call requires dismantling a massive underground financial and technical network rather than just catching a single scammer.
4. Cross-Border Fraud: The Major Challenge
Digital arrest scams are often not limited to one country. The victim may be sitting in India while the person operating the scam may be in another country. The money may also be transferred through foreign bank accounts, cryptocurrency wallets or accounts opened using fake identities. This makes the investigation difficult because Indian authorities can’t simply exercise their powers outside India.
There is also the problem of preserving electronic evidence. Important evidence may be stored on servers located outside India or controlled by foreign technology companies. Investigators may need to follow foreign legal procedures before obtaining such information. Delays can be serious because digital evidence can be deleted, altered or become difficult to retrieve.
Digital arrest scams show that cybercrime is no longer restricted by national borders.
5. The Long Road to Protection
The scale of this crisis has forced a response. India’s Home Ministry estimated losses from these scams at around $360 million prompting the Supreme Court to step in and closely monitor government action.
Official data shows a decline in reported cases dropping from over 120,000 in 2024 to about 58,000 in 2025 and down to roughly 16,000, in the first half of 2026. However authorities warn that fewer complaints do not mean the threat is gone. Many victims remain too ashamed or traumatized to speak up
To protect citizens moving forward authorities are exploring safeguards. These include systems to temporarily freeze bank transfers and a potential emergency ‘kill switch’ designed to instantly terminate suspicious audio or video calls before any money can change hands.
Digital arrest scams remind us that the dangerous modern weapons do not break doors or pick locks. Instead they exploit the heart using fear and isolation to turn our own screens against us.