Context:
The Supreme Court of India has directed the Central Bureau of Investigation (CBI) to conduct a pan-India probe into large-scale ‘digital arrest’ cyber frauds, overriding the usual requirement of state consent. These scams have resulted in losses of over ₹3,000 crore, with senior citizens being the primary victims.
Key Highlights:
Nature of the Scam – ‘Digital Arrest’
- Fraudsters impersonate law enforcement or investigative agencies
- Victims are falsely told they are under digital arrest for alleged crimes
- Coercion used to extract money via online transfers
Judicial Intervention
- Supreme Court authorises CBI to investigate across states
- State consent overridden, an exceptional constitutional measure
- Reflects the seriousness and national spread of the cybercrime
Scale and Impact
- Estimated fraud amount: ₹3,000 crore+
- Elderly citizens disproportionately targeted due to lower digital awareness
Banking and Financial Angle
- CBI allowed to initiate anti-corruption probe
- Focus on bank officials involved in opening mule accounts
- Mule accounts used to launder scammed money
States Directed to Cooperate
- Bihar, Tamil Nadu, Karnataka, Kerala, among others
- Required to extend full logistical and administrative support
Phased Investigation Plan
- Phase 1: Digital arrest scams
- Phase 2: Expansion to other cybercrime categories
Relevant Prelims Points:
- Digital Arrest Scam:
- A form of cyber-enabled extortion
- Uses fear, impersonation, and psychological pressure
- Targets digitally vulnerable populations
- Mule Account:
- Bank account used to transfer or park illicit funds
- May be opened knowingly or unknowingly
- Key enabler of financial cybercrime
- Legal Provision Involved:
- Section 6, Delhi Special Police Establishment (DSPE) Act, 1946
- Requires state consent for CBI investigations within states
- Supreme Court can override in exceptional circumstances
- Issue & Causes:
- Rapid digitisation without adequate cyber awareness
- Weak KYC enforcement in banking channels
- Cross-border and inter-state nature of cybercrime
- Impact & Challenges:
- Erosion of trust in digital systems
- Difficulty in jurisdictional coordination
- Low conviction rates in cyber fraud cases
Relevant Mains Points:
- Constitutional & Legal Dimensions:
- Balance between federalism and national security
- Judicial use of extraordinary powers to address systemic crime
- Governance and Internal Security Link:
- Cybercrime as a non-traditional internal security threat
- Increasing convergence of technology, finance, and crime
- Science & Technology Aspect:
- Misuse of digital platforms, VoIP calls, and online banking
- Need for cyber forensics and AI-based fraud detection
- Keywords & Concepts:
- Cyber fraud, digital vulnerability, cooperative federalism, financial crime
- Way Forward:
- Strengthen cybercrime reporting and response mechanisms
- Improve digital literacy, especially among senior citizens
- Tighten bank KYC norms and real-time transaction monitoring
- Enhance inter-agency and inter-state coordination
- Update legal frameworks to address emerging cyber threats
UPSC Relevance (GS-wise):
- GS 2: Judiciary, Federalism, Centre–State Relations
- GS 3: Internal Security, Cybercrime, Science & Technology