The Supreme Court of India called Rs 54,000 crore in cyber fraud “absolute robbery” and directed the Centre, RBI, banks, and telecom authorities to implement an urgent SOP to prevent digital scams. It highlighted digital arrest scams targeting retirees and urged faster action, accountability, and a compensation framework for victims.
India’s highest court has issued a strong warning on the rising menace of digital fraud. On Monday, the Supreme Court of India described the siphoning of over Rs 54,000 crore through cyber scams as “absolute robbery or dacoity.”
The court has asked the Central Government to urgently draft a Standard Operating Procedure (SoP). This is intended to prevent such large-scale cybercrime and protect citizens.
Court: Loss Exceeds Budgets of Small States
A bench led by Chief Justice of India Surya Kant, along with Justices Joymalya Bagchi and N. V. Anjaria, flagged the enormity of the fraud. They pointed out that the total amount stolen digitally surpasses the annual budgets of several small Indian states.
“We are faced with a crime that is nothing short of robbery or dacoity,” the court observed. The bench stressed that the current response regime remains fragmented and slow, letting criminals move stolen money before action is taken.
Banks, Telecom and Regulators in Focus
The Supreme Court has asked the Centre to prepare the SoP in consultation with key stakeholders. These include:
- Reserve Bank of India (RBI)
- Banks and financial institutions
- Department of Telecommunications (DoT)
Attorney General R. Venkataramani told the court that the RBI has already drafted a protocol for banks. It asks them to temporarily block debit cards and flag unusual transactions. However, the bench emphasized that paper procedures must translate into real-world action.
The court also instructed the Ministry of Home Affairs (MHA) to adopt and roll out the RBI’s SoP and related telecom measures within four weeks.
Alarming Role of Banks and Agents
In its hearing, the Supreme Court warned that some frauds may involve negligence or even collusion by bank officials. It urged stronger accountability and controls to prevent insiders from aiding criminals.
The bench said that banks have a fiduciary duty to alert customers when suspicious transactions occur. It noted cases where retirees suddenly withdrew huge sums via digital scams, far beyond their normal transaction patterns.
Digital Arrest Scams: A New Threat
A growing type of fraud, known as digital arrest scams, involves fraudsters impersonating law enforcement or government agencies. They intimidate victims via video calls and false claims to transfer vast sums of money.
Healthcare worker pensions and retirement savings are common targets. For example:
- In Pune, an 82-year-old man lost Rs 10.7 crore in a digital arrest scam after fraudsters posed as officials from central agencies.
- In Mysuru, several retirees lost significant amounts through similar schemes.
These cases illustrate how fraudsters exploit fear, authority and technology to manipulate victims.
CBI and State Governments Asked to Act
The Supreme Court also directed the Central Bureau of Investigation (CBI) to identify digital arrest cases nationwide. It asked both the Gujarat and Delhi governments to grant necessary sanctions for the federal probe agency to begin investigations.
The court is expected to revisit the matter in a few weeks, after authorities submit updated action reports.
Compensation Framework in the Works
For the first time, the top court suggested designing a compensation framework for digital fraud victims. The RBI, DoT and other state and central agencies have been asked to meet and propose a plan.
The bench stressed a pragmatic and liberal approach to victim relief, recognizing the severe impact of cybercrime on ordinary citizens.
Rising Cybercrime Across India
Law enforcement agencies are already responding. Delhi Police recently busted five major cyber fraud syndicates, recovering funds and arresting suspects.
Despite these efforts, experts warn that many victims don’t report losses due to fear or embarrassment. Cybersecurity specialists call for public awareness campaigns alongside enforcement action.
What Happens Next
The Supreme Court’s order is trying to put pressure on the Centre and regulators to act faster. Drafting and implementing SoP will test cooperation among banks, telecom regulators and law enforcement.
India’s battle against digital fraud continues. Success will depend on stronger safeguards, faster freezing of suspect accounts and real-time monitoring of digital financial systems.
Clear Cut Education, Research Desk
New Delhi, UPDATED: Feb 10, 2026 01:00 IST
Written By: Ayushman Meena
