Supreme Court Shocked by ₹3,000 Crore Cyber Fraud, Demands Stringent Action

The Supreme Court of India has voiced significant concern, calling the nearly ₹3,000 crore collected through cyber frauds, especially "digital arrest scams," as "shocking." Justices Surya Kant and Joymalya Bagchi emphasized that the problem will escalate without harsh and stringent orders, vowing to tackle it with "iron hands."

This strong stance comes as the Court is hearing a suo motu case it initiated to address the growing menace of digital arrest scams nationwide. Previously, the Court had directed all states to submit details of registered First Information Reports (FIRs) and questioned the Central Bureau of Investigation's (CBI) capacity to handle all such cases.

In response, the Ministry of Home Affairs (MHA) and CBI submitted a sealed report. Solicitor General Tushar Mehta informed the Court that a separate unit within the MHA is actively coordinating and implementing steps to combat these frauds. The Court indicated that appropriate directions would be issued soon and scheduled the next hearing for November 10.

The case originated from a complaint by a senior citizen couple who lost ₹1.5 crore to scammers between September 1 and 16. These fraudsters impersonated officials from the CBI, Intelligence Bureau, and the judiciary, using forged court orders and threats of arrest to extort money. Subsequently, two FIRs were filed, revealing an organized pattern targeting senior citizens. The Court had previously noted media reports about similar scams and sought responses from the government and CBI, also requesting the Attorney General's assistance.

Impact This news highlights a significant financial crime affecting Indian citizens and businesses. It can lead to increased investor caution regarding digital security, potential calls for stricter regulations on online platforms, and impact consumer confidence. The economic loss and the judiciary's active involvement underscore the severity, potentially influencing economic policy and cybersecurity investments. The impact on the broader Indian stock market might be indirect, affecting sentiment rather than specific sector performance, though cybersecurity and IT services sectors might see increased focus. Rating: 7/10.

Difficult Terms * Suo motu: A Latin term meaning "on its own motion." It refers to an action taken by a court or a government agency on its own initiative, without a formal request from parties involved. * FIR (First Information Report): A report registered by the police upon receiving information about the commission of a cognizable offense. It is the first step in the criminal justice process. * CBI (Central Bureau of Investigation): India's premier investigative police agency, responsible for investigating crimes, enforcing laws, and maintaining the integrity of the justice system. * MHA (Ministry of Home Affairs): A ministry of the Government of India, responsible for the internal security of the country. * Solicitor General: A senior legal officer of the government, subordinate to the Attorney General, who represents the government in court. * Digital arrest scams: A type of cyber fraud where scammers impersonate law enforcement or judicial officials, often through phone calls or video conferences, and threaten victims with arrest unless they pay a bribe or fine.