By: Brij B. Gupta1 and Akshat Gaurav2
1Department of Computer Science and Information Engineering, Asia University, Taichung 413, Taiwan.
2Ronin Institute, Montclair, NJ, USA
A digital arrest is a new type of cyber scam, in which the scammer impersonates a law enforcement officer and threatens the victim with fake charges[1]. According to an estimate, victims lost about 1,200m rupees from January to April 2024. Also, most of the scam calls come from Myanmar, Cambodia, and Laos, making it a global scam.
Method of Digital Arrest
The scammer claims to have a warrant against the victim for a cybercrime. According to a study by PhonePe, digital arrest is a four-stage process[2]. Scammers use different channels, like social media, sms, and emails, to contact the victim. After the communication is established, scammers start accusing the victim of being part of “suspicious internet activity” or “fraudulent transactions.” After accusations, scammers ask the victim to pay the fine through cryptocurrencies or gift cards. If the victim hesitates to pay the fine, then scammers become aggressive and threaten the victim for further legal action or immediate arrest [2].
Case studies
SP Oswal’s Case
Mr. Oswal received a call from an anonymous individual claiming there were financial irregularities in one of his bank accounts. The caller alleged that his account was linked to a case involving Naresh Goyal, the former chairman of Jet Airways, who was arrested in September 2023 for laundering 5.3 billion rupees. To add credibility to the scam, the fraudsters issued fake arrest warrants and fabricated Supreme Court documents that stipulated Oswal owed $833,000. Believing the claims, Oswal transferred the money to a specified bank account. After realizing he was defrauded, Oswal lodged a complaint with local police. Cybercrime officials launched an investigation, leading to the recovery of $630,000 of the total $833,000. Authorities confirmed this recovery as the largest in India for a case of this nature [3].
Dr Tandon’s case
In August, Dr. Tandon became the target of a highly orchestrated scam that posed as a federal investigation. Fraudsters impersonated law enforcement officials during video calls and fabricated charges against her. They used a fabricated term, “digital arrest,” to create a sense of urgency and fear, coercing her into compliance. Under the pretext of being under constant surveillance, Dr. Tandon was forced to take leave from work, surrender her freedoms, and follow the perpetrators’ instructions. Over the course of the week, the scammers pressured her to transfer nearly 25 million rupees ($300,000) from her family’s bank accounts, mutual funds, pension funds, and life insurance policies[1].
Mumbai Case
On December 5, the victim sent a courier containing food items to her daughter in the United States. The following day, she received a call from an individual, Amit Kumar, claiming to be from the courier company. Kumar alleged that the package contained her Aadhaar card, expired passports, SBI credit cards, MDMA drugs, and $2,000 in cash. The fraudsters, posing as members of a fake Special Investigation Team (SIT), claimed that the package implicated her in a money laundering case. They further accused her of being linked to individuals under investigation for drug smuggling and financial crimes. The elderly victim faced immense stress and fear due to the threats of legal and criminal repercussions [4].
Protection against “Digital Arrest”
according to the inspector general of police for Maharashtra’s Cyber Department, Indian Law has no provision for “Digital Arrest” [5]. So if anyone receives a fake call, then he/she must report the call to law enforcement. Also, always verify the identity of the person, who calls.
Use the financial helpline (1930) to freeze the transaction, in case of mistaken payment. Also, use updated software and two-factor authentication to protect personal and private information.
Conclusion
Digital arrest is a form of a spear phishing attack, in which the attacker portrays himself as a law enforcement officer and threatens the victim. Due to a lack of knowledge most of the victims fall for the attack and lose a big amount of money. In this context, central government, and Prime Minister Narendra Modi warns the citizens against this type of attack.
References
- “‘You are under digital arrest’: Inside a scam looting millions from Indians.” Accessed: Jan. 04, 2025. [Online]. Available: https://www.bbc.com/news/articles/cdrdyxk4k4ro
- “Police Calling? Stay Vigilant! Here’s How to Recognize a Digital Arrest Scam.” Accessed: Jan. 04, 2025. [Online]. Available: https://www.phonepe.com/blog/trust-and-safety/police-calling-stay-vigilant-heres-how-to-recognize-a-digital-arrest-scam/
- “What are digital arrests, the newest deepfake tool used by cybercriminals? | Science and Technology News | Al Jazeera.” Accessed: Jan. 04, 2025. [Online]. Available: https://www.aljazeera.com/news/2024/10/11/what-are-digital-arrests-the-newest-deepfake-tool-used-by-cybercriminals
- “Mumbai: Elderly woman loses ₹1.5 crore in ‘digital arrest’, scammers pose as SIT officers,” Hindustan Times. Accessed: Jan. 04, 2025. [Online]. Available: https://www.hindustantimes.com/india-news/mumbai-elderly-woman-loses-rs-1-5-crore-in-digital-arrest-scammers-pose-as-sit-officers-101735820771904.html
- B. Standard, “Crores lost to ‘digital arrest’ scam: Here’s how to avoid falling victim.” Accessed: Jan. 04, 2025. [Online]. Available: https://www.business-standard.com/finance/personal-finance/crores-lost-to-digital-arrest-scam-here-s-how-to-avoid-falling-victim-124113000374_1.html
Cite As
Gupta B.B.; Gaurav A (2025) Digital Arrest Scam: Exploiting Fear and Authority to Defraud the Vulnerable, Insights2Techinfo, pp.1