Relevance: GS III (Internal Security & Cyber Crime) | Source: The Indian Express
1. The Context: A Systemic Failure
The Supreme Court has expressed shock at the loss of ₹54,000 crore to “Digital Arrest” scams, terming it akin to “robbery or dacoity.”
- The Criticism: The Court criticized the Reserve Bank of India (RBI) and banks for negligence, stating that such large-scale siphoning cannot happen without the collusion or failure of banking officials. It emphasized that banks are “trustees” of public money and cannot prioritize profit over security.
2. What is “Digital Arrest”?
- Definition: It is a cyber-fraud where scammers impersonate law enforcement officials (CBI, ED, Police) via video calls (Skype/WhatsApp). They create a fake “virtual police station” and accuse the victim of crimes like money laundering or drug trafficking.
- Modus Operandi: Victims are coerced into staying visible on camera (“digitally arrested”) and transferring funds to a “verified account” for inspection.
- Legal Reality: There is no provision for “digital arrest” under the Bharatiya Nagarik Suraksha Sanhita (BNSS) or any Indian law. Arrests require physical presence and due procedure.
3. The “Mule Hunter” & Solutions
To curb this, the Court highlighted specific technological interventions:
- Mule Accounts: These are bank accounts used by fraudsters to receive and launder stolen money.
- “Mule Hunter” AI: An AI/ML-based tool developed by the Reserve Bank Innovation Hub (RBIH). It analyzes transaction patterns (like sudden high-velocity transfers) to identify and freeze mule accounts before the money is withdrawn.
- Velocity Checks: The Court mandated real-time monitoring of the speed and volume of transactions to flag suspicious activity instantly.
UPSC Value Box
Concept / Tool | Relevance for Prelims |
| I4C | Indian Cyber Crime Coordination Centre. Established by MHA to handle all types of cybercrime in India. It manages the 1930 Helpline. |
| Chakshu Portal | Launched under the Sanchar Saathi initiative (DoT) to allow citizens to report fraudulent communications (calls/SMS) suspected of cybercrime. |
| Pratibimb Portal | A tool used by law enforcement agencies to map the geographic location of active cybercriminals in real-time. |
Q. With reference to cyber security initiatives in India, consider the following statements:
- “Digital Arrest” is a legal procedure under the Bharatiya Nagarik Suraksha Sanhita (BNSS) for questioning suspects remotely.
- The “Mule Hunter” is an AI-based tool developed by the Reserve Bank Innovation Hub (RBIH) to detect fraudulent bank accounts.
- The “Chakshu” facility on the Sanchar Saathi portal allows citizens to report suspected fraud communications.
Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Correct Answer: (c)
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