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Relevance: GS-III (Internal Security, Cyber Security); GS-II (Governance) Source: Supreme Court & I4C Updates, 2026

1 · What is the core issue in simple words?

A terrifying new cybercrime called the “Digital Arrest” is spreading across India. In this scam, fraudsters dress up as CBI, police, or ED officers and make video calls to innocent citizens. They falsely claim the victim is involved in a serious crime (like drug smuggling or money laundering) and force them to stay visible on the camera for hours – literally “arresting” them digitally – until extortion money is paid.
Because this has become a nationwide crisis, the Supreme Court of India recently stepped in directly. The Court has ordered the RBI, state governments, and banks to create strict, immediate rules to freeze these fraudulent bank accounts and make it easier for victims to get their stolen money back.

2 · The Court’s Action Plan

Step 1: Freezing the Money
The Supreme Court ordered the RBI to issue strict guidelines (SOP) within four weeks, legally forcing banks to immediately block accounts used by these scammers.
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Step 2: Easier Complaints (e-Zero FIR)
States have been directed to implement ‘e-Zero FIRs’. This allows a victim to file a police complaint online instantly, regardless of which city the crime happened in.
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Step 3: The ‘Kill Switch’ Idea
The Court asked a special committee to explore a technological “kill switch”—a safety feature that automatically cuts off video calls on apps like WhatsApp if they run for suspiciously long hours.
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Step 4: Getting the Money Back
A new Money Restoration Portal has been set up across 57 banks nationwide. It has already successfully returned over ₹18 crore to thousands of scam victims.

3 · Key Cyber Security Terms

Mule Accounts
The Hidden Path
These are fake bank accounts opened by scammers using someone else’s identity. They use these accounts to hide the stolen money and transfer it secretly to evade the police.
I4C
India’s Cyber Shield
The Indian Cybercrime Coordination Centre (I4C) is the main government body that tracks nationwide cybercrimes and works with banks to freeze stolen funds.
e-Zero FIR
No Boundaries
A legal mechanism that allows a citizen to file a police case (FIR) online instantly, without worrying about which local police station actually has jurisdiction over the crime.
Shared Liability
Sharing the Blame
The Court is exploring if banks and telecom companies should share the blame (and pay compensation to the victim) if their platforms are misused for these financial scams.

UPSC Prelims Quick Facts: Government Action
NCRP Portal The National Cyber Crime Reporting Portal is where citizens can report digital scams. Thanks to better public awareness, complaints have drastically dropped by mid-2026.
Implementation Gaps Despite strict Supreme Court orders, implementation at the state level is slow. Currently, only 14 States have set up their mandatory State Cyber Crime Coordination Centres.
CBI Operations The Central Bureau of Investigation (CBI) is actively cracking down on these gangs. In one case alone, they traced ₹80 crore moving across 16 different States.
Telecom Rules 2025 The Central Government has introduced new rules to strictly monitor who is buying and using SIM cards, making it harder for scammers to hide their true identities.

MCQ Practice Question
Q. With reference to the measures taken to combat cyber fraud in India, consider the following statements:

  1. An e-Zero FIR allows a victim to register a cybercrime complaint online, regardless of the territorial jurisdiction where the crime occurred.
  2. ‘Mule accounts’ refer specifically to the official, secure bank accounts created by the RBI to store recovered scam money.
  3. The Supreme Court recently directed the RBI to frame standard rules for placing temporary debit holds on bank accounts linked to cyber fraud.

Which of the statements given above is/are correct?
(a) 1 and 2 only    (b) 1 and 3 only    (c) 2 and 3 only    (d) 1, 2 and 3

Answer: (b) 1 and 3 only

  • Statement 1 — Correct: The e-Zero FIR mechanism is designed precisely to remove jurisdictional hurdles, allowing for immediate complaint registration by victims.
  • Statement 2 — Incorrect (the trap): ‘Mule accounts’ are not official RBI accounts. They are fraudulent accounts used by scammers and money launderers to receive and hide stolen funds.
  • Statement 3 — Correct: The Supreme Court explicitly ordered the RBI to create standard operating procedures (SOPs) for banks to immediately freeze (place debit holds on) suspicious accounts.
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