New Delhi, November 10: The Supreme Court has directed WhatsApp and other digital intermediaries to submit details of measures proposed to prevent digital arrest scams and related cybercrimes, stressing the need for stronger safeguards to protect people from online fraud.
A bench headed by Chief Justice of India Surya Kant, comprising Justices Joymalya Bagchi and V Mohana, asked the platforms to submit their proposals to the Indian Cybercrime Coordination Centre (I4C) as well as place them before the court.
The directions were issued in a suo motu case titled ‘In Re: Victims of Digital Arrest Related to Forged Documents’. The matter has been listed for further hearing on November 23.
During an earlier hearing on October 29, senior advocate Kapil Sibal, appearing for WhatsApp, informed the court that the platform had already taken preventive action against around 9,400 accounts suspected of involvement in fraudulent activities.
He also told the bench that WhatsApp was developing software to identify suspicious accounts and alert users about potential scams. The platform is expected to submit an affidavit detailing the preventive measures undertaken.
The Supreme Court also highlighted the responsibility of financial institutions in preventing digital arrest scams and other cyber frauds.
In its October 29 order, the bench emphasised that banks and other financial institutions should compensate victims when investigations establish that fraud occurred due to their failure to exercise the required due diligence.
The court observed that the Reserve Bank of India (RBI) should incorporate enforceable provisions in its proposed regulatory framework requiring financial institutions to reimburse victims for losses suffered due to such failures.
The bench also stressed the need for banks to identify unusual financial transactions that differ significantly from a customer’s established transaction history.
It suggested safeguards such as temporarily suspending suspicious transactions, automatically alerting the nearest police station and conducting physical verification to establish whether the transactions were genuine.
The court further directed the RBI to submit a list of all authorised financial institutions before the next hearing to ensure effective implementation of the proposed regulatory measures.
Expressing concern over the scale of cyber fraud, the bench observed that although reported cybercrime incidents had declined by 50 per cent, victims had collectively lost around Rs 800 crore so far this year.
Chief Justice Surya Kant described banks as a protective shield for vulnerable customers, noting that financial institutions possess detailed information about account holders and their transaction patterns and should use it to prevent suspicious transfers before money is lost.
The bench also said it would first examine the proposed RBI Know Your Customer (KYC) Amendment Directions, 2026, before allowing the regulatory process to move forward.
The proposed directions are expected to be notified by November 30 and implemented by December 31.
Meanwhile, Attorney General R Venkataramani, representing the Centre and other authorities, informed the court that considerable work had been undertaken to improve the detection of suspicious transactions and strengthen preventive mechanisms within the banking system.
The Supreme Court has also directed law enforcement agencies across all states and Union Territories to submit detailed reports on FIRs registered in digital arrest scam cases and the investigations conducted.
The agencies have been asked to provide recommendations for preventing, detecting and prosecuting such offences. Directors General of Police (DGPs) have been instructed to ensure compliance with the directions.
The reports will be submitted to the inter-departmental committee coordinating the government’s response to cybercrime, with copies of the reports filed before the court also being forwarded to the committee.
