Bivas Chatterjee is a Special Public Prosecutor, Cyber & Electronic Evidence, Govt of West Bengal.
In today’s world, particularly in India, one of the most common forms of cybercrime is digital arrest. In this clever scam, scammers imitate law enforcement personnel to extract enormous sums of hard-earned money from unsuspecting middle-class residents. This crime has grown to terrifying proportions, frequently involving well-coordinated, cross-border criminal networks that operate with meticulous planning and sophisticated technology.
Such fraudulent actions are more than just individual scams; they pose a significant economic hazard, draining resources from victims and damaging financial stability. In essence, digital arrest is a sort of economic terrorism, waging an economic war against the country.
Modus Operandi
Initially, scammers call a potential victim and scare them with arrest or harsh repercussions while pretending to be police officials. They utilise a variety of strategies to persuade the victim that they are involved in a criminal case. To capture the victim’s faith, scammers transmit fake and fraudulent documents pretending to be issued by various police departments. They even force the victim to engage in a video call while they pretend to be police officers, wearing a police uniform.
Several cases of digital arrest have been reported across the country, highlighting the urgent need for awareness and preventive measures. Here are some notable instances:
(A) Bangalore Victim Held Under Digital Arrest
The North East Division Cybercrime Police have registered a case where fraudsters, posing as officials from the Telecom Regulatory Authority of India (TRAI), manipulated and extorted a victim by falsely implicating him in financial crimes.
The scammers threatened the victim with prosecution under the Prevention of Money Laundering Act, 2002, claiming that his bank accounts were under investigation. Under constant intimidation, he was virtually held hostage for nearly a month while they accessed his bank accounts and transferred large sums of money.
To make the deception more convincing, the criminals falsely accused him that his SIM card is linked to fraudulent activities, with an alleged case registered by the Mumbai Police. They also accused him that his Aadhaar card is being misused to open a bank account involved in money laundering. Fearful of legal consequences, the victim complied with their demands, resulting in significant financial loss.
(B) Japanese Man Falls Victim to Digital Arrest
In another worrisome case, a Japanese national working in Bengaluru was robbed of ₹35.5 Lakhs by cybercriminals acting as Mumbai Police officers. The scammers falsely accused him of involvement in a money laundering case. They intimidated and tricked him to extract a huge payment. The victim first received a call from someone impersonating a Telecom Regulatory Authority of India (TRAI) official. The scammers digitally arrested and coerced him into transferring ₹35.5 Lakhs under false pretences of clearing his identity from fictitious accusations.
(C) Karnataka Government Employee Defrauded of ₹19 Lakhs
A Karnataka State Government employee was digitally arrested for six hours by someone impersonating himself as a Mumbai Crime Branch officer. The fraudster said that the victim’s SIM card was being used for criminal activities and subjected him to severe harassment, ultimately swindling
₹19 Lakhs from him. The victim was detained in a video conference for six hours while the fraudster conducted a fake online investigation, during which he obtained important financial information. The victim lost his hard-earned money as a result of the incident.
(D) Elderly Woman Duped of ₹5.66 Crores
In a shocking case, a 69-year-old woman lost a staggering ₹5.66 Crores after being digitally arrested for nearly 20 days in a Skype call. Following a pattern similar to other scams, the fraudsters falsely claimed that her mobile number, linked to her Aadhaar, was connected to a money laundering case. Under the pretence of verifying her financial status, they convinced her into transferring all her funds, falsely assuring her that the money would be refunded after verification.
Digital Arrest Case in West Bengal
A disturbing case of digital arrest fraud was recently reported in West Bengal, where a victim was coerced into transferring ₹1 Core under false pretenses.
The victim received a WhatsApp call from someone pretending to be a Sub-Inspector of the Mumbai Police. The fraudster falsely claimed that the victim’s name had been associated with a financial fraud case due to insolvency concerns. To make the hoax appear real, the scammer provided fake legal documents with the victim’s name incorrectly recorded as an accused party.
The caller intimidated the victim and his wife, threatening to arrest them if he did not comply. Under intense psychological pressure, the fraudster prevented the victim from stopping the call, thus placing him under digital arrest. The victim was forced to deposit ₹1 Crore into numerous accounts, which he provided with IFSC data over WhatsApp chat. The conversation recordings clearly reveal the scammer’s urgent instructions to transfer the funds right away.
Investigation and Evidence Collected
The investigation into this digital arrest scam has revealed a highly organised financial fraud network. Authorities have gathered crucial evidence, leading to significant breakthroughs in the case.
The bank statements containing the debit details have been seized from the complainant, and the authenticated bank account statement, which includes fraudulent debit transactions, provides clear evidence of the crime.
The authenticated Bank AOF (Account Opening Form), KYC (Know Your Customer), and statements from all first-layer beneficiaries have been collected. These documents provide crucial evidence that the amounts were credited to the fraudulent accounts and subsequently utilised via instant transfers.
The fraudulent accounts were opened using forged documents by the accused and their associates, allowing for immediate transfers of funds to other accounts. This indicates that the caller, the account holders, and others are all part of a criminal conspiracy and are liable for the crime.
The account in question is registered in the name of one of the fraudsters, and the transactions are clearly reflected in the statement. Additionally, numerous NCRP (Non-Cognizable Report) complaints have been filed against this bank account.
The seized statement from the complainant, along with the authenticated statements collected from the bank, further confirm the fraudulent transactions. By analysing the various authenticated account opening forms, KYC documents, and bank statements, investigators have successfully cracked the criminal gang involved.
The person impersonating as a Sub Inspector of the Mumbai Police set a trap for the victim using the ‘Digital Arrest’ tactic. The impersonator shared the account details of a key criminal via WhatsApp to enable the deposit of the money.
CDR (Call Data Records) and other TSP (Telecom Service Provider) data were used to establish connections between various apprehended offenders. The phones used in the crime were taken from the accused’s possession. Furthermore, other bank accounts belonging to other individuals and businesses were recovered from their possession.
A bank employee who activated numerous important bank accounts related to the crime is also being investigated. The chief fraudster, who leads a team based in Cambodia, oversees a network of similar crooks participating in the commission of these digital crimes.
Seventeen people have been arrested thus far, and investigation is ongoing.
A Heartbreaking Impact
Perhaps the most heart-wrenching aspect of this case is that the victim’s wife is undergoing a cancer battle. They have now lost their entire life-savings to fraudsters. Left with no financial resources, they are now struggling to afford the expensive cancer treatment, making this crime not just a financial disaster but also a life-threatening nightmare for the victim’s family.
Global Nexus of Digital Arrest Crimes
Investigations into digital arrest scams have revealed a highly organised international cybercrime network. Strong evidence suggests that these crimes are being orchestrated from various parts of the world, making law enforcement efforts highly challenging.
A significant portion of these crimes is being operated from Cambodia, Hong Kong, and other foreign jurisdictions. Many of these countries lack mutual legal assistance (MLA) and extradition treaties with India, creating significant legal and investigative roadblocks. Lack of official cooperation agreements between India and foreign countries restricts the authority to trace, detain, and punish the primary criminals.
Investigators have had limited success in cracking down Indian-based facilitators, while the masterminds continue to operate from abroad with impunity. The fraud funds are transferred to Indian bank accounts, which are frequently opened using false paperwork. These funds are subsequently translated into digital currencies like cryptocurrency and transmitted to anonymous overseas wallets, making financial tracking nearly impossible.
Digital Arrest and Digital Slavery
During investigations into digital arrest and digital slavery, it was discovered that young people from India were lured to lucrative jobs in Cambodia and other parts of the world. However, upon arrival, their passports and other documents are seized, and they are forced to work in fraudulent call centres. These individuals are then coerced into committing crimes by impersonating law enforcement officers so they can then extort money from victims. The fraudsters send forged documents bearing the logos and stamps of various law enforcement agencies. They even wear police uniforms during video calls. The victims, upon seeing the official appearance of the perpetrators, are intimidated and manipulated, often divulging their financial details. As a result, their hard-earned money is siphoned off without their knowledge.
Challenges of Investigating Digital Arrest Crimes
Despite digital arrest being one of the most prevalent crimes in the virtual world today, investigations remain a significant challenge for law enforcement agencies across India. Some of the key hurdles include:
1) Cross-Border Investigation
A significant portion of these crimes is committed from countries outside of India, leading to challenges typically faced in trans-border crime investigations. The international nature of these offences complicates coordination and evidence collection, especially when perpetrators are based in regions where India has limited legal cooperation.
2) Dealing with Cryptocurrency
In many cases, large sums of money are converted from Indian Rupees to cryptocurrencies, facilitating more seamless international transactions for the fraudsters. Investigating the money trail becomes extremely difficult, as digital currencies are harder to trace. When Indian perpetrators are arrested, it is often discovered that they only receive a small fraction of the stolen funds. Indian agencies largely depend on international conversion portals to track the flow of money, but this method poses a major limitation in gathering concrete evidence.
3) False and Fraudulent KYC Verification
Thousands of fraudulent bank accounts are created, often with the assistance of corrupt bank officials who facilitate the movement of stolen funds. The core issue here is fake KYC verification which allows criminals to bypass regulatory checks. In one recent case in Bengal, investigators uncovered thousands of fake accounts created specifically to handle illicit transactions. These accounts serve as a layer upon layer of fraudulent channels, through which stolen money is funnelled to the fraudsters.
4) Lack of Awareness
A significant challenge is the lack of awareness among the public, particularly among senior citizens, who are often the primary targets of such scams. When victims are digitally detained, they often fear cooperating with law enforcement, worried they might be falsely accused or prosecuted. By the time victims realise they have been scammed, the crime has already been carried out, making it much harder to trace the evidence.
5) Training of Investigating Agencies
A critical need for law enforcement agencies is specialised training in digital crime investigations. Investigating officers must be equipped with the knowledge and skills to tackle this gruesome economic terrorism that is widespread across India. Without this expertise, the ability to effectively counter these crimes remains limited.
The Most Effective Remedy: Awareness
The simplest and most effective remedy is widespread awareness. It is crucial to inform the public, especially senior citizens, that digital arrest is part of a well-organised criminal network. Many victims are unaware of the severity of the crime until it is too late. Once the funds are siphoned off, often beyond India’s borders, it becomes nearly impossible to recover the stolen money. Raising awareness about this form of crime and its consequences is essential to protecting vulnerable individuals from falling victims to such scams.
Penal Law Provisions for Digital Arrest Cases According to Bharatiya Nyaya Sanhita (BNS), 2023
The following sections of the Penal Law should be invoked in subsequent cases related to digital arrest:
1. 319(2) BNS: Whoever cheats by personation shall be punished with imprisonment of either description for a term which may extend to five years, or with fine, or with both.
2. 318(4) BNS: Whoever cheats and thereby dishonestly induces the person deceived to deliver any property to any person, or to make, alter or destroy the whole or any part of a valuable security, or anything which is signed or sealed, and which is capable of being converted into a valuable security, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.
3. 338 BNS: Whoever forges a document which purports to be a valuable security or a will, or an authority to adopt a son, or which purports to give authority to any person to make or transfer any valuable security, or to receive the principal, interest or dividends thereon, or to receive or deliver any money, movable property, or valuable security, or any document purporting to be an acquittance or receipt acknowledging the payment of money, or an acquittance or receipt for the delivery of any movable property or valuable security, shall be punished with imprisonment for life, or with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine.
4. 336(3) BNS: Whoever commits forgery, intending that the document or electronic record forged shall be used for the purpose of cheating, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.
5. 61(2) BNS: Whoever is a party to a criminal conspiracy – (a) to commit an offence punishable with death, imprisonment for life or rigorous imprisonment for a term of two years or upwards, shall, where no express provision is made in this Sanhita, for the punishment of such a conspiracy, be punished in the same manner as if he had abetted such offence; (b) other than a criminal conspiracy to commit an offence punishable as aforesaid shall be punished with imprisonment of either description for a term not exceeding six months, or with fine or with both.
6. 351(2) BNS: Whoever commits the offence of criminal intimidation shall be punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both.
7. 317(4) BNS: Whoever habitually receives or deals in property which he knows or has reason to believe to be stolen property, shall be punished with imprisonment for life, or with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine.
8. 66C ITAA (Information Technology (Amendment) Act, 2008: Whoever, fraudulently or dishonestly make use of the electronic signature, password or any other unique identification feature of any other person, shall be punished with imprisonment of either description for a term which may extend to three years and shall also be liable to fine which may extend to rupees one lakh.
9. 66D ITAA 2008: Whoever, by means of any communication device or computer resource cheats by personation, shall be punished with imprisonment of either description for a term which may extend to three years and shall also be liable to fine which may extend to one lakh rupees.
