Definition
Digital Arrest Scam
A digital arrest scam is a fraud where impostors posing as police or agencies coerce victims via video call into transferring money under threat of fake arrest.
In a digital arrest scam, fraudsters impersonate police, CBI, customs or other officials over phone or video call, falsely accuse the victim of a crime (such as a parcel with contraband), and keep them under constant surveillance ('digital arrest') while pressuring them to transfer money to 'clear their name'.
There is no such thing as a legal 'digital arrest' in India — genuine agencies do not demand money transfers over video calls. The RBI and authorities repeatedly warn the public about this.
Protect yourself by disconnecting such calls, never transferring money under threat, and reporting to the cyber-crime helpline. Awareness is the best defence against these high-pressure social-engineering frauds.
Related terms
- Two-Factor Authentication (Payments)Two-factor authentication requires two independent proofs of identity — such as a password plus an OTP — to authorise a payment, a long-standing RBI requirement for many transactions.
- Financial InclusionFinancial inclusion is the goal of ensuring all individuals and businesses, especially the underserved, have access to useful, affordable financial products like accounts, credit and payments.
- Mule AccountA mule account is a bank account used, often by unwitting individuals, to receive and move fraud proceeds; spotting and freezing such accounts is a key anti-fraud focus.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.