IIT-Bombay student falls prey to digital arrest scam, loses ?7 lakh: How should one alert and protect oneself?

Digital Arrest Scam: A recent scam has caused significant financial loss for a student at IIT-Bombay, who lost Rs. 7.29 lakh after being tricked into a so-called “digital arrest” scam. This emerging type of cybercrime, which is becoming more prevalent, involves fraudsters posing as law enforcement officers and using fear tactics to extract money from their victims. Such scams have already resulted in millions of rupees being swindled from both individuals and businesses.

How a IIT Bombay Student Falls Victim to a Digital Arrest Scam

In this particular case, a 25-year-old student received a call in July from someone claiming to be an official from the Telecom Regulatory Authority of India (TRAI). The caller accused him of being involved in illegal activities, citing 17 complaints against his mobile number. To prevent his number from being deactivated, the student was instructed to obtain a no-objection certificate (NOC) from the police.

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The scam took a more alarming turn when the caller transferred him to another individual who appeared on a WhatsApp video call, dressed as a police officer. This person accused the student of money laundering and demanded his Aadhaar number. The pressure mounted, with the fraudster insisting that the student pay ₹29,500 via UPI to avoid arrest.

Soon, the student was told he was under digital arrest, leaving him unable to contact anyone. The next day, the fraudsters called again, requesting more money. The student shared his bank details, and the scammers managed to steal ₹7 lakh from his account. Only after conducting online research did the student realise he had fallen victim to a scam. He then reported the incident to the police.

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What is a Digital Arrest Scam?

Digital arrest is a type of cyber fraud where scammers pretend to be law enforcement or government officials. They use intimidation and manipulation to trick individuals into believing they are under investigation for serious offenses, such as money laundering. The scammers may use phone or video calls to create the illusion of legitimacy and threaten the victim with arrest unless they pay a sum of money.

Earlier this year, PM Narendra Modi raised awareness about digital arrest scams via his “Mann ki baat” show, advising citizens to "stop, think, and act" if they ever receive such calls. He emphasised that no legitimate investigating agency would conduct interrogations over the phone or video call.

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How the Scam Works

The scam usually begins with a phone call or message from an individual claiming to represent a government agency, such as the CBI, income tax department, or customs. The scammers may claim that the victim is under investigation for some alleged crime and instruct them to participate in a video call for “clarification” purposes. Once the video call is established, they may display official-looking documents or uniforms to enhance their credibility.

After accusing the victim of illegal activity, the fraudsters will demand money for various reasons: to prevent arrest, settle an outstanding investigation, or even as a deposit for their "release." They may present a sense of urgency to pressure the victim into acting quickly, without pausing to think critically. Once the victim pays, the scammers disappear, leaving no trace.

How to Protect Yourself

Awareness is the first step in safeguarding yourself from these types of scams. Here are some precautions to take if you suspect a digital arrest scam:

1. Beware of unsolicited calls: Be cautious if you receive a call from someone claiming to be from a law enforcement agency, especially if they demand money or personal details.

2. Resist pressure tactics: Scammers often create a sense of urgency to force victims into making hasty decisions. Take your time to assess the situation.

3. Verify the caller's identity: If in doubt, contact the agency the caller claims to represent directly to confirm the legitimacy of the communication.

4. Avoid sharing sensitive information: Never share personal, financial, or sensitive details over phone or video calls, particularly with unknown numbers.

5. Recognize official communication channels: Government agencies do not use platforms like WhatsApp or Skype for official business.

6. Report the incident: If you suspect you are being scammed, report the issue to local police or cyber crime authorities immediately.

CERT-In (Indian Computer Emergency Response Team) advises the public to stay vigilant and informed to protect against this growing threat.

What to Do if You are a Victim

If you fall victim to a digital arrest scam, take the following steps:

• Freeze your bank account: Contact your bank immediately to block any unauthorized transactions.
• Report to the authorities: File a complaint on the National Cyber Crime Reporting Portal (cybercrime.gov.in).
• Preserve evidence: Keep records of all communications, including call details, messages, and transaction information.
• Seek legal advice: Consult a lawyer if necessary to navigate the process and understand your rights.

Digital arrest scams are becoming increasingly sophisticated, but by staying alert and following basic precautions, individuals can avoid becoming victims of such fraudulent schemes.