Supreme Court Flags Bank Lapses in Digital Arrest Scams, Orders Nationwide Preventive Measures

The Supreme Court, while hearing a suo motu case on rising digital arrest scams, expressed serious concern over alleged negligence and possible connivance of bank officials in facilitating fraudulent transactions.

Chief Justice of India Surya Kant observed that banks, as trustees of public money, are increasingly becoming a liability by extending loans to fraudsters and failing to carry out proper due diligence.

The Court flagged the misuse of mule accounts and weak monitoring systems.

The Bench directed coordinated action by the CBI, RBI, MeitY and other agencies, and ordered nationwide implementation of standard operating procedures and inter-agency mechanisms to prevent such cyber frauds and recover losses suffered by victims.