File photo of Supreme Court of India. (Photo credit: Shutterstock)
Srinagar- The Supreme Court has asked WhatsApp and other intermediaries to submit details of measures they propose to undertake to prevent digital arrest scams and related cybercrimes, directing them to simultaneously share their proposals with the Indian Cybercrime Coordination Centre (I4C).
A bench headed by Chief Justice of India Surya Kant, also comprising Justices Joymalya Bagchi and V Mohana, issued the directions in an order uploaded on the court’s website following a hearing on October 29 in the suo motu case titled In Re: Victims of Digital Arrest Related to Forged Documents.
The court has listed the matter for further consideration on November 23.
Senior advocate Kapil Sibal, appearing for WhatsApp, had informed the bench that the platform had taken preventive measures, including action against 9,400 accounts, and would file an affidavit detailing the steps undertaken.
He had also told the court that WhatsApp was developing software to identify suspicious accounts and alert users.
“WhatsApp LLC (A Meta company) and other concerned intermediaries are also directed to apprise this Court of the measures they propose to undertake to prevent the digital arrest scams and related cybercrimes. They shall also simultaneously submit their proposals to the I4C,” the bench said.
The court also reiterated the need to hold financial institutions accountable for digital arrest scams and other cyber frauds, emphasising that banks must compensate victims where investigations establish that fraud occurred due to their failure to exercise due diligence.
“We reiterate and emphasize that the regulatory measures proposed by the Reserve Bank of India (RBI) must mandate and incorporate suitable provisions that require financial institutions to indemnify victims of digital arrest scams and other cyber frauds and pay suitable compensation not less than the amount lost by the customer, where it is established that the fraud or crime occurred due to the failure on the part of the financial institution to exercise due diligence in preventing or reporting the act/incident,” the bench said.
During the hearing, Chief Justice Surya Kant questioned why banks could not intervene when customers attempted to transfer unusually large sums of money that were inconsistent with their established transaction patterns.
The court emphasised the need for preventive safeguards, including temporarily suspending suspicious transactions that deviate from an account’s past transaction history, automatically alerting the nearest police station and subsequently physically verifying such transactions to establish their genuineness.
The bench also directed the RBI to submit a list of all authorised financial institutions before the next hearing to facilitate effective implementation of the proposed regulatory measures.
Observing that cybercrime incidents had declined by 50 per cent but victims had still lost around ₹800 crore so far this year, the court stressed that the proposed regulatory framework must incorporate enforceable provisions for compensation, preventive intervention and institutional accountability.
The Chief Justice said the court would first examine the proposed RBI Know Your Customer (KYC) Amendment Directions, 2026, before allowing the regulatory process to proceed.
The proposed directions are scheduled to be notified by November 30 and operationalised by December 31.
Describing banks as a “protective umbrella” for vulnerable customers, the Chief Justice said financial institutions had access to account holders’ transaction histories and should use that information to identify and prevent suspicious transfers before money leaves an account.
Attorney General R Venkataramani, appearing for the Centre and other authorities, informed the bench that substantial work had been undertaken to improve the detection of suspicious transactions and strengthen preventive mechanisms within the banking system.
The Supreme Court also directed law enforcement agencies of all states and Union Territories to submit reports detailing FIRs registered in digital arrest scam cases and the investigations conducted.
The agencies have additionally been asked to provide suggestions for preventing, detecting and prosecuting such offences.
The Directors General of Police of all states and Union Territories have been directed to ensure compliance. The reports are to be submitted to the inter-departmental committee coordinating the government’s response, with copies of the reports furnished to the court also being forwarded to the committee.
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