India is facing a chilling cybercrime wave of digital arrest scams and now Banks can be accountable for your loss. Scammers vimpersonate law enforcement, claim you’re involved in illegal activities, and threaten arrest. Victims are forced into long video calls, stripped of privacy, and manipulated into transferring large sums of money.
The scam involves fake identities, intimidation, and emotional control. Most victims transfer funds via UPI, crypto wallets, or gift cards sometimes losing crores.
The National Consumer Disputes Redressal Commission (NCDRC) has issued notices to several banks flagged in these fraud cases. The Commission cited “deficiency in service” implying that banks failed to prevent or act on fraudulent activity in time.
In one shocking case, a Mumbai-based victim lost Rs 5.88 crore to a digital arrest scam. The lawyer representing the victims, Mahindra Limaye, told media that all banks involved in the transaction chain have been served notices, including beneficiary banks.
Banks are expected to follow strict RBI guidelines to monitor suspicious transactions, freeze suspect accounts, and implement real-time fraud detection.
If they fail to:
Act on flagged transactions
Comply with anti-money laundering protocols
Verify large and unusual transfers
They could be found negligent or deficient in service.
If the NCDRC deems the complaints valid, it may seek involvement from FIU (Financial Intelligence Unit) and the I4C (Indian Cyber Crime Coordination Centre). This is a landmark moment. It may set a precedent where banks share responsibility in cyber fraud cases, especially if loopholes in their systems aid criminals.
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Digital scams are evolving. Legal systems are catching up. But your first defense is awareness. If you receive threats from supposed officials don’t panic, don’t pay, and don’t isolate. Call your bank and report immediately
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