The Supreme Court has asked WhatsApp and other online platforms to tell the court what steps they will take to stop digital arrest scams. Banks must compensate victims where an investigation finds the fraud happened because the bank failed to exercise due diligence. The next hearing is on 23 November.
Image: AI-generated illustration.
Key takeaways
- WhatsApp and other intermediaries must apprise the court of the measures they propose to stop digital arrest scams, and submit the same proposals to the Indian Cybercrime Coordination Centre (I4C).
- WhatsApp told the court it had acted against about 9,400 accounts and is building software to warn users about suspicious accounts.
- Banks must indemnify victims and pay compensation of not less than the amount lost, where an investigation establishes the fraud happened because the bank failed to exercise due diligence.
- The RBI’s proposed KYC Amendment Directions, 2026 are expected to be notified by 30 November and in force by 31 December.
- Victims lost about Rs 800 crore to cybercrime so far this year, even though reported cybercrimes fell by about 50%.
01. What the court ordered
The directions come in an order uploaded to the Supreme Court’s website after a hearing on 29 October. The court is hearing the matter on its own motion, in a suo motu case titled In Re: Victims of Digital Arrest Related to Forged Documents.
A bench headed by Chief Justice of India Surya Kant, with Justices Joymalya Bagchi and V Mohana, directed WhatsApp LLC, a Meta company, and other concerned intermediaries to apprise the court of the measures they propose to undertake to prevent digital arrest scams and related cybercrimes. The platforms must send their proposals to the I4C at the same time.
The bench has listed the case for further hearing on 23 November. It will then look at the proposals from the platforms, the RBI’s regulatory measures and reports from law enforcement agencies.
02. What WhatsApp told the court
WhatsApp, represented by senior advocate Kapil Sibal, said it had already acted against 9,400 accounts. It is also developing software to identify suspicious accounts and warn users.
The court wants more than that. It has asked WhatsApp and other platforms to set out, in writing, what they plan to do to prevent these scams. The order does not fix a penalty. It asks for a plan first.
03. Banks must pay when they are negligent
The bench put the most weight on banks. It said financial institutions must be held accountable for digital arrest scams and other cyber frauds. Where an investigation establishes that the fraud happened because the bank failed to exercise due diligence in preventing or reporting it, the bank must indemnify the victim and pay compensation of not less than the amount lost.
This is not an automatic payout for every victim. Compensation applies only where the bank’s failure is established. The court reiterated that the RBI’s proposed regulatory measures must include provisions that make this duty mandatory.
The court also directed the RBI to submit a list of all authorised financial institutions before the next hearing. It said it would first examine the proposed RBI Know Your Customer (KYC) Amendment Directions, 2026, before the regulatory process moves ahead. The directions are proposed to be notified by 30 November and operationalised by 31 December.
04. The scale of the problem
The court noted that reported cybercrimes fell by about 50%, yet victims still lost around Rs 800 crore so far this year. That gap is why the bench is pushing for prevention and compensation together, rather than either one alone.
In a digital arrest scam, fraudsters pose as police or other officials on a video or voice call. They claim the victim is under investigation and pressure them to transfer money. No real police force arrests people over a video call or asks for money to avoid arrest.
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05. The key facts
| Point | Detail |
|---|---|
| Case | In Re: Victims of Digital Arrest Related to Forged Documents (suo motu) |
| Bench | CJI Surya Kant, Justices Joymalya Bagchi and V Mohana |
| Hearing | 29 October 2026; order uploaded 10 November; next hearing 23 November |
| Platforms | WhatsApp and other intermediaries to submit anti-scam plans to the court and to I4C |
| WhatsApp action so far | About 9,400 accounts acted against; warning software in development |
| Bank duty | Compensate not less than the amount lost, where negligence is established |
| RBI directions | KYC Amendment Directions, 2026; notify by 30 November, in force by 31 December |
| Losses this year | About Rs 800 crore, despite cybercrimes falling about 50% |
Sources: Supreme Court order of 29 October 2026, reported by Times Now, The New Indian Express and ET Now on 10–11 November 2026.
06. FAQs
What is a digital arrest scam?
Fraudsters pose as police or officials on a call and claim you are under investigation. They pressure you to pay money. Real police do not arrest people over video calls or demand money to drop a case.
Will my bank refund me if I am scammed?
Only where an investigation establishes that the fraud happened because the bank failed to exercise due diligence. In that case the court says compensation must be not less than the amount lost. It is not automatic for every victim.
What happens next?
The case returns to the Supreme Court on 23 November. The court will examine the platforms’ proposals and the RBI’s KYC directions.
