In digital arrest scams, fraudsters impersonate law enforcement officials from the police, or other law enforcement agencies, via video calls, claiming victims are under investigation for serious crimes. Victims across India are believed to have collectively lost nearly Rs 3,000 crore to digital arrest scams, prompting the Supreme Court to take suo motu cognizance of the issue last October. According to another official involved in the exercise, an insurance mechanism to cover fraud-related losses in the banking system is also on the table. Meanwhile, sources said a formal fraud insurance proposal is yet to reach top insurance companies. “Insurance companies can form a fraud insurance pool like a terror pool, and this idea has been internally mooted by the Reserve Bank to tackle the rising surge of digital frauds, including ‘digital arrest’ scams,” he said.

Source: Indian Express January 21, 2026 04:31 UTC