The Supreme Court of India has directed WhatsApp and other digital platforms to submit detailed proposals outlining measures to prevent digital arrest scams and related cybercrimes. The court has also emphasised greater accountability for banks and financial institutions in protecting customers from online fraud.
A bench headed by Chief Justice of India Surya Kant, comprising Justices Joymalya Bagchi and V. Mohana, issued the directions while hearing a suo motu case titled In Re: Victims of Digital Arrest Related to Forged Documents.
The court directed WhatsApp and other online intermediaries to submit their proposed preventive measures to both the Supreme Court and the Indian Cybercrime Coordination Centre (I4C). The matter is scheduled for further hearing on November 23, 2026.
WhatsApp Takes Action Against 9,400 Accounts
- During the proceedings, senior advocate Kapil Sibal, representing WhatsApp, informed the court that the platform had already taken preventive action against approximately 9,400 accounts allegedly linked to digital arrest scams and impersonation of law enforcement agencies.
- He also informed the bench that WhatsApp was developing software to identify suspicious accounts and alert users about potential fraudulent activities.
- The platform is expected to submit an affidavit detailing the preventive steps it has taken.
Supreme Court Calls for Greater Bank Accountability
- The Supreme Court has stressed that banks and other financial institutions must take stronger preventive measures to protect customers from digital fraud.
- The bench said that where an investigation establishes that a cyber fraud occurred because a financial institution failed to exercise due diligence, the institution should be required to compensate the affected customer.
- The proposed compensation should not be less than the amount lost by the victim in such cases.
- The court also highlighted the importance of identifying unusual financial transactions that differ significantly from a customer’s normal banking history.
Suggested Safeguards for Banks
The court highlighted several measures that financial institutions should consider implementing:
- Temporarily suspend suspicious transactions that are inconsistent with a customer’s normal transaction history.
- Automatically alert the nearest police station about suspicious transactions.
- Conduct physical verification to establish whether unusual transactions are genuine.
- Strengthen systems for detecting and reporting cyber fraud.
- Establish mechanisms to restore money and compensate eligible victims.
The Reserve Bank of India (RBI) has been asked to submit a list of all authorised financial institutions before the next hearing. The court is also examining proposed RBI Know Your Customer (KYC) Amendment Directions, 2026.
₹800 Crore Lost in Cyber Fraud This Year
- During the proceedings, the Supreme Court observed that despite a reported 50% decline in cybercrime cases, victims had lost approximately ₹800 crore during the year so far.
- The bench emphasised that the proposed regulatory framework should include enforceable provisions for compensation, preventive intervention and institutional accountability.
- The proposed RBI directions are expected to be notified by November 30 and operationalised by December 31, 2026.
States and Union Territories Asked to Submit Reports
The Supreme Court has also directed law enforcement agencies across all states and Union Territories to submit reports detailing:
- FIRs registered in digital arrest scam cases.
- Progress of investigations.
- Measures for preventing and detecting cyber fraud.
- Suggestions for improving the prosecution of offenders.
The Directors General of Police (DGPs) of all states and Union Territories have been directed to ensure compliance.
Next Hearing on November 23
- The Supreme Court will consider the proposals from digital platforms, the RBI’s regulatory measures and reports from law enforcement agencies during the next hearing scheduled for November 23, 2026.
- The proceedings are part of the court’s efforts to strengthen India’s response to digital arrest scams, online impersonation and financial cybercrime.
