NPCI Issues Guidelines Against Digital Arrest Fraud: Here’s How To Stay Safe

You get a call on the phone from someone claiming to be from a law enforcement body such as the police or income tax department. Their tone is urgent, and the words they speak are steeped in legal jargon which puts you in a state of panic or frenzy. Most probably they would tell you there’s a warrant out for your arrest or someone close to you is under arrest - something related to financial fraud, harassment, tax evasion, or worse some violent crime.

As the panic set in, they demand immediate action, often in terms of ‘pay up’ or face a dire situation. This is a scam quite rampant and prevalent in India, known as ‘Digital Arrest’ fraud.

With the nationwide ease of digital payments due to the ever-growing adoption of the Unified Payment Interface (UPI), users get both security and convenience in transactions and payments. However, the surge of online scams has shown a dark side that comes with this ease. Money once transacted in fraud is becoming increasingly hard to retrieve as scammers design complex ways to extract and run the funds in transaction web chains.

Early identification of potential scams helps protect you and your loved ones, fostering a safer, less-cash economy, for everyone.

What is the Modus Operandi of Digital Arrest Fraud?

The term “digital arrest” might sound like a concept from a sci-fi thriller, but it’s very real and very dangerous. In this scam, fraudsters pose as law enforcement officials such as police officers, CBI agents, income tax officers, and even customs agents. They contact their victims, often via phone calls or video platforms like WhatsApp and Skype.

The setup they create is convincing containing police uniforms, official-looking documents, and even background noises to mimic a busy station.

They accuse victims or their family members of serious crimes like drug trafficking, tax evasion, or money laundering. Then comes the hook, they create an urgency of a fake “digital arrest warrant” that can only be resolved by immediate payment or by sharing sensitive information.

However, there is a modus operandi to these scams and if you are on top of it, it can be proactively avoided.

How to Spot a Digital Arrest Scam

While these scams are sophisticated, there are telltale signs that can help you identify and avoid falling prey to them. The National Payments Corporation of India (NPCI), an umbrella organisation for operating retail payments and settlement systems in India, lists following ways through which you can avoid falling into this scam:

1) Unexpected Contact from ‘Officials’: If you receive a call or message from someone claiming to be from the police, CBI, or any government agency, pause and think. Real law enforcement agencies do not operate investigations over phone calls or video chats, nor do they demand money to clear your name.

2) Fear and Urgency: Scammers use fear as their weapon. They create a sense of urgency, threatening immediate arrest or legal action if you don’t comply. They may even demand a video call to enhance the illusion, showing fake uniforms or documents.

3) Requests for Money or Sensitive Information: Be wary if the caller asks for a payment to “clear your name” or resolve the issue. Phrases like “refundable security deposit” or “escrow account” are often used to make the scam sound legitimate. Remember, no genuine government official will ask you to transfer money.

How To Protect Yourself

Scammers thrive on fear and confusion, but staying calm and informed can be your best defense. Here’s how to protect yourself:

Pause and Verify: If you receive an unexpected call or message, don’t panic. Take a moment to verify the information. Real government officials will never demand money over the phone or through video calls. Use official websites or trusted sources to confirm the caller’s identity.

Report Suspicious Activity: If something feels off, trust your instincts. Report suspicious numbers or messages to the national cybercrime helpline by dialing 1930. You can also use the Department of Telecommunication’s Sancharsaathi portal to report fraud (https://sancharsaathi.gov.in/sfc/).

Document Everything: Save messages, take screenshots, and record details of the interaction. This evidence can be invaluable if you need to file a police report later.