While hearing the digital arrests suo motu case, the Supreme Court has expressed concern over the continued prevalence of “digital arrest” scams, with
CJI questioning and wondering how educated citizens continue to fall prey to such frauds. The CJI expressed shock that despite all the public awareness campaigns, news reports and Court orders, people are falling prey. “What we are shocked about - why are people not realizing? What is wrong with victims? Are they not normal persons? This is everywhere in the media,” CJI Kant observed. The amicus submitted that fear of arrest drives victims and that some psychologists describe the phenomenon as a form of hypnosis, with people continuing to fall prey despite awareness campaigns. CJI Kant expressed frustration that even educated individuals are being duped and questioned what values such victims would pass on to the next generation. He pointed out that people can easily verify the authenticity of purported court orders on official court websites. "We have strong neighborhood. We feel frustrated- all educated people getting [duped]. What will you pass on to next generation if you get digitally arrested at this age? [On abuse of fake orders] People can go on website of courts to find if there's order." Significantly, SC said it will examine RBI’s proposed anti-cyber fraud regulations before permitting their notification. The CJI Bench directed that the regulations must require financial institutions to compensate victims with at least the amount lost where fraud results from the institution’s failure of due diligence.
