Fraud Management & Cybercrime , Fraud Risk Management , Geo Focus: Asia

Indian Prime Minister Warns of Digital Arrest Scam Epidemic

The Indian prime minister is warning citizens to be on the lookout for "digital arrest" scams in which cybercriminals pose as government officials or policemen to trap victims on phone calls and extort them into paying fake fines or court fees.

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Prime Minister Narendra Modi in a recorded public speech Sunday warned about the growing threat of scammers posing as people of authority, such as policemen, judges, tax officials and bank managers, on telephone and video calls to scam unsuspecting citizens.

The scammers collect detailed personal information about victims and use it against them, signaling to victims that they know all about them, Modi said. In video calls, the fraudsters wear uniforms, set up mock police stations or government offices to convince victims they are legitimate authorities, and they threaten victims with arrest or legal action to create a sense of urgency.

"These people create so much psychological pressure on the victim that one gets scared," Modi said. "People from every class and age group fall victim to digital arrest."

The prime minister delivered the warning during his monthly personal podcast, "Mann Ki Baat," which means "words from the heart." According to the prime minister's office, about 230 million people are regular listeners of the monthly podcast, and at least one billion people have heard it at least once.

Modi's personal appeal reflects the government's intense campaign to educate citizens about cybercriminals using digital channels to trick citizens - a threat once confined to phishing texts and emails.

According to the Indian Cyber Crime Coordination Center, which coordinates a whole-of-government response to cybercrime, Indians lost more than $14.2 million to digital arrest scams in the first three months of the year.

In late September, a group of scammers impersonated government investigators and the chief justice of India's Supreme Court in a fake Skype call to defraud wealthy industrialist and Vardhman Group Chairman S.P. Oswal out of about $835,000 after threatening to arrest him on money laundering charges (see: Hackers Used Fake Skype Courtroom to Con Textile Tycoon).

Similar stories from across India surface nearly every day, with scammers primarily targeting elderly citizens and those who have a poor understanding of law enforcement and court processes.

The Ministry of Home Affairs noted the rise in scams in May warning citizens to be on the lookout for digital arrest scams. "Across the country, several victims have lost large amounts of money to such criminals. This is an organized online economic crime and is learned to be operated by cross-border crime syndicates," the ministry said.

Modi stressed on Sunday that the Indian court system does not engage in digital arrests. "This is just a fraud, deceit. It is a lie, a gang of criminals, and those who are doing this are enemies of society," Modi said.

The prime minister advised citizens that if they receive any such call, they should stay calm, avoid sharing personal information with callers, document the call and take screenshots, and immediately report the call to authorities as a cybercrime.