New cyber fraud preys on fintech users with fake official threats
Digital Arrest’ is a newly emerging menace threatening all those who have embraced electronic transactions in recent years, spurred by revolutionary advancements in fintech. The fact that no less a person than Prime Minister Narendra Modi mentioned it in his ‘Mann ki Baat’ address on Sunday underscores the severity of this crime. Digital Arrest is the latest in a series of cyber frauds that have become alarmingly common with the surge in financial transactions. Given the massive scale of fintech activity – 14,726 crore transactions during 2023-24 – fraudsters have found a lucrative target.
Impersonating officials from the Central Bureau of Investigation, Income Tax Department, or Enforcement Directorate, these criminals carry out online scams, defrauding victims of their hard-earned money. Threatening unsuspecting account holders, they allege financial misconduct, tax evasion, or money laundering. Scammers even mimic police setups, instructing victims to activate video devices and transfer funds to clear their names.Funds are demanded under the guise of a ‘refundable security deposit’ or ‘escrow account,’ and victims are coerced into remaining in one place and following the fraudsters’ instructions. Fraudsters may wear uniforms resembling official ones to appear credible. Once the payment is made, they vanish without a trace.
The PM’s assurance that government officials never issue warrants through cyber devices and that there is no legal concept of a ‘digital arrest’ offers significant reassurance. People are advised to ignore such calls, reject demands from imposters and seek help via dedicated helplines widely promoted by police and security agencies.