Supreme Court Demands Action from WhatsApp to Combat Digital Arrest Scams

The Supreme Court of India has directed WhatsApp and other digital platforms to outline their strategies for combating digital arrest scams and related cybercrimes. During a recent hearing, the court emphasized the need for financial institutions to be held accountable for such frauds, insisting on compensation for victims. The court also called for preventive measures to be implemented by banks to protect customers from unusual transactions. With a significant amount of money lost to cyber fraud this year, the court is pushing for a robust regulatory framework from the Reserve Bank of India to ensure accountability and compensation for victims. The next hearing is scheduled for November 23.

By Narendra Chaudhary Nov 10, 2026, 15:55 IST

Supreme Court's Directive to WhatsApp and Financial Institutions

New Delhi: The Supreme Court has instructed WhatsApp and other digital platforms to inform the court about their strategies to mitigate digital arrest scams and associated cybercrimes in India.

This directive was issued following a hearing on October 29 regarding a suo motu case titled 'In Re: Victims of Digital Arrest Related to Forged Documents.' The bench, led by Chief Justice Surya Kant, has requested WhatsApp and similar platforms to submit their proposals to the Indian Cybercrime Coordination Centre (I4C) as well.

The bench, which also includes Justices Joymalya Bagchi and V Mohana, has scheduled the matter for further discussion on November 23.

During the proceedings, senior advocate Kapil Sibal, representing WhatsApp, informed the bench that the platform had already taken steps to combat these issues, including the suspension of 9,400 accounts, and would provide an affidavit detailing these actions.

Sibal mentioned that WhatsApp is developing software aimed at identifying suspicious accounts and alerting users.

The court's order emphasized that WhatsApp LLC (a subsidiary of Meta) and other relevant intermediaries must report their proposed measures to prevent digital arrest scams and related cybercrimes, submitting these plans to the I4C simultaneously.

On October 29, the Supreme Court highlighted the need for financial institutions to be held accountable for digital arrest scams and other cyber frauds, insisting that banks should compensate victims for losses incurred when investigations reveal that the fraud resulted from the institution's negligence.

The bench reiterated that the regulatory measures suggested by the Reserve Bank of India (RBI) should include provisions mandating financial institutions to indemnify victims of digital arrest scams and other cyber frauds, ensuring compensation not less than the amount lost by the customer when fraud is proven to be due to the institution's failure to exercise due diligence.

During the hearing, the Chief Justice questioned why banks do not intervene when customers attempt to transfer unusually large sums inconsistent with their transaction history.

The court emphasized the necessity of preventive safeguards for financial institutions, which may involve temporarily halting unusual transactions, notifying local police stations, and verifying the legitimacy of reported transactions.

To ensure the effective implementation of the RBI's proposed regulatory measures, the bench instructed the RBI to present a list of all authorized financial institutions at the next hearing.

Despite a reported 50% decrease in cyber crimes, the bench noted that victims have lost Rs 800 crore this year, stressing that the RBI's regulatory framework must include enforceable provisions for compensation, preventive measures, and institutional accountability.

The Chief Justice indicated that the bench would first review the proposed RBI Know Your Customer (KYC) Amendment Directions, 2026, before allowing the regulatory process to advance.

These directions are expected to be notified by November 30 and implemented by December 31.

Describing banks as a 'protective umbrella' for vulnerable customers, the Chief Justice remarked that financial institutions have access to their account holders' information, including transaction histories, and should leverage this data to prevent fraud before funds are withdrawn.

Attorney General R Venkataramani, representing the Centre and other authorities, informed the bench that significant progress has been made in enhancing the detection of suspicious transactions and strengthening preventive measures within the banking sector.

The bench also directed law enforcement agencies across all states and Union territories to submit reports detailing FIRs related to digital arrest scams and the investigations stemming from them.

These agencies have been tasked with providing recommendations for the prevention, detection, and prosecution of such offenses.

The Directors General of Police (DGPs) in all states and Union territories have been instructed to ensure compliance with these directives.

The bench mandated that the reports be submitted to the inter-departmental committee coordinating the government's response, with copies forwarded to the committee.