India’s rapid digital expansion has not been accompanied by equally robust security and regulatory frameworks | Photo credit: PTI GRAPHICS
Known in the US as “virtual capture” or government impersonation, the FBI reported a staggering $1.6 billion in losses last year. In Australia and Canada the phenomenon is known as ‘virtual kidnapping’, with the former having lost A$2 billion and the latter around C$635 million. during the same period.
In India, the rise in “digital busts” – where scammers pose as law enforcement agencies to extort money – is not just a cybercrime trend, but a reflection of deeper structural and societal vulnerabilities. The scale of digital arrest fraud has reached significant proportions; Fraudsters have defrauded people to the tune of ₹3,000 crore through these operations. These scams succeed not because they are sophisticated, but because they exploit gaps in governance, banking infrastructure and long-standing social behavior, making citizens extremely susceptible to fear-based manipulation.
Data from the National Cyber Crime Reporting Portal shows the alarming rise in digital arrest fraud in India, with 39,925 cases reported in 2022. The situation deteriorated sharply in 2024, with the number of cases rising to 1,23,672, amounting to a loss of citizens of ₹1,936 crore. And the trend has continued into 2025, with 17,718 cases reported in the first few months of the year.
Structural causes
India’s rapid digital expansion has not been accompanied by equally robust security and regulatory frameworks. Cybercrime enforcement remains uneven across states, with several local police units lacking dedicated digital forensics capabilities. Scammers take advantage of these enforcement gaps, often operating from cross-border call centers or states with slower cyber polices.
The pace of digitalization has also outpaced the development of cybersecurity measures. While government and financial systems have moved online, public awareness and structural protections – such as caller authentication, AI-powered fraud detection, real-time alert infrastructure and unified reporting platforms – are lagging behind.
In addition, telecom operators and law enforcement agencies do not always work together seamlessly, resulting in delays in blocking suspicious numbers or detecting scam networks. Add to this the slow legal processes and limited national cyber awareness campaigns, and scammers find an environment where the risk of getting caught is low, while the chance of manipulating uninformed citizens is high.
In addition to systemic issues, digital arrest scams also thrive because they tap into India’s deep-rooted social psychology. Fear of police, government agencies, or legal trouble is unusually high, partly due to historical distrust of law enforcement and partly due to limited public understanding of due process.
India’s low digital literacy rates further compound the problem. Many people cannot distinguish genuine government communications from fraudulent threats, heightening the panic of being falsely accused. A stern voice invoking ‘Narcotics Bureau’, ‘Cyber Cell’ or ‘High Court Warrant’ is often enough to induce compliance without verification.
Another critical factor is the stigma surrounding legal or moral accusations, especially in socially conservative or backward regions. Many things that are considered normal in modern society – such as private chats, personal photos or disagreements – are still treated as taboo. This makes people vulnerable to long-term extortion.
Finally, a widespread lack of knowledge of the law and legal processes leads people to believe that digital arrests, video calls from ‘cops’ or online bail payments are legitimate processes.
To reduce the number of digital arrests, both structural and societal shortcomings must be addressed. Strengthening cybercrime units in all states, building real-time caller verification systems, improving telecom-police coordination and conducting sustained national awareness campaigns are essential first steps. When people no longer blindly fear authority and the system no longer provides loopholes for scammers, digital arrests will lose their grip.
Rath is a former central banker and Sharma is an independent researcher. Opinions are personal
Published on January 21, 2026
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