Supreme Court Demands Action Against 'Digital Dacoity'

The Supreme Court has condemned the massive siphoning of over Rs 54,000 crore through digital fraud, urging the creation of a standard operating procedure. It emphasized the proactive role banks must play, highlighting the use of AI and stressing compensation for victims of 'digital arrest' scams.

The Supreme Court has labeled the diversion of over Rs 54,000 crore via digital fraud as an alarming case of 'robbery or dacoity.' It has urged the Centre to formulate a standard operating procedure in collaboration with the RBI, banks, and the Department of Telecommunications to effectively handle such fraud cases.

The court underscored its concern over the 'menace' of digital arrest scams, urging banks to take proactive measures against cyber fraud. It highlighted that when a sudden large withdrawal occurs in accounts typically used for smaller transactions, banks should alert customers. This, it noted, is a part of their fiduciary duty.

The judicial bench also directed the implementation of preventive measures and urged a constructive meeting between stakeholders to ensure compensation for victims. The court demanded detailed reports before further hearings, pointing to the essential role of AI tools in detecting and averting suspicious transactions.

(With inputs from agencies.)