₹54,000 Crore Cyber Fraud Is “Robbery and Dacoity,” Supreme Court Warns, Seeks Strong SOP to Tackle Digital Scams

New Delhi: Expressing serious concern over the rapid rise in cybercrime across the country, the Supreme Court of India on Monday described the alleged siphoning of nearly ₹54,000 crore through digital fraud as nothing less than robbery and dacoity.

The apex court observed that the amount looted through cyber fraud is larger than the annual budgets of several smaller Indian states, highlighting the alarming scale of financial crimes being committed through digital platforms.

Supreme Court Directs Centre to Prepare SOP

A bench comprising Chief Justice Suryakant, Justice Joymalya Bagchi and Justice N.V. Anjaria asked the Central Government to consult key stakeholders including the Reserve Bank of India (RBI), banks, and the Department of Telecommunications (DoT) to prepare a Standard Operating Procedure (SOP) for effectively dealing with such cyber fraud cases.

The court stressed that the absence of a uniform framework is allowing digital criminals to exploit loopholes and evade timely action.

Court Points Towards Possible Bank Negligence or Collusion

The Supreme Court also noted that such large-scale frauds could occur either due to:

• collusion of bank officials, or
• serious negligence and delayed response from banking institutions.

The bench strongly emphasized the need for immediate action by RBI and banks whenever suspicious transactions are detected.

CBI Asked to Identify “Digital Arrest” Scam Cases

Taking note of the increasing cases of so-called “digital arrest” scams, the Supreme Court directed the Central Bureau of Investigation (CBI) to identify and investigate such cases.

The bench also urged state governments to grant necessary approvals for CBI investigations in digital arrest fraud cases, so that coordinated action can be taken against cybercrime networks operating across states.

Banks Must Create Alert Mechanism for Customers

The court clearly stated that banks must play a proactive role in preventing cyber fraud. It suggested that banks should develop a system that alerts customers when large transactions occur under suspicious circumstances—particularly in cases involving digital arrest scams, where victims are often pressured into transferring large sums of money.

The Chief Justice remarked that banks must develop a mechanism to stop such large-scale transactions in time, before victims suffer irreparable financial losses.

Court Issues Strong Warning to the Government

The Supreme Court also issued a stern message to the government, stating that it hopes the Centre will take swift action and not force the court to issue strict directions.

The bench indicated that if RBI can develop an effective mechanism, then the government must ensure its implementation without delay.

Rising Cyber Fraud a National Threat

The Supreme Court’s sharp remarks underline how cyber fraud has emerged as a major national threat, requiring coordinated action between the government, law enforcement agencies, financial institutions, and telecom operators.

The court’s observations are expected to push authorities towards a stronger regulatory framework and faster response systems to protect citizens from increasingly sophisticated digital scams.