‘Digital Arrest’ Scam: NPCI alerts UPI users

NPCI warns users about the rising ‘Digital Arrest’ scam targeting UPI users, in which scammers posing as officials use fear tactics to extract money or sensitive data. Be cautious if someone who claims to be from government agencies like the police, CBI, income tax officers, or customs agents, contacts you.

The ‘Digital Arrest’ scam is a multilayered online fraud in which scammers impersonate anyone from government officials to cops to financial regulators. Using fear tactics, the scam normally seeks to convince victims that they are being investigated for crimes such as money laundering or tax evasion. Then comes the hook, they create an urgency of a fake “digital arrest warrant” that can only be resolved by immediate payment or by sharing sensitive information. This may involve the imposters putting on fake uniforms, using government logos, or setting up some curtains as a makeshift police station for their video calls. Victims are often persuaded to reveal sensitive information or send money to clear the victims or assist in the investigation.

The National Payments Corporation of India (NPCI) has come up with an urgent advisory alerting users to a growing threat known as the ‘Digital Arrest’ scam. While digital payments are now commonplace in India, this mode of payment has witnessed a rise in online fraud. The NPCI has pointed out the need for public awareness through their advisory to prevent such frauds while stressing the safe use of UPI platforms such as Google Pay or PhonePe, especially with the growing acceptance of digital payments in India.

Modus operandi:

The scammers pose as officials, using fear tactics to extract money or sensitive data. Be cautious if someone claims to be from government agencies like the police, CBI, income tax officers, or customs agents, and contacts you.

While these scams are sophisticated, there are telltale signs that can help you identify and avoid falling prey to them. The National Payments Corporation of India (NPCI), an umbrella organisation for operating retail payments and settlement systems in India, suggests being cautious of such scams by watching out for the following red flags:

1) Unexpected/ Unsolicited Contact from ‘Officials’: Scammers may accuse victims of serious crimes like money laundering, tax evasion, drug trafficking, etc. If you receive a call or message from someone claiming to be from the police, CBI, or any government agency, pause and think. Real law enforcement agencies do not operate investigations over phone calls or video chats, nor do they demand money to clear your name.

2) Fear and Urgency: Scammers use fear as their weapon. They create a sense of urgency, threatening immediate arrest or legal action if you don’t comply. They may even demand a video call to enhance the illusion, showing fake uniforms or documents.

3) Requests for Money or Sensitive Information: Scammers use threatening language, urgency, and even fake legal setups to appear genuine. Be wary if the caller asks for a payment to “clear your name” or resolve the issue. Phrases like “refundable security deposit” or “escrow account” are often used to make the scam sound legitimate. Remember, no genuine government official will ask you to transfer money. Remember demanding money is a key indicator of a scam.

Tips to stay safe:

Scammers thrive on fear and confusion, but staying calm and informed can be your best defense. Here’s how to be safe from fraud:

Pause and Verify: If you receive an unexpected call or message, don’t panic. Take a moment to verify the information. Real government officials will never demand money over the phone or through video calls. Use official websites or trusted sources to confirm the caller’s identity.

Check Credentials: Confirm the caller’s identity by consulting official sources or trusted contacts.

Report Suspicious Activity: An episode of Prime Minister Modi’s Mann Ki Baat reported that Indians alone have lost Rs 120.3 crore to this scam. Dial the national cybercrime helpline at 1930 or use the Department of Telecommunication’s portal (sancharsaathi.gov.in) to report fraud.

Following is the extract of a written statement of Minister of State for Home Affairs, Shri Bandi Sanjay Kumar in a written reply to a question in the Lok Sabha.

The ‘National Cyber Crime Reporting Portal’ (https://cybercrime.gov.in) has been launched, as a part of the I4C, to enable the public to report incidents about all types of cybercrimes, with a special focus on cybercrimes against women and children. Cybercrime incidents reported on this portal, their conversion into FIRs, and subsequent action thereon are handled by the State/UT Law Enforcement Agencies concerned as per the provisions of the law.

The ‘Citizen Financial Cyber Fraud Reporting and Management System’, under I4C, was launched in the year 2021 for immediate reporting of financial frauds and to stop siphoning off of funds by fraudsters. So far, a financial amount of more than Rs. 3431 Crore has been saved in more than 9.94 lakh complaints. A toll-free Helpline number ‘1930’ has been operationalized to get assistance in lodging online cyber complaints.

To spread awareness of cybercrime, the Central Government has taken steps which, inter-alia,  include;  dissemination of messages through SMS, I4C social media accounts i.e. X (formerly Twitter) (@CyberDost), Facebook(CyberDostI4C), Instagram (cyberDostI4C), Telegram(cyberdosti4c), Radio campaign, engaged MyGov for publicity in multiple mediums, organizing Cyber Safety and Security Awareness weeks in association with States/UTs, publishing of Handbook for Adolescents/Students, digital displays on railway stations and airports across, etc.