According to Dhananjay Mahapatra, the Supreme Court stated on Tuesday that bank laxity that results in money being siphoned from people's accounts due to cyber fraud, including digital arrests, counts as a deficiency of service and emphasized that the government and regulators must create a system to guarantee that an alarm goes off when scammers attempt to con account holders.
A bench of CJI Surya Kant and Justice Joymalya Bagchi stated, "The staggering amount taken from people through digital arrest and cyber fraud is shocking," in reference to an earlier revelation by one of the investigative agencies that people have so far been duped to the tune of Rs 3,000 crore through digital arrests and cyber heists.
When scammers try to take advantage of these weaknesses, the financial system has to have a way to quickly identify them and sound an alarm throughout the nation.
"There are obviously some gaps because of which such scams are taking place," stated Attorney General R Venkataramani. We are working together to try to close these gaps.
He stated that an interdepartmental ministerial group is considering a number of measures to establish a strong system to stop cybercrimes such as digital arrest.
Senior counsel and amicus curiae N S Nappinai informed the court that although similar cybercrimes are common in the UK, over 90% of the money is recovered and given back to the victims.
She stated that the government and investigative bodies should concentrate on recovering the money that was embezzled and giving it back to the account holders who were defrauded.
SC Proponents of According to Vipin Nair, president of the Record Association, SIM boxes with 400 SIMs each are still offered over-the-counter, allowing con artists to trick customers using many numbers from the same device. He begged that this be halted right away.
"Facts brought on record so far reveal an alarming negligent and irresponsible approach of telecom service providers while issuing multiple SIM cards in one name," the bench stated on December 1, highlighting the widespread violation of standards in SIM card issuance.
We instruct the Department of Telecom (DoT) to submit a plan for the consideration of SC, which may eventually need to be put into place to stop SIM card abuse.
Nair stated that the authorities have not implemented any corrective or regulatory measures in spite of the directives. The CJI-led bench requested that the government deal with the problem right away and take all necessary steps to prevent SIM boxes from being sold over-the-counter.
According to Venkataramani, the CBI, which was tasked with looking into cases of digital arrests nationwide, has made considerable strides.
The AG was instructed by the bench to seal the investigative status report. The bench stated that the CBI might approach the court if it need further guidance to ensure a smooth inquiry into any matter.
