Nithin Kamath, founder of Zerodha, has sounded an urgent warning about the rise of digital arrest scams in India. These scams, which prey on fear and urgency, have become frighteningly realistic, tricking even the most vigilant individuals into parting with their money or sensitive information.
“You get an unexpected call from a courier company,” Kamath explained in a X post. “The representative tells you the police have seized a parcel of yours containing drugs or illegal items. They even disclose personal details like your Aadhaar number. Soon, you’ll get calls from people claiming to be the police, CBI, or other authorities. Most of us would probably fall for this because it takes advantage of our fears.”
The scam typically begins with a suspicious call, SMS, or social media message. Fraudsters impersonate law enforcement officials, accusing victims of crimes such as money laundering or identity theft. Victims are then threatened with a so-called “digital arrest” unless they comply with the scammers’ demands.
“Digital arrest” is not a legal term under Indian law; it’s a fabrication by cybercriminals designed to create psychological pressure. Legitimate law enforcement officials do not demand payments, request personal information over the phone, or initiate legal proceedings through a call or video.
To help individuals avoid falling prey to these scams, watch out for these red flags:
- Suspicious communication: Scammers use unofficial phone numbers or email addresses while posing as officials.
- Pressure tactics: They create a sense of urgency and panic, threatening immediate action.
- Confidentiality demands: Victims are often told to remain silent under the guise of “national security.”
- Monetary demands: Legitimate officials will never ask for money transfers or sensitive details over the phone.
- If you suspect you’ve been targeted, stay calm, inform someone you trust, and file a complaint with the cyber cell or police. For those who have already been victimized, call 1930 immediately and providing evidence such as screenshots or call recordings to assist in investigations.
“These scams are so realistic that every day, hundreds of people lose lakhs of hard-earned money,” Kamath said.
