“Digital Arrest Fraud”, a new scam has emerged in the market resulting in significant financial losses for individuals and businesses.
The seriousness of the scam can be understood from the fact that it became the talk point even for the Prime Minister Narendra Modi in his Mann Ki Baat address.
PM Modi played a recorded example of a scam call, and urged people to stay alert to such tactics. He emphasised that no genuine agency conducts inquiries over phone or video calls.
A day after PM’s speech, HDFC Bank, India’s largest private sector bank, has also advised customers to be cautious against digital arrest fraud with an aim to increase awareness about such fraud.
What is ‘Digital Arrest Fraud’?
In digital arrest scam, fraudsters impersonate law enforcement officials to deceive their victims.
This fraud results in significant financial losses for individuals and businesses, amounting to crores of rupees, under the guise of digital arrest.
Scamsters threaten victims with a digital arrest warrant for alleged tax evasion, regulatory violations or financial misconduct.
They ask for payment in the form of ‘settlement fee’ or ‘penalty’ to withdraw the digital arrest warrant.
Once the payment is made, the fraudsters disappear, leaving no trace of their identity. The victims are left with a monetary loss and sometimes an identity theft, due to the personal details shared with the fraudsters.
How to protect yourself from Digital Arrest Fraud?
Manish Agrawal, Senior Executive Vice President – Credit Intelligence and Control – HDFC Bank, said, “Fraudsters are directly targeting the emotions of the customers. When someone receives a call or message from fraudsters claiming to be law enforcement officers, always confirm their identity by independently contacting the government / law enforcement officials via proper channel.”
Safety tips shared by HDFC bank:
- Real government officials or law enforcement agency will never ask for payment or banking details
- Scammers often create a sense of emergency to make you act quickly without thinking
- Do not share sensitive information such as KYC details, bank details like – user ID password, card details, CVV, OTPs or PIN number, with anyone
- Always verify the officer’s identity by independently contacting the government official or law enforcement agency
- Look for errors in documents and avoid clicking on suspicious links.
All such fraudulent communication must be reported on Department of Telecommunication’s Chakshu Portal – www.sancharsaathi.gov.in immediately.
