Delhi Man Loses Rs 23 Crore In 30 Days: What Is 'Digital Arrest' And How Can You Protect Yourself

A 78-year-old retired banker from Delhi, Naresh Malhotra, lost his entire life savings in a sophisticated cyber scam known as a “digital arrest.” 

The month-long fraud, which began on Aug. 1, robbed Malhotra of his savings of Rs 23 crore. The fraud began when Malhotra received a call from someone posing as a telecom executive, claiming his Aadhaar had been used to activate a number tied to terror funding. 

The call was then transferred to fraudsters impersonating Mumbai Police and Enforcement Directorate (ED) officials, who threatened him with fabricated charges of terrorism. Fearing arrest, Malhotra was coerced into transferring large sums of money. 

Despite the government’s repeated warnings, such crimes are only increasing. Digital financial frauds surged to Rs 4,245 crore across 2.4 million cases between April and January of 2024–25, according to Finance Ministry data presented in the Rajya Sabha in March. 

Digital arrest has become one of the most popular techniques for executing this scam, under which the scammers impersonate law enforcement or government officials. They often claim to be from agencies like the Central Bureau of Investigation (CBI), ED or local police and accuse victims of serious crimes.

The term “digital arrest” refers to the captivity of the victim digitally through platforms such as WhatsApp. Instead of physically detaining them, fraudsters isolate the person digitally and keep them on continuous video or phone calls and monitor their movements.

The extent of involvement of multiple individuals and the large sums of money extracted suggest that such cybercrime gangs are too sharp and sophisticated. They possess extensive knowledge about law enforcement procedures, psychological manipulation and digital surveillance techniques.

1. Understand that law enforcement agencies never call or video-chat individuals to accuse them of crimes. Any such communication is a scam.

2. If someone claims to be from the police, CBI, ED, or any authority and accuses you of a crime over a call, disconnect immediately.

3. Never share Aadhaar, bank details, or OTPs over the phone as no genuine authority will ask for these details.

4. Try to call your local police or national cybercrime helpline (1930)  to report the scam attempt.

5. Try to reach out to friends and family members to inform them about the incident.

6. If someone is claiming to be an authority and demanding money to secure your bail, it is likely a scam. Criminal proceedings and bails are not handled over phone calls or online chats.