India's Centre Proposes Measures to Combat Digital Arrest Frauds
Multi-pronged actions under consideration to check digital arrest frauds, Centre tells SC
The Indian Express
Image: The Indian Express
The Indian government is considering multiple measures to combat digital arrest frauds, including temporary debit holds on suspicious accounts and applying the Prevention of Money Laundering Act-2002. These proposals were discussed in a recent Supreme Court status report aimed at enhancing accountability among telecom service providers and improving fraud detection systems.
- 01The Centre is proposing temporary debit holds on suspicious accounts to combat digital fraud.
- 02The Prevention of Money Laundering Act-2002 may be applied to digital arrest frauds.
- 03The Inter-Departmental Committee has agreed on a framework to enhance fraud prevention.
- 04Telecom service providers are urged to expedite the implementation of new identification rules.
- 05AI-based monitoring systems are being enhanced to detect suspicious activities more effectively.
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In a bid to tackle rising digital arrest frauds, the Indian government has presented a series of proposals to the Supreme Court. These measures include implementing temporary debit holds on suspicious accounts and potentially applying the Prevention of Money Laundering Act-2002 to such offences. The Inter-Departmental Committee (IDC), formed following Supreme Court directions, has endorsed a Standard Operating Procedure (SOP) framework proposed by the Reserve Bank of India (RBI) to prevent money-mule activities and cyber fraud. The Centre's report, submitted by Attorney General R Venkataramani, highlighted the need for the Department of Telecommunications to expedite the notification of the Telecommunications (User Identification) Rules and related authorizations for implementing the Biometric Identity Verification System (BIVS). This system aims for national-level visibility of SIM issuance, with an operational target before December 2026. Additionally, the IDC discussed enhancing accountability among telecom service providers and improving AI-based fraud detection systems, including monitoring suspicious calling patterns and reducing the blocking timeline for suspicious SIM cards to 2-3 hours.
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These measures aim to protect consumers from digital fraud, potentially reducing financial losses and increasing accountability among service providers.
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