The Supreme Court has directed WhatsApp LLC and other concerned digital intermediaries to inform it about measures proposed to prevent digital arrest scams and related cybercrimes. The direction was issued while hearing the suo motu proceedings concerning victims of digital arrest frauds.
The Court also emphasised that financial institutions should compensate victims where cyber fraud occurs due to their failure to exercise due diligence.
The Bench of Chief Justice Surya Kant, Justice Joymalya Bagchi and Justice V. Mohana examined proposed safeguards submitted by the Union Government and suggestions made by the amicus curiae. It decided to first examine the RBI's proposed KYC Amendment Directions, 2026, expected to be notified by November 30 and implemented by December 31, 2026.
The Bench reiterated that financial institutions should compensate customers where their failure to exercise due diligence contributed to cyber fraud.
The Court observed:
"We reiterate and emphasize that The regulatory measures proposed by the Reserve Bank of India (RBI) must mandate and incorporate suitable provisions that require financial institutions to indemnify victims of digital arrest scams and other cyber frauds and pay suitable compensation not less than the amount lost by the customer, where it is established that the fraud or crime occurred due to the failure on the part of the financial institution to exercise due diligence in preventing or reporting the act/incident."
It also highlighted safeguards such as temporarily suspending suspicious transactions that differ from an account's usual transaction history and informing the nearest police station.
The Court directed WhatsApp and other intermediaries to submit their proposed preventive measures to both the Supreme Court and the Indian Cyber Crime Coordination Centre (I4C).
It ordered:
"WhatsApp LLC (A Meta Company) and other concerned intermediaries are also directed to apprise this Court of the measures they propose to undertake to prevent the digital arrest scams and related cybercrimes. They shall also simultaneously submit their proposals to the I4C."
The Court further directed State and Union Territory law enforcement agencies to submit details of registered FIRs and investigations.
The matter was listed for further consideration on November 23, 2026.
