Imagine being trapped in a virtual interrogation room for an entire day, with someone posing as the police, threatening you with arrest—except it’s all a lie. That’s exactly what happened to a Noida resident, who lost Rs 11 lakhs to scammers using a sinister tactic called "digital arrest".
Over a Skype call, the fraudsters told the woman that her Aadhaar number was linked to a money-laundering case and pressured her to empty her savings and take out a loan. Paralyzed by fear, she complied, only to realise later that she had fallen victim to a meticulously crafted con.
Across India, these invisible prisons are claiming more victims every day. The scammers' weapons aren't guns or handcuffs, but rather an intricate understanding of human psychology that allows them to hold their victims' minds hostage. Their tactics have become so effective that the Indian Cyber Crime Coordination Centre reports losses exceeding Rs 120 crore in just the first quarter of this year.
"It begins with a simple call," explained cyber psychologist Nirali Bhatia. "Someone claiming to be law enforcement tells you your identity is linked to a parcel containing drugs or fake passports. From that moment, panic sets in, and rational thinking begins to slip away,” Bhatia told Decode, explaining the scam’s modus operandi.
Bhatia added that victims are sometimes placed under “digital arrest,” meaning they are kept in continuous communication with the scammers until their demands are met.
“The psychological manipulation—through threats of immediate arrest or legal action—leaves victims panicked, driving them to make impulsive decisions, such as transferring money or sharing sensitive information, without questioning the scam’s legitimacy,” she explained.
The Growing Menace of Digital Arrest
In August, Vardhman Group head SP Oswal was duped of Rs 7 crore after he was put under ‘digital arrest’ for two consecutive days.
The fraudsters, wearing ID cards and civil dress, conducted a video call where someone impersonated Chief Justice DY Chandrachud presiding over a mock hearing. The victim then received a fabricated court order via WhatsApp, followed by demands to deposit Rs 7 crore across multiple accounts. The scammers also sent a counterfeit Enforcement Directorate arrest warrant bearing both ED's monogram and Mumbai Police stamps—a clear red flag as genuine ED warrants don't carry Mumbai Police stamps.
The ‘digital arrest’ menace seems to have finally become a concern for the government. In his latest Mann Ki Baat radio address, Prime Minister Narendra Modi urged citizens to remain vigilant against the psychological pressure tactics employed in digital arrests scams. “Stop, think, and act,” Modi advised, emphasising that panic leads to poor decisions.
He warned that no legitimate investigative agency will ever contact individuals through phone or video calls. “People have lost their hard-earned savings purely out of fear,” he added, underscoring the emotional and financial toll these scams inflict.
The sophistication of these operations is staggering. Operating from remote locations in Myanmar, Laos, and Cambodia, the scammers have turned psychological manipulation into an industrial-scale operation. Government data reveals that nearly half of all cyber fraud cases between January and April—amounting to a staggering Rs 1,776 crore—originated from these digital hunting grounds.
Experts speaking to Decode also highlighted that these scams exploit fear, coercion, and a lack of public awareness about cybercrime.
Venkata Satish Guttula, a cybersecurity consultant who has tracked these operations, noted that the targets are often professionals with everything to lose. "These aren't random attacks," he said. "The scammers understand that someone with a reputation to protect, a career they've built over decades, will do anything to avoid public scandal or legal trouble. Fear of losing everything becomes the chains that bind them."
This psychological pressure, he said, manipulates them into transferring money or sharing sensitive information, often without questioning the scam’s legitimacy.
The consultant further stressed that while individuals are often unprepared to handle such tactics, systemic issues—such as limited digital literacy and insufficient public education on scam detection—further exacerbate the problem.
Psychological Tactics Used by Scammers
Perhaps the most insidious is how the scammers exploit the inherent trust in authority. Bhatia emphasised the significant role of authority bias in scammers' tactics, wherein they pose as law enforcement officers, often wearing uniforms and calling from places resembling police stations or government offices, and demand money for a “compromise” and “closure of the case”.
“When the person on the screen appears to hold a position of authority, the victim instinctively feels compelled to comply,” she explained.
“We are generally law-abiding citizens, but most of us are unfamiliar with legal procedures unless we’ve experienced them firsthand,” she added. “As a result, when someone impersonates a police officer on a video call, we tend not to question their legitimacy. Fear of consequences clouds our judgment.”
“Fear drives these scams,” Guttula said. “Fraudsters create urgency by threatening arrest, legal action, or public exposure, leaving victims with little time to verify the situation. The fear of reputational damage adds even more pressure.”
Through a combination of targeted threats, social engineering, and emotional manipulation, even cautious individuals can be coerced into compliance before realising the deception, he added.
Apart from creating a sense of urgency or panic, the scammers also deploy “too good to be true” offers such as unexpected rewards, job offers, quick stock market gains, or lottery wins.
“Emotional manipulation is another tactic, with scammers, often posing as women, attempting to build intimacy to lower defenses. By exploiting emotions like fear, greed, or lust, they cloud judgment and trap victims,” Guttula highlighted.
Victims Succumb to Pressure
According to Bhatia, cybercrime exploits both technological and psychological vulnerabilities, leaving many victims unaware of the scam’s complexities. “When faced with a digital arrest scam, confusion and disbelief often set in, making compliance the natural response,” she said.
Explaining how this lack of awareness impacts victims, Bhatia elaborated, “Our brains are wired with a fight-or-flight response when dealing with physical threats like fire or violence. But since cybercrime is an unfamiliar danger, people often struggle to react appropriately. Despite having access to information, it isn’t always enough to trigger a logical response in the moment.”
Even when individuals try to resist, they often end up complying with scammers posing as government officials, Bhatia noted. This compliance is driven by the fear of severe personal and professional consequences. “Even well-educated individuals fall victim to these scams because fear blocks their ability to assess the situation rationally.”
Bhatia also pointed out the emotional toll such scams take on victims, both during and after the incident. She shared the case of a woman who was coerced into undressing on a webcam as part of a digital arrest scam. “Such traumatic experiences can result in long-term psychological effects, including paranoia and fear psychosis,” she said.
Guttula added that the fear of public humiliation or legal trouble puts victims into a reactive mode. “In these moments, the primary focus becomes escaping the perceived threat at any cost. This desperation makes victims more vulnerable to manipulation, as they often follow the scammer’s instructions without questioning the legitimacy of the threat,” he explained.
Victims, consumed by the need to avoid personal or professional fallout, frequently overlook red flags and skip basic verification steps. Guttula stressed that this emotional hijacking is what makes these scams so effective, even against otherwise careful individuals.
Public Awareness Lags Behind Fraud Tactics
Scammers have long exploited the fear of legal repercussions by posing as figures of authority, creating a dual victimisation scenario where both the target and the officer whose identity is misused suffer.
Earlier, Decode reported on Deputy Superintendent of Police Sunil Dutt Dubey from Gorakhpur, Uttar Pradesh, who became an unwitting victim of impersonation scams when fraudsters misused his photo to pose as a police officer on WhatsApp. Now, Dubey spends much of his time fielding calls from individuals who have been scammed or nearly fell victim to scams.
Unfortunately, even his efforts to raise awareness through educational videos are being co-opted by scammers, who edit these materials with poor-quality voice overs to further their schemes.
In order to combat these scams, experts stressed on the crucial need for awareness and vigilance, highlighting that endeavours to create public awareness have not kept pace with the evolving tactics employed by fraudsters.
“It’s crucial to stay cautious when receiving messages that provoke strong emotions,” Guttula advised. “If something feels urgent, threatening, too enticing, or suspiciously personal, it’s likely a scam.”
Bhatia recommended staying patient and calm when dealing with such situations. “Patience allows us to better assess the situation,” she said. “Many victims manage to escape mid-scam once their rationale kicks in. So, never trust immediately—always ask for verification.”