India is witnessing a rise in cases of ‘digital arrest’ and cyber fraud, where criminals impersonate police officers or officials from investigative agencies and coerce victims into transferring large sums of money.
The idea was discussed by a high-level inter-departmental committee formed in December under the leadership of a special secretary of the ministry. The committee includes representatives from key institutions such as the Reserve Bank of India (RBI), Central Bureau of Investigation (CBI), National Investigation Agency (NIA), Delhi Police, Ministry of Electronics and IT (MeitY), Department of Financial Services, Law Ministry, Consumer Affairs Ministry and the Indian Cyber Crime Coordination Centre (I4C).
The committee has reportedly conducted various discussions to investigate the increasing risk of online fraud, as stated in a report presented to the Supreme Court. It has even reached out to significant digital platforms such as Google, WhatsApp, Telegram, and Microsoft to discuss possible remedies.
A kill switch was proposed as a button or switch that would be incorporated into banking or UPI applications. When the switch is operated, it will immediately stop all financial transactions that are associated with the user’s respective accounts that comprise bank transfers, debit and credit card transactions, as well as UPI payments. The objective is to allow the users to have control instantly in case they think that there is fraud.
In a conversation with Zee Business, news anchor Deepak Dobhal, along with cybersecurity expert Amit Dubey and cybersecurity and law expert Dr Prashant Mali, discussed the issue in detail. In many digital arrest cases, fraudsters keep victims under pressure for hours, forcing them to move money across accounts. “A single button press that locks all transactions could prevent further financial damage during such situations,” he said.
The committee is also examining whether suspicious transactions can be identified early and whether systems can be built to prevent fraudsters from quickly moving money through multiple “money mule” accounts.
Experts raise concerns
Cybersecurity expert Amit Dubey welcomed the intent behind the proposal but expressed doubts about its effectiveness. “The kill switch can work only when the victim realises that fraud is happening. In most cases, people themselves transfer money under pressure, and by the time they realise the fraud, the damage is already done,” Dubey said.
He added that fraudsters constantly adapt to new systems. “Once criminals know about the kill switch, they may start tricking users into activating it through fake calls or links, asking for OTPs in the name of enabling protection,” he warned.
Dubey also pointed out that money is often split and transferred across hundreds or even thousands of accounts within minutes. “In such cases, the time window to act is extremely small,” he said.
Push for digital insurance
Cybersecurity and law expert Dr Prashant Mali said that while tools like a kill switch may help to some extent, India needs a stronger safety net. He stressed the importance of a government-backed digital fraud insurance system.
“Cyber fraud should be treated like a digital accident. Just as motor accident victims are compensated under third-party insurance, victims of cyber fraud should also receive protection,” Dr Mali said. He argued that relying only on private cyber insurance is not enough, as claims are often rejected if customers have shared OTPs under manipulation.
He also highlighted that the RBI’s Payment Vision 2025 report has suggested exploring a Digital Payment Protection Fund, where banks, insurers and regulators could jointly share the risk. “Such a pooled system would increase trust in the digital ecosystem and push institutions to strengthen security mechanisms,” he added.
Scale of the problem
According to RBI data, more than 23,800 fraud cases were reported in 2024–25, involving an amount of over Rs 34,000 crore. Experts say traditional banking safeguards are no longer sufficient as fraud methods become more sophisticated.
As Deepak Dobhal noted, “Digital fraud is no longer just a technical issue. It has become a serious social and financial crisis.”
While the kill switch proposal is still under discussion, experts agree that a combination of user-controlled tools, stronger bank accountability, better monitoring of money mule accounts and a clear regulatory framework will be essential to effectively tackle cyber fraud in India.
Doonited Affiliated: Syndicate News Hunt
This report has been published as part of an auto-generated syndicated wire feed. Except for the headline, the content has not been modified or edited by Doonited
