NEW DELHI: The Supreme Court on Thursday said banks must be held accountable for compensating victims of digital arrest scams, stressing that they should act as a “protective umbrella” for customers vulnerable to such fraud.A bench of CJI Surya Kant and justices Joymalya Bagchi and V Mohana questioned why unusually large withdrawals from a retired person’s bank account could not trigger timely intervention to prevent the loss.During the court’s suo motu hearing, Attorney General R Venkataramani said banks were getting better at identifying suspicious transactions and that preventive measures were being put in place.“We are proposing to direct that wherever such fraud takes place, bank will compensate victim and suffer prosecution. It has to be done,” the CJI said.“We feel frustrated that all educated people are getting duped. What will you pass on to next generation if you get digitally arrested at this age? People can go to the court’s website to find if there’s an order,” the CJI added.
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The apex court also expressed shock at how educated people were getting “arrested on mobile” despite public awareness campaigns, news reports and court orders.“What is wrong with these victims? How are these victims being trapped like this? They can’t understand this basic thing? What’s fear of arrest on mobile?” the CJI said.“Hit the mobile on wall and arrest goes. Something is wrong with people. God knows what is there. What kind of person you are in democratic country if you think you are getting arrested on mobile,” Chief Justice of India Surya Kant remarked orally.Observing that banks must be held accountable for indemnifying victims of digital fraud, the bench said victims of offences such as digital arrest scams should receive compensation of at least the amount lost if the fraud was found to have resulted from a failure of due diligence by the financial institution.