Indians have lost around ₹52,976 crore to cyber-enabled frauds over the past six years, with nearly 8% of the losses linked to “digital arrest” scams, the National Human Rights Commission (NHRC) said on Tuesday.

The commission further warns that the frauds are causing not only financial devastation but also severe psychological trauma and violations of human rights.

According to a communique, an open house discussion on “Safeguarding Human Rights Against Digital Arrest Scams” was chaired by NHRC Chairperson Justice (retd) V. Ramasubramanian who said fraudsters were exploiting public fear of law enforcement agencies to extort money, while victims often found the recovery process more painful than the original loss.

NHRC Secretary General Bharat Lal said elderly citizens, including retired government officials, professionals, industrialists and bankers, were among the primary targets of such scams. Referring to information placed before the Supreme Court, he said more than 3,000 digital arrest frauds targeting senior citizens were reported last year alone.

“Cybercriminals are increasingly exploiting personal data obtained through data leaks and other sources to target victims, raising serious concerns about data privacy and protection. Evolving digital governance and financial systems enable them to commit fraud and move money faster uncaught,” said Mr Lal. He also urged strengthening safeguards to protect vulnerable groups, particularly senior citizens and ensuring effective support and remedies for victims of cyber fraud.

A disclosure that came from the Central Bureau of Investigation (CBI) which was also a participant in the discussion stated that many large-scale digital arrest scams originate from cyber scam compounds operating in Southeast Asia and are sustained through networks involving mule accounts, telecom infrastructure, social media intermediaries and even human trafficking.

The Telecom Regulatory Authority of India (TRAI) noted that a significant portion of digital arrest frauds had shifted to over-the-top (OTT) communication platforms, prompting calls for an appropriate regulatory framework for internet-based voice and video calling services.

Several experts warned that emerging technologies such as artificial intelligence, deepfakes and synthetic identities were likely to make such frauds more convincing and difficult to detect in the future.

Among the key recommendations emerging from the discussions was the proposal to recognise digital arrest scams as a distinct offence under existing laws to enable more effective investigation, prosecution and victim redressal. Experts also called for criminalising the renting of mule accounts, trafficking for forced cybercrime activities and the misuse of government logos in fraud operations.

Other suggestions included introducing transaction “circuit breakers” for high-value transfers, alerts during unusually long calls, trusted-person authentication for vulnerable customers, a dedicated victims’ fund, faster compensation mechanisms and a single government verification portal through which citizens could confirm the authenticity of law enforcement notices and communications.

Officials at the NHRC said they would examine the recommendations before finalising its proposals for the Union and State governments.