A Critical Study of Digital Arrest Scams and the Erosion of Online Trust: A Socio-Legal Analysis of Cybercrime Regulation in the AI Era

The rapid expansion of digital technologies, artificial intelligence, and online communication platforms has significantly transformed the nature of cybercrime, giving rise to a new form of technology-enabled fraud popularly known as “digital arrest scams.” These scams involve cybercriminals impersonating law enforcement agencies, judicial authorities, telecom regulators, or financial institutions through video calls, AI-generated voices, forged digital documents, and deepfake-assisted communication to create fear and compel victims to transfer money under the false pretext of legal action. The growing prevalence of such scams has emerged as a serious threat to online trust and digital governance in India. According to data reported through the National Cyber Crime Reporting Portal (NCRP), incidents of digital arrest scams increased from approximately 39,925 cases in 2022 to 1,23,672 cases in 2024, while reported financial losses escalated from nearly ₹91 crore to around ₹1,935 crore during the same period. Recent Ministry of Home Affairs and Indian Cyber Crime Coordination Centre (I4C) reports further indicate that Indians lost more than ₹22,845 crore to cyber fraud in 2024 and approximately ₹22,495 crore in 2025, with digital arrest scams accounting for a substantial share of psychological and financially motivated cybercrimes. Karnataka alone recorded losses exceeding ₹468 crore between 2023 and early 2026, demonstrating the alarming scale of victimisation despite increased awareness initiatives. The integration of artificial intelligence, voice cloning, synthetic identities, and deepfake technologies has further complicated investigation, attribution, and prosecution, exposing significant gaps within existing cybercrime regulatory frameworks. This study therefore undertakes a socio-legal analysis of digital arrest scams by examining their operational patterns, impact on public confidence, legal and regulatory inadequacies, and the emerging challenges posed by AI-driven deception. The research highlights the urgent need for robust cybercrime governance, technological safeguards, public awareness mechanisms, and adaptive legal reforms to restore trust within the digital ecosystem and ensure effective protection against evolving cyber threats.