India, Oct. 30 -- The Supreme Court on Thursday said any mechanism to curb digital arrest frauds must provide for the prosecution of bank officials found to have colluded with fraudsters, and must require financial institutions to compensate victims if a fraud resulted from the bank's failure.

Digital arrest frauds, in which callers posing as police or central agency officers hold victims on video calls and coerce them into transferring money, drew 21,928 complaints involving more than Rs.647 crore on the National Cybercrime Reporting Portal in the first eight months of this year, according to a status report filed in the court by the Indian Cybercrime Coordination Centre (I4C) and the Ministry of Home Affairs (MHA). The RBI's new compen...