Ex-banker loses ₹23 Cr to Digital Arrest Scam. Here’s how you can stay safe

A retired Delhi banker lost a jaw-dropping ₹22.92 crore in just six weeks after falling victim to a scam you’ve probably heard about but never thought could hit so hard; the ‘Digital Arrest’ scam. This isn’t some small phishing attempt; it’s one of the most chilling examples of how scammers weaponise fear and psychology to make victims willingly empty their own bank accounts.

How the scam played out

Naresh Malhotra, a 78-year-old former banker, first got a call from a woman posing as a telecom executive, accusing him of having accounts linked to illegal activity. Before he could process it, men pretending to be CBI officers joined in, claiming his name was connected to a ₹1,300 crore Pulwama terror funding case. They ordered him to remain on a video call, which is basically a fake “digital confinement,” while they guided him through over 20 transactions, draining nearly ₹23 crore of his savings.

It’s important to note that there’s no such thing as a “digital arrest” in Indian law. This was psychological warfare, designed to isolate the victim, flood him with fear, and bypass rational thinking.

A national cybercrime epidemic

This isn’t an isolated case. India is in the middle of a cybercrime crisis. In 2024 alone, Indians collectively lost ₹22,845.73 crore to online fraud which is a shocking 206% rise from the year before. Of that, the ‘Digital Arrest’ scam alone accounted for roughly ₹2,150 crore. The Indian Cyber Crime Coordination Centre (I4C) recorded over 92,000 digital arrest cases last year, alongside 36 lakh financial fraud complaints on NCRP and CFCFRMS. And these are just the reported ones, many victims stay silent out of fear or embarrassment.

Red flags to watch for

The pattern is almost always the same: an unsolicited call from someone claiming to be a cop or government officer, a manufactured sense of urgency (“we will arrest you unless you cooperate”), and the demand to stay on a call while transferring money to ‘clear your name’. No real authority will ever do this, and no legitimate investigation demands bank transfers over the phone.

Protecting our families

Senior citizens are often the prime targets because they trust authority figures and are less digitally savvy. That’s where we come in, the younger, digitally native generation. Our job is to educate, stay alert, and make sure our parents and grandparents know these tricks before a scammer calls them.

The Naresh Malhotra case is a painful reminder, but also a wake-up call. Awareness is our strongest defence. Share this story with your family, have those difficult conversations, and make sure fear never costs someone their life savings.