coindesk.com
Living in this modern, connected world means many of our interactions are virtual. Instead of going to a store, we can order goods online. Don’t feel like eating at a restaurant? Order online and have food delivered directly to your home. As more activities move online, fraudsters have found new ways to exploit the distance and anonymity that digital interactions can create.
So-called “digital arrest” scams can thrive in this environment. Law enforcement does not arrest you through a video call. Legitimate law enforcement actions generally involve identifiable officials, established procedures, and opportunities to verify the authenticity of the interaction.
The recent breach of more than 153 million driver's license scans could potentially make these scams appear more credible. It's not yet clear how the stolen data may ultimately be used, but scammers are creative and could use the images to falsely claim that a victim's license was obtained from a law enforcement database as purported evidence that the victim is under arrest, making the scam appear more convincing.
Rich Graham is the director of the financial crimes practice at Moody's.
“Digital arrest” scams make authority difficult to verify
This scam can be particularly effective because it invokes the authority associated with law enforcement while reducing opportunities for independent verification. Rather than involving an in-person encounter, the interaction typically occurs virtually. Instead, a stranger may call, often from a fake number, and claim there is a problem with the victim’s account. Reports have linked many early cases of this scam to India, and similar schemes are beginning to receive attention here in the US.
For example, in the emerging US version, a scammer may claim to be from the fraud department of a bank. The victim may be told that their account has been flagged for a suspicious purchase, or that criminal activity has been tied to them. The next part of the scam may then come in the form of a video link, where the victim is prompted to meet with an “officer” or “agent,” who may be a real scammer in a uniform or a “deepfake”. The victim then may be told that the matter is confidential, instructed not to contact anyone, directed to check in repeatedly, and pressured to pay to make the charges disappear. Sometimes this event takes place over a single session, but other times victims are instructed to check in multiple times per day with the “law enforcement officer.”
Virtual calls can function as a form of psychological confinement. And, the video is used to create the appearance of legitimacy, while repeated contact can leave the victim feeling isolated and under pressure.
Reported international cases illustrate how damaging this type of scam can be. According to published reports, In Mumbai, a retired bank manager was reportedly kept under a so-called “digital arrest” for 54 days and lost approximately ₹40 lakh (roughly US$40,000) after scammers posed as law enforcement and investigative agencies. The specific agency names may change from country to country, but the mechanics are often consistent, including impersonated authority, victim isolation, repeated monitoring or check-ins, threats, and payment demands framed as compliance.