What Changed on February 9, 2026?
HISTORIC RULING: The Supreme Court of India took suo motu cognisance of the digital arrest scam epidemic, expressing "serious alarm" over ₹54,000 crore lost to cyber frauds in just 15 months. The Court has ordered the Reserve Bank of India (RBI), Department of Telecommunications (DoT), and Ministry of Home Affairs to create a fast-track compensation mechanism for victims.
For the first time in India's legal history, digital fraud victims now have a constitutional path to recover their money — not just file complaints and hope.
Key Provisions of the Ruling:
✅ EFFECTIVE IMMEDIATELY
1. Instant Fund Blocking Protocol
Banks must freeze fraudulent accounts within 24 hours if reported via 1930 or cybercrime.gov.in. Earlier this took 7-15 days. RBI's January 2, 2026 SOP is now mandatory.
⏳ MARCH 2026
2. Victim Compensation Fund
RBI and DoT to establish a ₹1,000 crore emergency fund for victims who lost money despite following banking guidelines. Priority for senior citizens and amounts under ₹5 lakhs.
⏳ APRIL 2026
3. Bank Liability Framework
Banks are now liable for delays in blocking mule accounts or processing fraud alerts. If a bank fails to act within prescribed timelines, they must compensate the victim from their own funds.
⏳ JUNE 2026
4. Fast-Track Recovery Courts
Special cyber fraud tribunals to be set up in all metros for claims above ₹10 lakhs. Target: 90-day resolution instead of 2-3 years in regular courts.
Why This Matters: Before this ruling, less than 2% of digital fraud victims ever recovered their money. The Supreme Court has now mandated that "inability to catch the criminal cannot mean the victim remains uncompensated."
Do You Qualify for Compensation?
The Supreme Court framework is designed to help genuine victims while preventing misuse. Check if you meet the criteria:
Interactive Eligibility Check
Fraud occurred after January 1, 2024
The compensation framework covers incidents from 2024 onwards
You filed an FIR or online complaint within 24 hours of discovering the fraud
Reported via 1930, cybercrime.gov.in, or local police station
You did NOT voluntarily share your OTP/PIN after being warned
If you ignored bank SMS warnings like "Never share OTP", eligibility may be affected
The fraud amount is verifiable through bank statements
Clear transaction trail showing unauthorized debit
You were impersonated by someone claiming to be law enforcement, courier service, or government official
Digital arrest, fake CBI call, customs parcel scam, etc.
⚠️ Important Exception: If you willingly transferred money to someone you met on a dating app, investment Telegram group, or "part-time job" WhatsApp group, you may NOT qualify. The framework specifically covers impersonation frauds where scammers posed as authorities.
Documents You Need for Your Claim
Gather these before filing your compensation application. Missing documents can delay processing by 30-60 days.
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FIR Copy
Physical FIR from police station OR acknowledgment number from cybercrime.gov.in portal
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Bank Statement
Complete statement showing debited amount, with highlighted fraudulent transactions
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Call Recordings
Screenshots of scam calls, WhatsApp chats, or video call recordings (if available)
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Transaction Details
UPI ID, account number, IFSC code, and UTR numbers of all fraudulent transfers
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Timeline Document
Written chronology: when scam started, when you realized, when you reported
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Identity Proof
Aadhaar card + PAN card (mandatory for all compensation claims)
💡 Pro Tip: Create a dedicated Google Drive or physical folder titled "Digital Arrest Recovery - [Your Name]" and keep all documents organized. You'll need to submit them multiple times to different agencies.
Step-by-Step: How to File Your Compensation Claim
The Supreme Court has mandated a simplified process. Follow these exact steps:
File Police Complaint (If Not Done Already)
Visit your nearest police station OR file online at cybercrime.gov.in. Mention "Supreme Court Suo Motu Cognisance Feb 2026" in your complaint. Get acknowledgment number. This is non-negotiable.
Report to Your Bank Immediately
Call your bank's fraud helpline. Reference the new RBI SOP dated January 2, 2026. Ask them to freeze the receiving account under the "instant blocking protocol." Get ticket number.
Submit Formal Complaint on National Cybercrime Portal
Go to cybercrime.gov.in → "Report Other Cyber Crime" → Select "Digital Arrest/Impersonation Fraud" → Upload all documents → Mention "Compensation Claim under SC Feb 2026 Order"
Apply for Victim Compensation (New Portal - Coming March 2026)
RBI is launching a dedicated compensation portal by March 2026. You'll need your cybercrime complaint number, FIR number, and bank details. Portal URL will be announced on rbi.org.in
Follow Up Every 7 Days
Track your case status on cybercrime.gov.in. If no response within 14 days, escalate to I4C (Indian Cyber Crime Coordination Centre) via email: [email protected]
Consider Legal Action (If Amount > ₹10 Lakhs)
For high-value frauds, consult a cyber law advocate. The new fast-track tribunals (operational June 2026) can order banks to compensate you even if the scammer isn't caught.
How Long Will Recovery Take?
Based on the Supreme Court's directives and RBI's new Standard Operating Procedure, here are realistic timelines:
🚨 If You Report Within 24 Hours:
- Fund Blocking: 24 hours (if reported via 1930)
- Initial Recovery: 7-14 days (if fraudster's account is identified and has balance)
- Partial Compensation: 30-45 days (for amounts under ₹5 lakhs)
- Full Recovery: 60-90 days (depending on investigation)
⚠️ If You Report After 48+ Hours:
- Fund Blocking: Usually too late (money already withdrawn)
- Investigation: 60-90 days minimum
- Compensation: 90-180 days (via RBI Victim Fund)
- Legal Route: 6-12 months (fast-track tribunal)
⏰ The Golden Rule: Every hour matters. Scammers withdraw money from mule accounts within 4-6 hours. The faster you report, the higher your recovery chances. 92% of victims who reported within 2 hours got full or partial recovery in 2025 pilot programs.
Real Recovery Stories (2025-2026)
"Fake CBI officer called, made me transfer ₹4.8 lakhs via UPI. I reported on 1930 within 45 minutes. Police froze the receiving account in 3 hours. Got ₹4.2 lakhs back within 2 weeks. The new RBI protocol saved me."
— Rajesh M., 67, Retired Teacher
"Customs parcel scam. Lost ₹3.1 lakhs to 'clear my courier.' Reported after 6 hours, money was gone from mule account. But after SC ruling, I applied for compensation fund. Got ₹2.8 lakhs in 52 days."
— Priya S., 34, IT Professional
"IPS officer WhatsApp video call. They showed fake warrant. I transferred ₹12 lakhs via RTGS. Reported immediately, filed FIR same day. Bank froze their account within hours. Supreme Court's new framework forced my bank to compensate me fully because they delayed blocking by 8 hours."
— Anand K., 52, Business Owner
Frequently Asked Questions
Can I get my money back after digital arrest scam?
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Yes. The Supreme Court on February 9, 2026 ordered creation of a compensation framework for digital fraud victims. The RBI and DoT are developing a fast-track process for fund recovery. You can file a claim through the National Cybercrime Portal within 90 days of the fraud. Recovery rates are now 60-70% for victims who report within 24 hours.
Who qualifies for digital arrest compensation in 2026?
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You qualify if: (1) You lost money to digital arrest scam after Jan 1, 2024, (2) You filed an FIR within 24 hours OR reported on cybercrime.gov.in, (3) You did NOT voluntarily share your bank OTP or PIN after being warned by SMS, (4) The fraud amount is verifiable through bank statements, (5) You were impersonated by fake law enforcement/government officials.
How long does digital arrest compensation take in 2026?
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Under the new framework: Emergency blocking of funds (within 24 hours if reported fast), Initial assessment (7-14 days), Compensation processing (30-60 days for amounts under ₹5 lakhs), Full recovery attempts (90-180 days for larger amounts). Banks are now liable for delays in freezing fraudulent accounts.
What if the police refuse to file my FIR?
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Police cannot refuse cyber fraud FIRs anymore. Supreme Court's February 2026 order makes it mandatory. If they refuse: (1) File online at cybercrime.gov.in immediately, (2) Send written complaint via Speed Post to Police Commissioner, (3) Email complaint to I4C at
[email protected], (4) Tweet to @CyberDost with your details. The online complaint is legally equivalent to an FIR.
Can I claim compensation if I shared my OTP?
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It depends. If you shared OTP BEFORE receiving any bank warning SMS, you may still qualify. If you ignored multiple "NEVER SHARE OTP" warnings from your bank and still shared it, compensation may be reduced or denied. However, if scammers used deepfake technology or psychological coercion (threats of arrest, family harm), you can argue diminished capacity and still claim. Document the exact sequence of events.
What's the maximum compensation amount I can get?
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There is NO cap on compensation if you can prove the fraud and follow proper procedures. However, the RBI Victim Fund prioritizes claims under ₹5 lakhs for faster processing. For amounts above ₹10 lakhs, you may need to approach the fast-track cyber tribunals (operational June 2026). The largest recovery in 2025 was ₹37 lakhs (Pune, bank was held liable for delay).
My fraud happened in 2023. Am I still eligible?
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Unfortunately, the Supreme Court framework currently covers frauds from January 1, 2024 onwards. However, if you have an active police investigation or court case for a 2023 fraud, you can still file a petition citing the new ruling. Some legal experts believe the framework could be extended retroactively. Consult a cyber law advocate if your amount is significant.
Do I need a lawyer to claim compensation?
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For amounts under ₹5 lakhs: NO, the process is designed to be self-service via the cybercrime portal and upcoming RBI compensation portal. For amounts ₹5-10 lakhs: RECOMMENDED but not mandatory. For amounts above ₹10 lakhs or complex cases: YES, hire a cyber law advocate. Legal fees typically range from ₹15,000-₹50,000 depending on case complexity.
🔗 Official Sources & References
This guide is based on verified government orders and Supreme Court directives. Always verify information from official sources:
Legal Disclaimer: This guide is for informational purposes only and does not constitute legal advice. While we reference the Supreme Court's February 9, 2026 Suo Motu Cognisance order and RBI directives, individual cases vary. For specific legal counsel, consult a qualified cyber law advocate. DigitalArrestScam.com is an independent awareness platform and is not affiliated with any government agency.
Still Have Questions? We're Here to Help.
Every minute counts in digital fraud recovery. Don't navigate this alone.
Emergency Helpline: 1930 (National Cybercrime Helpline - Toll Free)
Report Online: cybercrime.gov.in | Track Status: Use your complaint number