Kill Switch Button Proposed to Combat Rising Digital Arrest Scams

• A high-level committee, formed by the Ministry of Home Affairs, has recommended a 'kill switch' feature to instantly block financial transactions during suspected digital fraud.
• The 'kill switch' would allow users to freeze all linked bank accounts with a single button press, preventing fraudsters from accessing funds.
• Mechanisms for recovering lost funds, including stopping rapid transfers to mule accounts, and an insurance system for banking fraud victims have also been proposed.
• An emergency button on banking and payment apps, potentially integrated with UPI, is being explored to implement the kill switch.
• Digital arrest scams involve fraudsters posing as law enforcement, using personal data and fear tactics to extort money, with 23,879 cases and Rs 34,771 crore lost in FY2024-25.

Why It Matters: A 'kill switch' and insurance are proposed to protect against surging digital arrest scams and financial fraud.