India Eyes 'Kill Switch' and Fraud Insurance to Combat Digital Scams

• A Ministry of Home Affairs (MHA) committee is exploring a "kill switch" feature for banking apps, allowing users to instantly freeze transactions upon suspecting digital fraud.
• The inter-departmental committee, formed in December, is also considering fraud insurance to cover losses from escalating digital scams, including "digital arrest" fraud.
• The proposed kill switch would be a single-button option in UPI or bank applications to halt all outgoing financial activity.
• The committee is investigating early flagging of fraudulent transactions to prevent money dispersal through mule accounts.
• Digital arrest scams, where fraudsters impersonate law enforcement, have led to estimated losses of nearly Rs 3,000 crore, prompting Supreme Court intervention.

Why It Matters: India is developing a 'kill switch' and fraud insurance to protect against rising digital scams.