New Delhi, April 1 -- If you are the kind who reads the inside pages of newspapers, you may have noticed a surge in fraudulent digital arrests, WhatsApp money transfer scams, online Ponzi schemes, deepfake videos of famous people recommending some fraudulent investment and investors losing money on financial derivatives.

The digital system as it has evolved is at the heart of such things. Until a few years ago, selling an idea or an investment scheme required gathering people in a room. Also, threats had to be made face-to-face or by a phone call; a 'digital arrest' was inconceivable. And frauds lacked scale.

The digital economy has broken this dynamic, allowing scamsters to reach more people quickly and also reducing the gap between so...