₹58-Crore “Digital Arrest” Scam Exposed: A 72-Year-Old Trader Was Tricked Using 6,500 Indian Bank Accounts

The Maharashtra Cyber Police have discovered a vast “digital arrest” scam that duped a 72-year-old share trader of an astounding ₹58 crore, in what investigators are describing as one of the biggest and most sophisticated cyber frauds in India.

The thieves circulated, layered, and concealed the stolen funds using a nationwide network of 6,500 bank accounts, according to officials. This scale has never been seen in a single cybercrime case.

Seven suspects, including account holders (sometimes referred to as mule operators) and their handlers, have been taken into custody thus far, while multiple others are being investigated.

A Maze of 6,500 Accounts to Evade Detection

The accused developed a complex system to guarantee that money moved instantaneously between accounts, making it nearly impossible for law enforcement to freeze or locate them, according to the Maharashtra Cyber Police’s Financial Crimes Unit.

According to a senior officer who was part of the investigation:

“The scammers had charted a complex web of bank accounts in several different states. Some functioned as withdrawal accounts, from which funds were taken out with checks in order to obstruct the audit trail. Others served as pass-through accounts, sending money to unaffiliated banks via digital channels or ATMs.”

The money has frequently moved across five or seven accounts in a matter of minutes by the time a suspicious transaction is detected.  The offenders made sure CCTV cameras could only record one individual per transaction, the officer continued, making identification even more difficult.

The Trap: A “Digital Arrest” is staged by fictitious ED and CBI officers

On August 19, persons acting as senior officials from the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) called the 72-year-old dealer, starting the fraud.

The callers accused him of money laundering after claiming to have discovered illicit transactions connected to his bank account.  They informed him that he was being placed under “digital arrest,” a tactic used to intimidate a victim by imitating the authority of law enforcement.

To make the hoax more plausible, the fraudsters supplied the trader counterfeit government documents, complete with official insignia and digital seals.  They promised to repay the money after it was cleared and told him to move it to “safe verification accounts” for audit.

The victim and his spouse moved ₹58.13 crore using RTGS to accounts that the scammers had provided, which were dispersed among 18 banks in Maharashtra, Gujarat, Delhi, and other states, between August 8 and October 19.

How the Scam Was Discovered?

When the victim’s bank reported huge, questionable transfers to the Maharashtra Cyber Police, the fraud was discovered.  Investigators started tracking the money flow and promptly froze a number of accounts.

Three mule account holders who had consented to the movement of funds in exchange for commission were apprehended by police.  These people were:

• Abdul Khulli (47), resident of Malad, Mumbai
• Arjun Kadwasra (55), resident of Chira Bazaar
• Jetharam (35), resident of Mumbai Central

Following the three arrests on Wednesday, four more were made on Thursday.  The defendants have been charged under provisions of the Information Technology Act, the Prevention of Money Laundering Act (PMLA), and the Indian Penal Code.

Numerous more account holders from various states may have unintentionally fallen for the fraud, according to investigators.

International Links: Calls from Laos and Cambodia

According to officials, the victim’s calls originated in Cambodia and Laos, two nations that have lately become focal points for cybercrime attacks against Indians.

In these nations, call centers frequently operate “digital arrest” schemes, with skilled operators posing as Indian law enforcement officers.  To make their schemes seem authentic, they employ spoof caller IDs, AI-generated papers, and voice modification software.

According to a police source:

“These syndicates mix money laundering, impersonation, and intimidation.  To get people to obey right away, they take advantage of their fear of government action.”

A portion of the stolen funds may have been transformed into cryptocurrency and transferred through foreign exchanges before being reintroduced into India through mule accounts, according to investigators.

Maharashtra Cyber Police Seeks Interpol Assistance

To find the masterminds working from outside, the Maharashtra Cyber Police said it is collaborating with Interpol and other international law enforcement organizations. In order to improve detection systems for mule transactions and multi-account layering, the agency has also contacted the Reserve Bank of India (RBI) and significant banks.

A top official declared, “Our objective is to dismantle the global network that supports the local operatives in addition to apprehending them.”

In order to track down digital wallets connected to the pilfered money, authorities have also started collaborating with bitcoin exchanges.

About The Author:

Yogesh Naager is a content marketer who specializes in the cybersecurity and B2B space.  Besides writing for the News4Hackers blogs, he also writes for brands including Craw Security, Bytecode Security, and NASSCOM.

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