ED Busts ₹641 Crore Cyber Fraud Network, Two Chartered Accountants Arrested
Cyber Financial Fraud Operation Dismantled
A massive cyber financial fraud operation worth ₹641 crore has been dismantled by the Enforcement Directorate (ED), resulting in the arrest of two chartered accountants, Ashok Kumar Sharma and Bhaskar Yadav.
The Scheme
The accused allegedly orchestrated a digital investment scheme that deceived people across India with promises of unusually high returns through online earning opportunities.
The scheme primarily relied on a digital platform that promoted attractive investment opportunities, part-time job offers, QR code-based payment scams, and phishing techniques to lure victims.
Initially, small returns were given to build trust, after which the invested funds were frozen.
Money Laundering
The illicit funds were then routed through mule bank accounts managed via Telegram groups, which were used to fragment the transactions into smaller amounts and transfer them across a network of dummy and shell companies operating throughout India.
This method was designed to complicate the money trail and delay detection.
The illegally obtained funds were further transferred through Indian bank Visa and Mastercard debit cards to foreign fintech platforms.
A portion of the money was moved to a United Arab Emirates-based fintech service, allegedly as part of an attempt to obscure international transactions.
Investigation
According to officials, the scam was part of an organized cyber financial crime network that exploited technical vulnerabilities in financial systems.
Telegram channels were used to promote the scheme, connect with investors, and manage payment collections.
The ED stated that digital devices, financial records, and suspicious transaction data were seized from the accused, which are being analyzed to trace the full operational structure of the fraud network.
Warning to Investors
Investors have been advised to verify the legitimacy and regulatory registration of any online investment scheme before transferring funds.
The public has been warned to exercise caution when dealing with companies promising unusually high profits through digital investment plans.
Individuals should avoid suspicious links, Telegram channels, and unauthorized QR code payment requests.
Ongoing Investigation
The investigation is ongoing, and authorities have indicated that more arrests may follow as the probe advances.
International cooperation may be sought to dismantle the entire cyber fraud network.
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