ED Raids 20 Locations Across 4 States in ₹2.6 Crore Digital Arrest Scam Crackdown

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ED executes a major operation targeting a ₹2.6 crore digital arrest fraud scheme, raiding 20 locations across multiple states.

Operation Overview

The Enforcement Directorate executed a significant enforcement action in connection with a ₹2.6 crore digital arrest scam, carrying out simultaneous raids at 20 locations spanning Goa, Mumbai, Delhi, and Kolkata. The operation resulted in the seizure of substantial cash reserves, foreign currency, gold holdings, documentation related to real estate assets, and materials associated with fictitious corporate entities. Investigators also placed restrictions on over 400 bank accounts suspected of facilitating illicit financial flows. The operation stems from a case registered under FIR No. 17/2025.

Seizures and Findings

During the raids, authorities recovered ₹80 lakh in physical currency, foreign exchange valued at approximately ₹1.24 crore, gold assets worth around ₹1.30 crore, and records detailing real estate properties estimated at ₹14 crore. Additional findings included approximately 100 counterfeit seals linked to shell companies, which were reportedly used to create and manage fake business structures to legitimize financial transactions.

Victim and Fraud Tactics

A senior citizen was targeted through repeated telephone calls and electronic communications from individuals impersonating representatives of the Telecom Regulatory Authority of India (TRAI) and the Central Bureau of Investigation (CBI). The perpetrators allegedly fabricated legal threats and a digital arrest scenario to pressure the victim into transferring ₹2.6 crore into multiple banking accounts.

Investigation and Expert Insights

The ED’s investigation suggests the scheme extends beyond a single fraud incident, indicating potential involvement in a broader financial network utilizing shell companies, distributed banking infrastructure, and cross-state associates to obscure illicit proceeds. Investigators are analyzing seized financial records, digital evidence, and property documentation to identify ultimate fund recipients, corporate controllers, and participants within the interstate criminal network. A forensic examination of the restricted bank accounts and their transaction histories is currently in progress.

Cybersecurity analysts affiliated with the Future Crime Research Foundation noted that digital arrest schemes employ psychological coercion tactics, with fraudsters mimicking official communications to instill fear and prompt financial transfers. Stolen funds are typically fragmented through multiple banking accounts and shell companies, complicating traceability efforts. Experts emphasize the necessity of advanced financial surveillance, prompt identification of suspicious transactions, and inter-agency collaboration to dismantle organized cybercrime operations.

Ongoing Efforts and Future Steps

The ED confirmed that the investigation remains active, with potential expansion anticipated based on analysis of seized digital and financial evidence. Authorities are pursuing additional individuals, corporate entities, and banking accounts connected to the network, alongside efforts to locate the final recipients of the alleged illicit funds.