In one of India’s largest cyber fraud cases, a 72-year-old Mumbai businessman fell victim to a sophisticated “digital arrest” scam, losing Rs 58.13 crore over a 40-day period. Fraudsters, impersonating officials from agencies like the Enforcement Directorate (ED), Central Bureau of Investigation (CBI), and Telecom Regulatory Authority of India (TRAI), trapped the victim and his wife in a web of threats and manipulation. The Maharashtra Cyber Police investigation has since exposed an international syndicate with ties to China, Hong Kong, and Indonesia, part of a broader network responsible for nearly Rs 2,000 crore in online frauds across India over the past year.
The Victim and Targeting
The victim, a partner in a pharmaceutical company, had recently liquidated shares for Rs 50 crore earlier in 2025, making him a prime target for scammers who track high-value transactions. On August 19, 2025, he received a video call from fraudsters posing as TRAI officials, who claimed his mobile number was linked to illegal money laundering activities tied to his recent windfall. Believing the funds in his account were “tainted,” the victim was coerced into cooperating. The couple, isolated at home, did not inform family (including children abroad), neighbors, or banks during the ordeal, fearing legal repercussions.
How the Scam Unfolded
The fraud spanned from August 19 to September 29, 2025, employing classic “digital arrest” tactics:
Initial Contact and Isolation: Fraudsters kept the victim on continuous video calls, monitoring him via his phone camera and forbidding him from leaving home or contacting anyone, creating a virtual “arrest” environment.
Impersonation and Threats: Posing as police, ED, and CBI officers, they used fake documents, staged video feeds of “police stations” and “courts,” and issued fabricated arrest warrants to build credibility.
Forced Transactions: Over 27 days, the victim was compelled to visit four different banks where he held accounts, transferring funds via RTGS to over 6,500 “mule” accounts across 13 layers. These accounts, often opened under shell companies or fake identities, were controlled by local accomplices paid commissions. To evade detection, scammers instructed withdrawals via cheques and redeposits into unlinked accounts within the same bank.
Escalation and End: The duo transferred Rs 58.13 crore in total, promised “verification” and return of funds. The scam peaked on September 30 when fraudsters demanded a final Rs 2 crore; the couple then confided in a friend, filed a complaint on October 11, and approached police.
The operation relied on commission-based Indian bank accounts as collection points, with funds quickly laundered through cryptocurrency conversions and routed abroad.
Investigation and Arrests
Acting on the complaint, the Maharashtra Cyber Police formed nine teams to trace the money trail. They blocked Rs 3.5 crore in assets and froze numerous mule accounts. As of November 2025:
- Seven individuals from Mumbai and surrounding areas—mule account providers—were arrested initially on October 16-17.
- A total of 26 arrests have been made, including those handling fake video calls from Rajasthan and Gujarat.
- A magistrate denied bail to six accused on November 10, citing the scam’s scale.
The probe revealed the gang’s year-long activity, with IP addresses and crypto exchanges linked to foreign entities.
International Connections and Money Trail
The investigation uncovered a transnational nexus:
- Stolen funds were converted to cryptocurrency via Indian digital wallets and funneled to wallets in Hong Kong, China, and Indonesia.
- Crypto was rapidly shuffled across multiple wallets to obscure tracking, enabling swift exfiltration.
- Requests for data have been sent to foreign agencies, highlighting the syndicate’s use of global platforms for cybercrimes targeting Indians.
This case underscores the rising threat of digital arrest scams, where virtual intimidation leads to real financial devastation, amplified by cryptocurrency’s anonymity.
Current Status and Implications
The probe continues, with police dismantling the network’s layers. No recoveries beyond the blocked Rs 3.5 crore have been reported yet. Authorities urge vigilance against unsolicited calls from “officials” demanding funds or digital confinement, emphasizing that genuine agencies never request money transfers or prolonged video surveillance. This scam’s exposure could aid in broader crackdowns on international cyber fraud rings.