Patiala: Punjab Police have arrested two people in connection with a large-scale cyber fraud worth ₹8.1 crore, uncovering what investigators describe as a well-organized, cross-border syndicate with operational links extending to Dubai. The case came to light after a complaint connected to a retired senior police officer, prompting a deeper probe into a network that authorities say relied on digital anonymity, forged identities and layered financial channels.

Cross-Border Network Under Scrutiny

Cybercrime investigators tracing the money trail quickly determined that the alleged scam was not confined to India. According to police sources, technical and financial evidence points to offshore coordination, with a Dubai-based individual suspected to be a key handler. Indian authorities have initiated formal international cooperation processes to trace overseas suspects and financial flows.

Officials say the operation bears the hallmarks of an organized syndicate rather than an isolated fraud, with distinct roles assigned to different members and centralized direction from abroad. Further arrests are expected as transaction records and digital evidence continue to be analyzed.

Case Triggered by High-Profile Complaint

The investigation intensified after the family of a retired Inspector General of Police filed a complaint alleging that he had been defrauded through an online investment scheme. The officer is currently undergoing medical treatment following a serious self-inflicted injury. Police have confirmed that a written statement left by him detailed substantial financial losses and appealed for support for his family.

Authorities emphasized that the case is being handled with sensitivity, while also noting that the complaint helped expose what they now believe may be a multi-victim fraud operation.

Arrests and Evidence Reveal Organized Structure

Police have arrested two alleged operatives, including one individual from Thane, Maharashtra. Investigators say this suspect played an operational role by arranging SIM cards, bank accounts and documentation used to route and conceal illicit funds.

Search operations led to the seizure of more than 500 SIM cards—many intentionally damaged—along with a diary cataloging SIM usage. Additional recoveries included multiple mobile phones, identity documents, cheque books, stamps and biometric equipment. Officials said these materials indicate the systematic creation of mule bank accounts and fake identities, commonly used to launder proceeds from cyber fraud.

Financial Trail and Wider Victim Identification

With initial arrests completed, investigators are now focused on following the financial trail linked to the seized evidence. Police teams are analyzing transaction data, freezing suspicious accounts and working to identify additional victims who may have been targeted by the same network.

Officials cautioned that total losses could exceed the currently known amount as more complaints surface. The case, they said, underscores the growing sophistication of cyber-enabled financial crime and the need for coordinated domestic and international enforcement efforts.

Indore, one of India’s fastest-expanding cities, faced an unprecedented rise in cyber fraud during 2025, with financial losses crossing ₹100 crore, according to official police data. Authorities report that more than 8,000 residents were deceived by cybercriminals over the year, highlighting how rapidly digital crime is evolving alongside India’s growing online economy.

While improved coordination and faster technical intervention helped police recover roughly 17% of the stolen funds—an improvement compared with previous years—the sheer scale of cyber fraud remains a major concern for law enforcement and policymakers.

‘Digital Arrest’ Scams Dominate Cybercrime Landscape

Police data shows that so-called “digital arrest” scams emerged as the most common and damaging form of fraud in Indore this year. In these cases, criminals impersonate officials from agencies such as the CBI, Enforcement Directorate, or cybercrime units. Victims, often senior citizens, are falsely accused of serious offences including money laundering or drug trafficking.

Fraudsters exploit fear and urgency, pressuring targets to transfer large sums of money immediately under the pretext of cooperating with an investigation. Authorities say this tactic has proven alarmingly effective, particularly against individuals unfamiliar with digital processes or legal procedures.

Fear as a Weapon, Not Just Technology

Experts warn that these scams go beyond technical deception. The Future Crime Research Foundation (FCRF) describes digital arrest fraud as a form of psychological crime that deliberately manipulates panic, authority bias, and lack of legal awareness.

With the rapid adoption of digital payments and online banking, cybercrime has become increasingly organised. Investigators point to coordinated networks involving fake call centres, mule bank accounts, forged SIM cards, and inter-state operations that make detection and prosecution far more complex.

Expert Warning on Misuse of Law Enforcement Fear

Former IPS officer and cybercrime specialist Prof. Triveni Singh has cautioned that digital arrest scams thrive on public misunderstanding of how law enforcement actually works.

“No legitimate investigation agency arrests anyone through phone or video calls,” he said, stressing that fear-driven responses allow criminals to succeed. Singh emphasized that awareness alone is not enough—authorities must dismantle mule account networks, track money trails, and eliminate fake digital identities to disrupt organised cybercrime at its core.

Police Crackdown Shows Results, But Challenges Persist

Despite the growing threat, Indore police reported significant enforcement actions in 2025. Authorities registered 72 major cybercrime cases and arrested 112 suspects. Swift response mechanisms enabled refunds of approximately ₹17.24 crore to victims.

Additional enforcement highlights include:

• Over 2,000 fake social media profiles blocked
• Around 1,200 hacked accounts restored
• More than 25,000 suspicious bank accounts frozen through the National Cyber Crime Reporting Portal
• Dozens of mobile devices and numbers linked to fraud disabled
• Over 2,100 lost or stolen phones traced and returned

Strengthening Defenses for a Digital Future

Police officials say cybercrime units will be further upgraded with advanced tools, specialised training, and expanded public awareness campaigns. Experts stress that combating cyber fraud requires joint responsibility—from law enforcement, banks, technology companies, and citizens alike.

Indore’s experience serves as a cautionary tale for urban India: as digital adoption accelerates, cybersecurity must combine strong technology, informed citizens, and coordinated institutional action to stay ahead of increasingly sophisticated criminals

In a major blow to tax fraud operations, Uttar Pradesh’s Special Task Force (STF) has uncovered a large-scale Goods and Services Tax (GST) evasion racket involving at least 16 shell companies linked to a single bank account. Authorities estimate the scam resulted in tax losses of nearly ₹500 crore, raising serious concerns about systemic loopholes in financial and tax monitoring systems.

Single Account, Multiple Firms

Investigators revealed that the fraudulent network was operating primarily from Meerut, with all financial transactions routed through one account held at a Yes Bank branch in Delhi’s Janakpuri area. Despite being associated with 16 separate firms registered under different names, the account handled transactions worth approximately ₹268 crore between January and mid-October 2023.

The STF said the unusual pattern—multiple companies conducting business through one account—went undetected by both banking compliance mechanisms and GST oversight systems for months.

Fake Identities and Forged Documents

According to officials, the account was opened by one of the main accused, Dilshad, who allegedly coordinated the creation of shell companies using forged documentation. The group is accused of collecting identity proofs, PAN cards, and other personal documents from unsuspecting individuals.

To legitimize the fake firms, the accused allegedly used fabricated rent agreements, falsified electricity bills as address proof, and pre-activated SIM cards obtained through false identities. These firms existed largely on paper and were used to generate fake invoices and manipulate Input Tax Credit (ITC) claims.

Firms Used in the Scheme

Authorities have identified 16 entities so far, including trading and enterprise firms registered under different names but controlled by the same group. These companies were allegedly used to show fictitious business activity and circulate fake bills, enabling the diversion of funds and large-scale GST evasion.

Arrests and Ongoing Probe

On December 26, the STF arrested eight key individuals believed to be central to the operation. Officials say the accused systematically set up shell companies, generated fraudulent invoices, and siphoned off money by abusing GST mechanisms.

Investigators have already confirmed tax evasion exceeding ₹500 crore and say the figure could rise as more records are examined. Several additional bank accounts and firms are now under scrutiny.

More Arrests Likely

STF officials believe the racket involved a wider network, potentially including individuals who assisted with technical operations, banking processes, and procurement of fake identity documents. Authorities say more suspects have been identified and further arrests are expected.

Government agencies are now conducting a comprehensive review of bank transactions, GST filings, and billing data to trace the complete money trail and recover lost tax revenue. Departments are also examining why automated alerts failed to flag such high-value, suspicious transactions.

“The investigation is ongoing, and the entire network will be exposed,” an STF official said.

The case has intensified calls for stronger coordination between tax authorities and financial institutions to prevent similar large-scale frauds in the future.