Gadag: Authorities in Karnataka have dismantled a cyber fraud network accused of exploiting students by opening bank accounts in their names and using them to channel illicit funds. Five individuals have been arrested in connection with the case, police confirmed.

The operation, uncovered in Gadag district, involved the seizure of 11 mobile phones and eight “bank kits,” including passbooks, ATM cards, SIM cards, and online banking credentials.

Students Targeted With Scholarship Promise

Investigators revealed that the accused allegedly targeted students by offering assistance in securing government scholarships. Under this pretext, they persuaded students—particularly those staying in hostels—to open bank accounts.

Once the accounts were created, the suspects reportedly took control of all associated banking materials, including login details and SIM cards, effectively gaining full access.

Small Deposits Used to Build Trust

To avoid suspicion, the accused allegedly deposited around ₹2,000 into each account during the setup phase. This initial transaction was used to create legitimacy and reassure victims before the accounts were misused.

Police believe these accounts were later used as “mule accounts” to route money obtained from cyber fraud operations conducted across multiple regions.

Arrests Made During Goa Operation

The investigation began earlier this month and quickly led authorities to track the suspects’ movements to Goa. Police intercepted the group while they were allegedly attempting to hand over collected bank kits to other members of the network.

The main accused—identified as Raja (23) and Vakdoth Vakeel (24)—are residents of the Vijayanagara district. During interrogation, they reportedly admitted to coordinating with other associates for commission-based transactions.

Additional Suspects and Seizures

Further arrests included individuals working and residing in Goa, such as a hotel employee and a DJ. Authorities also seized multiple bank kits linked to accounts opened in different districts, including Haveri and Gadag, primarily in branches of Bank of Maharashtra.

One key suspect remains absconding, and efforts are ongoing to track additional members of the network.

Larger Network Under Investigation

Officials suspect the operation may be part of a wider, multi-state cybercrime network. Forensic analysis of seized devices and bank transactions is underway to determine the scale of the fraud and identify links to other cases.

Cybersecurity experts note that the use of mule accounts has become a widespread tactic in financial fraud schemes. By using accounts opened in the names of unsuspecting individuals, criminals can obscure money trails and evade detection.

Rising Concern Over Student Exploitation

The case highlights a growing trend where students and vulnerable individuals are manipulated into unknowingly participating in financial crimes. Authorities have urged the public to remain cautious and avoid sharing banking details or opening accounts on behalf of others without full understanding.

Investigations are ongoing, and more arrests are expected as police continue to unravel the network.

New Delhi – India is intensifying its fight against unregulated cryptocurrency platforms with the launch of a Virtual Asset Lab under the Financial Intelligence Unit-India (FIU-India). The lab is tasked with detecting and monitoring offshore crypto exchanges operating without regulatory approval, amid rising concerns about cryptocurrency-related financial fraud, money laundering, and cross-border cybercrime targeting Indian users.

Monitoring Offshore Crypto Platforms

Authorities report that several offshore crypto platforms were facilitating deposits through UPI, debit, and credit cards while routing withdrawals via intermediaries and mule accounts to evade regulatory oversight. In response, FIU-India has issued compliance notices and taken action to shut down around 85 non-compliant URLs offering trading services to Indian users without registration under India’s anti-money laundering framework.

Enforcement Challenges

Offshore Virtual Asset Service Providers (oVASPs) often operate without any physical presence in India, making enforcement and cross-border oversight difficult. To address this, FIU-India is collaborating with banks, payment aggregators, and compliant domestic crypto exchanges to develop Red Flag Indicators, enabling rapid detection of suspicious crypto transactions and laundering networks.

Regulatory Push Amid Rising Crypto Fraud

The crackdown comes in the backdrop of increasing offshore trading, partly driven by India’s 2022 crypto taxation rules, which imposed a 30% tax on gains and a 1% TDS on crypto transactions. Authorities have also established a multi-agency task force to monitor emerging risks, share intelligence, and study new trends in digital asset crimes.

Cyber intelligence firms, such as Algoritha Security, are reportedly providing advanced blockchain forensics to trace, freeze, and recover cryptocurrencies fraudulently siphoned from victims. Additionally, the Future Crime Research Foundation, under Prof. Triveni Singh, is assisting law enforcement agencies in tracking complex crypto laundering chains and enhancing investigative capabilities in the digital asset ecosystem.

This move underscores India’s commitment to curbing illegal crypto trading, safeguarding investors, and ensuring compliance with domestic and international anti-money laundering laws.

Investigative agencies in West Bengal have intensified operations against an alleged illegal call-centre network following the announcement of the state’s Assembly election schedule. Simultaneous raids were conducted across multiple cities, including Siliguri, Howrah, Bidhannagar, and Durgapur, targeting nearly ten premises linked to the suspected network.

Allegations Against the Call-Centre Network

Authorities allege that the call centres duped individuals through deceptive phone calls, with personnel posing as representatives of institutions, financial organisations, or service providers. Victims were reportedly persuaded to share money, banking details, or other sensitive personal information.

During the raids, agencies searched premises connected to Surashree Kar, Samrat Ghosh, and Subhajit Chakraborty, among others. Recovered documents, computers, hard drives, and mobile devices are now under examination to map the operations, financial transactions, and participants in the network.

Investigation Focus and Scope

Officials are examining whether the call-centre operations were linked to other illegal financial activities. While there is no confirmed connection to political funding, the probe is being carried out alongside broader monitoring of financial transactions in the state, especially in light of the upcoming Assembly elections.

Investigators are scrutinising digital trails, bank records, and online payment transactions to determine the scale of operations and possible links outside West Bengal, including overseas connections.

Understanding Call-Centre Fraud Structures

Experts note that such networks often operate through layered structures, including:

• Callers – Contacting victims directly
• Technical personnel – Managing systems and databases
• Intermediaries – Handling fund transfers
• Coordinators – Overseeing overall operations

Identifying the role of each participant is critical for dismantling the network and preventing further fraud.

Election Context

The West Bengal Assembly elections are scheduled in two phases: April 23 and April 29, with vote counting on May 4, coinciding with results for Assam, Kerala, and Tamil Nadu. Authorities emphasise that monitoring fraudulent financial operations is a priority during the election period to prevent illegal money flows and scams.

The investigation is ongoing, with authorities continuing to analyse seized evidence and expand questioning as needed. Further updates are expected as the probe progresses.