A ₹2.60-crore ‘digital arrest’ fraud in Goa has led the Enforcement Directorate (ED) to uncover a much larger cyber fraud and money-laundering network, with entities linked to banking transactions of more than ₹27,850 crore across India.
The ED has arrested two people in the case. Investigators found that around ₹2,904 crore was deposited in cash through accounts linked to the network, including ₹584.70 crore deposited through 61,448 Bulk Note Acceptance Machine transactions.
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₹27,850 Crore Banking Trail Exposed in Cyber Fraud Probe
The investigation began after a Goa resident was allegedly cheated of ₹2.60 crore in a ‘digital arrest’ scam. The victim’s money was quickly moved through dormant and newly opened bank accounts before being split across more than 400 beneficiary accounts.
The trail led investigators to an interconnected group of commodity, trading, travel and foreign exchange entities.
According to the ED, these entities collectively handled more than ₹27,850 crore through banking channels. A substantial portion was converted into cash and subsequently into foreign currency through licensed money changers.
The agency said the scale of cash deposits was inconsistent with normal business activity.
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330 Complaints, 163 FIRs Linked Across 20 States
The probe has also widened the geographical scope of the alleged fraud network. Accounts linked to the entities feature in 330 victim complaints and 163 First Information Reports (FIRs) registered across 20 States and Union Territories.
The complaints involve reported losses of ₹417.49 crore. In 101 cases, money from a single victim was allegedly routed through two or more entities belonging to the same network.
ED searches at more than 20 premises in Mumbai and Goa, including operations on July 17 and August 21, resulted in the seizure of about ₹3.25 crore in cash, along with digital devices, records and statutory registers.
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Shell Companies Allegedly Used to Move Fraud Money
Investigators also found that several companies allegedly operated as shell or dummy entities. People with modest incomes, including drivers and employees, were reportedly listed as directors, while others allegedly controlled the companies and their bank accounts.
The investigation is continuing. The case highlights how cyber fraud is increasingly intersecting with India’s banking and fintech ecosystem. For financial institutions, payment platforms and regulators, tracing the movement of stolen money after the initial digital fraud is becoming as important as stopping the fraud itself.
Samarjit Kaur is a journalist and communications professional covering technology & emerging digital trends. With a focus on clarity and context, she reports on developments shaping industries and governance. When not reporting, she chooses to plug-in and relax on her playlists and plan her next bucket-list trips!
