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India’s Cyber Fraud Wave: ‘Digital Arrest’ Scams and Fake Apps Drain Crores as Police Track Money Trails

Investigators describe layered networks that funnel stolen money through mule accounts, gift cards, online gold or cryptocurrency, complicating recovery.

Overview

  • An 81-year-old Hyderabad businessman reported losing Rs 7.12 crore after impostors kept him under a so-called digital arrest, even seeking an additional Rs 1.2 crore before he approached the Telangana Cyber Security Bureau.
  • Ahmedabad police said an 82-year-old victim transferred Rs 7.12 crore during weeks of coercion; 12 suspects have been arrested as probes trace conversions to USDT via hundreds of mule accounts, with only about Rs 10 lakh recovered.
  • Chandigarh’s cyber unit arrested a 23-year-old from Gurugram in a fake traffic challan APK case, finding the proceeds were moved through gift cards and redeemed as online gold, and seized a phone and SIM linked to the fraud.
  • Mumbai’s North Cyber Police arrested a 25-year-old from Surat for a malicious RTO e‑challan APK that let scammers siphon over Rs 21 lakh from a businessman and his wife, with investigators pursuing additional layers of the racket.
  • Police reported fresh complaints of seniors and investors duped through WhatsApp groups, fake trading apps and task-based schemes, including an 85-year-old Delhi woman who lost Rs 1.34 crore, and urged citizens to avoid unknown links or APKs and report to 1930.