In a continued crackdown on cybercrime, Delhi Police’s Cyber Police Station in the South-West district has arrested 2 more alleged members linked to a fake loan app fraud network under Operation CyHawk 4.0.
The arrests are part of an ongoing investigation into online financial fraud, extortion and the use of mule bank accounts. Police said the accused were in contact with other members of the syndicate through virtual numbers linked to Pakistan and Bangladesh.
The case expanded after investigators traced mule bank accounts to a Bank of Baroda account in Kapashera, allegedly used to divert cheated money. Complaints connected to this account pointed to a fake loan app scam. Further investigation led to a Bank of India account in the name of Karan Kumar, which was linked to 2 similar complaints, resulting in the registration of FIR No. 54/2026.
During questioning, Karan Kumar allegedly told police that he had provided his bank account on commission to Shami Ahmad, who then passed it to another individual named Rahul for use in cyber fraud activities.
Police said analysis of seized mobile phones revealed WhatsApp chats related to the operation of the fake loan app, management of mule accounts and receipt of funds through UPI QR codes linked to these accounts. Investigators also found that the accused communicated with other members of the network using virtual numbers from Pakistan and Bangladesh.
According to the investigation, victims were lured into taking loans through fake apps. Once accessed, their mobile data was controlled by backend operators. The first instalment was deducted immediately, and victims were later threatened with morphed images being shared with them or their family members. Police said the stolen money was routed through mule accounts and later converted into cryptocurrency, specifically USDT, to hide the trail.
The two arrested individuals, both Rapido drivers from the same area, were identified as Karan Kumar and Shami Ahmad. Police said Karan lived with his parents and was introduced to the scheme through Shami, while Shami allegedly learned about arranging bank accounts via Rahul at his brother’s mobile phone shop.
Police recovered 2 mobile phones containing incriminating evidence related to the fraud. The investigation is ongoing to identify other members and determine whether the virtual numbers were operated by handlers abroad or within India.
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