“Digital arrest” cyber fraud has come under fresh scrutiny after the Enforcement Directorate provisionally attached ₹1.76 crore in bank funds linked to the scam. The agency said the amount was parked in a mule account used to route proceeds of cybercrime and conceal the money trail.
The Jalandhar unit of the ED issued the attachment order on February 14 under the Prevention of Money Laundering Act. The investigation is based on an FIR registered at the Ludhiana cybercrime police station. According to the complaint, fraudsters posing as central agency officials extorted ₹7 crore from an industrialist. The accused allegedly staged a fake “digital arrest” through video calls, showing forged arrest warrants and a fabricated court process. The victim was kept under virtual surveillance for 2 days and was convinced to transfer funds to a so-called “secret supervision account” as part of a fake verification process.
The ED said the defrauded amount was layered through multiple transactions to hide its origin. Funds were first routed to mule bank accounts controlled by associates of the network, then transferred through shell companies and dummy entities to break the audit trail. Investigators found that part of the money was sent overseas using trade-based money-laundering methods, while the remaining funds were used to purchase virtual digital assets. The attached ₹1.76 crore is believed to be linked to the same laundering chain.
Sources said mule accounts were opened in the names of economically vulnerable individuals using fake job and loan offers. These accounts were later used to receive and move illicit funds, with deposits linked to several cyber fraud cases. Earlier searches led to the arrest of 2 accused, now in judicial custody. Officials recovered ATM cards, mobile phones and bank records showing transactions worth several crores. Cyber experts noted that “digital arrest” scams rely on fake identities, forged documents and live video monitoring to create fear. The ED said efforts are ongoing to trace foreign remittances, identify ultimate beneficiaries and uncover additional linked accounts.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
