A large-scale online investment fraud operating across India and overseas has been uncovered by the Jammu and Kashmir Police, leading to the arrest of 9 individuals, including an MBBS doctor from Haryana. Officials said on 16 February 2026 that the scam defrauded investors of at least ₹209 crore, with the total amount suspected to exceed ₹400 crore. The case was registered at Ganderbal Police Station after Firdous Ahmad Mir from Safapora alleged identity theft and cheating by an online fraud network. A Special Investigation Team was formed under Ganderbal SSP Khalil Ahmad Poswal with subject experts to investigate the cybercrime operation.
Investigators found that the accused ran fake investment and trading websites promoted through social media and search engines, including paisavault.com. These platforms promised high returns through cryptocurrency and coin trading schemes. Once victims invested, funds were routed into bank accounts in Budgam, Srinagar, Ganderbal and Baramulla. The money was then transferred outside Jammu and Kashmir and abroad through multiple transaction layers to avoid detection. The group allegedly targeted vulnerable individuals, including Below Poverty Line account holders, offering ₹8000 to ₹10000 per month for access to their bank accounts and ATM cards. Some bank employees are suspected of supplying QR codes linked to mule accounts that were uploaded to the fake portals. Police have identified 835 bank accounts and verified 290 transactions worth ₹209 crore so far.
The alleged mastermind has been identified as Ekant Yogdutt, also known as “Dr Morphine”, a resident of Hisar in Haryana. Police said he learned cyber fraud methods while studying MBBS in the Philippines and maintained links with foreign nationals, including Chinese contacts. He was arrested at Indira Gandhi International Airport while returning from China. The other 8 accused were arrested from different parts of Kashmir and are believed to have acted as regional coordinators and account mobilisers.
Authorities are continuing to trace the full money trail and have started proceedings to attach properties bought with criminal proceeds. Police have warned citizens against online platforms promising unrealistic returns and advised people not to rent out bank accounts for small payments, as it can make them part of financial fraud. Victims have been urged to file complaints on the national cybercrime portal or call the helpline at 1930.
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