'Digital arrest' scams: ED reveals eight-member gang's modus operandi, I4C issues fresh advisory

‘Digital arrest’ scammers operated “mule” accounts to transfer the proceeds of crime, which were converted into cryptocurrency and transferred abroad.

The Enforcement Directorate on Saturday filed a fresh prosecution complaint in a cybercrime case, often known as “digital arrest”, news agency PTI reported. The agency's action comes a week after Prime Minister Narendra Modi warned citizens about such scams in his monthly 'Mann ki Baat' radio address.

The case involves various digital arrest scams committed to defraud money to the tune of ₹159 crore from victims across the country.(Getty Images/iStockphoto)

The anti-money laundering agency registered a case after studying multiple police FIRs and arrested eight persons named in its October 10 chargesheet. The accused are Charan Raj C, Kiran S K, Shahi Kumar M, Sachin M, Tamilarasan, Prakash R, Ajith R, and Aravindan. The accused also ran 24 related shell companies, which were used to launder money. All the accused are lodged in jail under judicial custody.

The case involves various digital arrest scams committed to defraud money to the tune of ₹159 crore from victims across the country. The fraudsters obtained hundreds of SIM cards, allegedly linked to shell companies' bank accounts, and also used these SIM cards to create fake WhatsApp accounts.

“The anonymity afforded by these untraceable SIMs allows scammers to defraud victims with a reduced risk of immediate detection. The scammers created 24 shell companies in Tamil Nadu, Karnataka and some other states to facilitate the acquisition and laundering of proceeds from cybercrimes,” ED said.

These shell companies were registered at the addresses of co-working spaces (where no actual business presence exists) and used fake bank statements in filings before the Registrar of Companies as proof of their commencement of business. The scammers also operated “mule” accounts to transfer the proceeds of crime, which were converted immediately into cryptocurrency and transferred abroad, the agency's probe has found.

The ED also seized "incriminating" evidence, such as cheque books and communication records, that indicates these individuals were part of a syndicate that laundered cybercrime proceeds from India.

One of the accused in the case played a key role in collaborating with Indian and overseas scammers and assisted in opening bank accounts for shell companies like Cyberforest Technologies Pvt. Ltd.

Fresh advisory

The Indian Cyber Crime Coordination Centre (I4C) issued a public advisory on Sunday asking people to be aware of “Digital Arrests.” The body also reminded people that “those making video calls are not police, CBI, Customs officials or judges”.

The agency, under the Home Ministry, asked people not to fall for these " tricks" and to report such crimes "immediately" by calling the National Cyber Crime Helpline 1930 or logging at the portal www.cybercrime.gov.in.

Digital arrest scams involve fraudsters posing as law enforcement officials calling vulnerable people and accusing them of serious financial crimes. The potential victims are mainly senior citizens, who are put on video calls for ‘interrogation’ and asked to transfer huge sums of money as penalties for such alleged crimes.

(With PTI inputs)