Digital Arrest Scam: ED Issues Fresh Advisory, Shares Gang’s Modus Operandi

The Enforcement Directorate (ED) filed a new prosecution complaint on Saturday related to a cybercrime case often referred to as “digital arrest,” according to reports. This action followed Prime Minister Narendra Modi’s recent caution to citizens about such scams during his monthly ‘Mann ki Baat’ radio program.

Aimed at defrauding victims

The ED initiated its case after analyzing multiple police FIRs and subsequently arrested eight individuals named in its October 10 chargesheet. The accused include Charan Raj C, Kiran S K, Shahi Kumar M, Sachin M, Tamilarasan, Prakash R, Ajith R, and Aravindan. These individuals reportedly managed 24 shell companies used to facilitate money laundering, with all accused currently in judicial custody.

Tis case centers on various digital arrest scams aimed at defrauding victims of approximately ₹159 crore nationwide. The suspects allegedly used hundreds of SIM cards, connected to the bank accounts of shell companies, to create fake WhatsApp accounts and carry out fraudulent activities.

How digital arrest scammers work

The ED noted that the anonymity provided by untraceable SIM cards enabled these scammers to defraud victims with minimal risk of immediate detection. To assist in the fraud, 24 shell companies were reportedly created across Tamil Nadu, Karnataka, and other states, with no genuine business operations. These entities were registered at co-working space addresses and relied on fabricated bank statements for their registration. The funds obtained through these scams were moved through “mule” accounts, then converted to cryptocurrency and transferred abroad, as revealed by the ED’s investigation.

Incriminating evidence, including cheque books and communication records, was reportedly seized, indicating that the suspects operated as part of a syndicate laundering cybercrime proceeds from India. One key individual in the case allegedly coordinated with both domestic and international scammers and facilitated the opening of bank accounts for shell companies like Cyberforest Technologies Pvt. Ltd.

ED issues fresh public advisory regarding digital arrests

On Sunday, the Indian Cyber Crime Coordination Centre (I4C) issued a public advisory urging caution regarding “Digital Arrests.” The advisory emphasized that individuals appearing in video calls claiming to be police, CBI, Customs officials, or judges are not legitimate law enforcement officers.

The Home Ministry’s agency advised the public against falling for such scams and encouraged immediate reporting through the National Cyber Crime Helpline (1930) or the portal www.cybercrime.gov.in.

Digital arrest scams typically involve fraudsters posing as law enforcement officials, targeting vulnerable individuals—particularly seniors—by accusing them of serious financial offenses. These potential victims are often subjected to video calls for ‘interrogation’ and pressured into transferring large sums of money as penalties for alleged offenses.

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