Former Army personnel duped of Rs 83 lakh through ‘Digital Arrest’ scam; Here’s what the scam is and how it is looting people of crores

This is notably, not just one case in which the accused has posed as an authority figure to dupe people for money. Trapping people using the internet and phones and then looting them for crores of the sum has become a new normal, termed 'Digital Arrest'.

On Wednesday, 24th October, a former army personnel was defrauded of Rs 83 lakh in an intricate scheme to ‘digitally arrest’ him. According to the police, Maj Gen Prabodh Chander Puri, 85, a resident of Sector 20, Panchkula, received a call from an unknown number on October 15th stating that his mobile phone was being used extensively and would be turned off within two hours. He was routed to customer care, who warned him that a mobile number registered in his name was being used to threaten people in Connaught Place, New Delhi.

Puri was assured he would be linked to the police department, and one claimed sub-inspector (SI) Mishra notified him of the phone’s usage and said he would connect him to the cyber cell. In an attempt to trap Puri in the fraud, another caller claimed SI Roshan informed Puri that his phone was used to launder money worth Rs 80 lakh and to allegedly threaten individuals.

He then received a video call from ‘SI’ Roshan, who had a Delhi Police cybercrime profile image. He instructed Puri not to hang up the phone and to remain in front of the camera until a police officer arrived. Another individual then contacted him and identified himself as Kashyap from the CBI. They inquired about his and his wife’s financial situation, and the call continued throughout the night. Puri then was compelled to provide his wife’s phone number as well. They threatened him not to tell his son, who is also in the army. They assured him that he would be digitally arrested and then released after a few procedures.

On October 16th, they sent him a picture of a man arrested for using his phone number. They forced him to withdraw all of his savings under his wife’s name. He was instructed to withdraw his fixed deposits and provide the receipts on call. They sent him an account number and instructed him to send over the funds, stating that they would refund the funds in six hours to his wife’s account. They also mentioned that they would suggest an award from the Centre for their assistance in solving the crime.

This is notably, not just one case in which the accused has posed as an authority figure to dupe people for money. Trapping people using the internet and phones and then looting them for crores of the sum has become a new normal, termed ‘Digital Arrest’.

In the given case, Puri filed a police complaint against the accused who posed as sub-inspector (SI) Mishra and SI Roshan to loot him of Rs 83 lakhs. The complaint has been filed under relevant sections, 316(2), 318(4), 336 (3), 338, and 340 of the IPC.

In today’s highly connected digital world, cyber threats are evolving at an alarming rate, fueled by advancements in AI and machine learning. This has also empowered fraudsters, increasing their chances of success in various scams. Despite growing awareness around the term ‘Digital Arrest’, linked to several fraudulent activities, the number of citizens falling victim to such schemes continues to rise. According to media reports, over 200 cases are reported each month in the National Capital Region (NCR) alone. A ‘Digital Arrest’ scam typically involves fraudsters posing as law enforcement officers on video calls, threatening fake arrests to extort money.

Ahmedabad police discovered a Taiwanese connection to ‘Digital Arrest’ scam

On 14th October, the Ahmedabad Cyber Crime Police announced it had detained four Taiwanese nationals out of 17 accused of ‘Digital Arrest’. While two of them were arrested from Delhi, the other two were arrested from Bengaluru.

The alleged racket involved a sophisticated scheme in which the accused impersonated officials from multiple government agencies, including the Telecom Regulatory Authority of India (TRAI), the Mumbai Crime Branch of the Maharashtra Police, the Central Bureau of Investigation (CBI), and the Reserve Bank of India (RBI). The scam also involved fraudulent claims linked to a Mumbai court, as well as the misuse of an Aadhaar card and bank account.

The gang ‘digitally arrested’ a senior citizen for 10 days, monitoring him through video calls and coerced him into depositing Rs 79.34 lakh as a ‘refundable’ processing fee to resolve a fabricated RBI issue. Police stated that the senior citizen had filed a complaint after individuals posing as TRAI, CBI, and cybercrime branch officials accused him of involvement in illegal transactions through his account.

Another such case reported from Ahmedabad on 24th October revealed that an elderly man was tricked into transferring Rs 1.26 crore in a digital arrest scam where the accused impersonated high-ranking officials, including the Chief Justice of India. 

The accused posed as Chief Justice, CBI official to loot through internet

On October 10th, a victim from Delhi received a video call from the accused, who posed as a police officer, a CBI official, and the Chief Justice. They falsely informed him that his bank account was connected to a money laundering case, citing a Rs 2 crore transaction. The fraudsters threatened the elderly man, warning that he could face a five-year prison sentence.

Using intimidation, they convinced him that if he submitted a written request, they could ask the Supreme Court to prioritize his case and prevent his arrest. They offered to conduct a ‘digital investigation’ via video call, during which they kept him under constant surveillance. During this so-called investigation, the accused pressured the victim to break his fixed deposits and transfer the funds for ‘verification,’ assuring him the money would be returned within 48 hours. To support their claims, they even produced a fake Supreme Court certificate.

After the victim transferred the cash, the accused cut all communication, leading him to recognize that he had been duped. After detecting the fraud, the man reported it to the Cyber Crime Cell, which initiated an actual inquiry leading to four arrests. 

Mobile phone users put under ‘digital arrest’ for 3-4 days before fraud

On 22nd October, a UP woman was duped in a similar ‘digital arrest’ scam for Rs 2.9 lakhs. The woman in the complaint said that she had received a call from an unknown number on 9th October and was asked to press 9 on the keypad after which her call was transferred. The lady was then informed that a man had been arrested for committing fraud of Rs 38 lakh using her phone number. The woman then was put under digital arrest and was forced to pay Rs 2.9 lakh for release.

On 19th October, a retired government official in Noida was duped of Rs 1.19 crore after being put under ‘digital arrest’ for four days by cyber criminals acting as Central Bureau of Investigation (CBI) personnel investigating a chit fund fraud of Rs 300 crore. 

Vijay Kumar Gautam, station house officer (SHO), cybercrime branch Noida, confirmed the crime and said that on September 11th, the victim got a call from an anonymous number. The caller described himself as a bank representative and informed him that Rs 1.9 lakh was due on his credit card issued in Mumbai. When the victim denied having anything to do with the credit card, the suspect moved his call to ‘Mumbai Police’ to register an online FIR.

The victim was later informed that his Aadhaar was used in a Rs 2.56 crore fraud involving a bank. He was told over the phone that the CBI was investigating this case, and the call was transferred again to someone impersonating a CBI investigator. “When I spoke to a CBI official, he said Rs 300 crore has been taken out from the bank, and more than 300 people have been cheated through a chit fund scam, and that my ID has been misused,” the FIR said.

The suspect assured the victim that if he cooperated with them, his name would be cleared and that everything had been looked into by the Supreme Court of India. During his digital arrest, he was allowed to carry out personal tasks.

“The victim then was asked to declare his financial status, and on the pretext of tracking a digital code to nab the real culprit, they made him transfer Rs 1.19 crore in three installments,” the head of the investigation stated. “He was placed under digital arrest from September 11th to 14th. When the victim did not obtain any clearance, he realized he had been tricked,” the officer explained.

Digital Arrest: What it is? How is it growing?

‘Digital arrest’ is a method used by cybercriminals to confine victims to their houses to defraud them. The perpetrators create fear in the minds of internet users by making audio or video calls, often impersonating law enforcement agents with AI-generated voices or visual technology.

In most situations, the fraud starts with an apparently innocent phone call from a claimed courier firm, cellphone provider, telecom department, or bank. These calls can be either live or automated, urging the recipient to enter a number for more information. Once connected, the victim chats with someone professing to be a support agent, and the misery begins.

The fraudsters often have some personal information about the victim, such as Aadhaar (or the last four digits), PAN, or bank details. Using this information, they convince the victim that their Aadhaar, PAN, mobile number, or bank account has been linked to alleged illegal activities. The victim is then connected to individuals impersonating law enforcement officers from agencies like the police, customs, ED, or CBI, who conduct a fake interrogation over video conferencing and issue a bogus arrest warrant via call or WhatsApp.

A ‘Digital Arrest’ involves the virtual confinement of the victim, including restricted access to bank accounts and digital platforms, prevention of online activities, live monitoring through video calls, and periodic check-ins, all of which continue until the scammers extort money. The scam typically escalates by taking the victim to a fake virtual court via Skype while they are under ‘digital arrest.’ The victim is then persuaded to transfer their bank balance to another account for ‘verification,’ with promises that the funds will be returned within 30 minutes. Fake documents, including letters and receipts on counterfeit letterheads of various authorities, are issued to further deceive the victim.

Advisory issued by I4C (Indian Cyber Crime Coordination Centre)

In light of the rising incidences, the Indian Cyber Crime Coordination Centre (I4C), which is linked with the Ministry of Home Affairs, issued advice asking civilians to stay calm. The Ministry also stated that no one had the authority to arrest anyone online and that people needed to stay alert. 

The advisory issued by the I4C read, “Don’t Panic, Stay Alert. CBI/Police/Custom/ED/Judges DO NOT arrest you on video call.”

The advice included logos for social media networks such as WhatsApp and Skype, stressing how scammers frequently used these services to make bogus calls. These platforms have indicated before that they are collaborating with government cybersecurity organizations to improve user protection from such threats.

Cases of sextortion emerging from Mewat, a hotbed of cybercrime

As reported several times by OpIndia, the Mewat region in Rajasthan and Haryana has become a hotbed of such cyber crimes. Several people residing in the area use technology to trap innocent internet users for money. In June this year, OpIndia reported about ‘Operation Anti-virus’ in Rajasthan during which police raided several locations in Mewat arresting several young individuals involved in looting people monetarily using the internet and fake calls.

As reported, thousands of SIM cards, mobile phones, swipe machines used for fund transfers, and cash counting machines were also been seized from the fraudsters. The Police arrested several individuals one of whom was identified as Abid. The accused had posed as a military man ‘Anil Kumar’ and made fake calls to loot people for money.

As per the police Mewat region in Rajasthan has become a hotbed for cyber crimes. More than 500 cases are reported daily from the region and more than 150 FIRs have been filed for cybercrime in 2024 alone. These accused persons deceive people through investment allurements, fake digital arrests, threats of disconnecting utilities, and sextortion. They call people, introduce some investment schemes, and ask people to make initial monetary deposits for future benefits. However, later these people are lured and forced to make further deposits. On refusal, they are threatened with ‘digital arrests’, scaring people to follow them.

In several cases filed of sextortions, a similar pattern has been observed by the police. As per the authorities, the accused persons make video calls to innocent people from unknown numbers and then play some sex videos. The call is deceptively recorded in which the targeted individuals are recorded watching pornography or sexual content, giving it an impression of involvement. The victims are then threatened and asked to deposit money if they have to avoid ‘police action’ or ’embarrassment’. The victims often get intimidated to deposit hefty amounts that are transferred and routed to many bank accounts before the final withdrawal.

The police say that these accused persons employ and train youngsters on salary and operate a huge nexus of call centers to lure and loot innocents monetarily. The ’employees’ are expected only to make fake calls from fake mobile phones and initiate conversations leading to massive loot by the experienced fraudsters. As per the reports, several villages in the Mewat region are engaged in such fraud.

It is believed that 18% of the total cyber crime cases happening in India are reported from the Mewat region. A huge nexus operates here in which some are responsible for arranging fake SIM cards, some for making calls, and others for actually executing the loot. The fake SIM cards are supposedly arranged from the states of West Bengal, Bihar, and Odisha.

A similar raid was reported in April 2024

In a major crackdown against cybercrime, the Nuh police in April this year arrested 42 cyber criminals from various parts of Nuh, Mewat in Haryana in two days concerning several cyber fraud cases registered nationwide. The arrested accused were identified as Deen Mohammad, Asif, Arif, Sarfaraz, Saqib, Ijaz, and Munajir among others. 

During the operation, a total of 50 cellphones, fake Aadhar cards, over 90 SIM cards procured with forged documents, cash, and several ATM cards were seized from the possession of the arrested accused. This was supposed to be the biggest crackdown on cyber criminals since April last year. Back then, the police had arrested 66 cyber criminals from 14 villages in a wide-scale operation that involved several police stations and dedicated teams of police personnel that included hundreds of cops.

Despite numerous news reports and awareness campaigns from various agencies, fraudulent ‘Digital Arrests’ and extortion schemes continue to persist. The best way to avoid falling victim to such scams is to stay alert, openly discuss any concerns and fears with friends and colleagues, and seek assistance from information security teams if in doubt.

The users need to always verify the identity of callers before participating in a conversation. Some more basic steps can be adopted to stay alert like being skeptical of sponsored ads on Facebook, Instagram, or Google that promote investment groups on WhatsApp or Telegram. People also should avoid providing sensitive financial information, such as bank details or login credentials, to unknown entities. They shall avoid clicking on strange links or also downloading unauthorized files.

As a preventive measure, the government recently launched the Chakshu portal under the Sanchar Sathi initiative by the Department of Telecom. Chakshu enables citizens to report suspected fraudulent communications intended to deceive telecom users through calls, SMS, or WhatsApp for cybercrime, financial fraud, impersonation, or other misuse. In the event of falling victim to cybercrime, complaints should be filed on the National Cybercrime Reporting Portal (NCRP), while financial cyber frauds can be reported by calling the National Cybercrime Helpline at 1930.