Hyderabad, Oct 18 The cybercrime police arrested two people who were allegedly involved in a ‘digital arrest fraud’ case in which an elderly man was duped of Rs 29.17 lakh more than a year ago, officials said on Sunday.
The accused were involved in arranging mule bank accounts, withdrawing fraudulently obtained funds, and depositing the amounts into various bank accounts to conceal the money trail, a release from Hyderabad Police said.
The duo, residents of Hyderabad, also allegedly facilitated transactions involving digital currency in coordination with cyber fraudsters and earned commissions for their involvement, it said.
A case was registered in March 2025, based on a complaint by a 63-year-old retired employee, who received calls from unknown persons impersonating officials of the Delhi Police, CBI, and ED.
The fraudsters falsely alleged that he was involved in a money laundering case involving Rs 6.8 crore and threatened him with arrest.
To make their claims appear genuine, the fraudsters sent forged official documents and falsely stated that the complainant’s Aadhaar details and fingerprints had been misused in the alleged crime.
They obtained his personal and banking details and induced him and his daughter to transfer money under the pretext of verification, assuring them that the amount would be refunded, police said.
The fraudsters further threatened them with arrest and instructed them to maintain secrecy in the name of national security. Believing their claims, the complainant and his daughter transferred a total amount of Rs 29,17,668.
When the amount was not refunded, the complainant realised that he had been cheated and approached the police for necessary legal action.
Based on the technical evidence collected during the investigation, police on Saturday (October 17) apprehended two accused persons at Ameerpet here.
During interrogation, it was revealed that both of them were facing financial difficulties and had come into contact with the third accused (who is absconding), a resident of Bengaluru, through an instant messaging app.
The third accused allegedly devised a plan to route money obtained from victims of digital arrest fraud through multiple bank accounts using Cash Deposit Machines (CDMs) to conceal the money trail and make it difficult for investigating agencies to trace the transactions, police said.
As part of the plan, the two accused had shared bank account details with the third accused. Subsequently, he transferred the fraudulently obtained funds into the bank accounts and then the accused withdrew the money through cheques and deposited cash into various bank accounts using CDMs.
Later, the third accused allegedly used the deposited funds to purchase cryptocurrency and subsequently sold it online in exchange for Indian rupees. In return for facilitating the transactions, the two accused received commissions from the third accused, police said.
The investigation further revealed that approximately 16 cases have been registered across India in connection with the alleged fraudulent activities.
Further investigation is underway to trace and apprehend the absconding accused, examine the financial transactions, and identify the involvement of other persons connected with the fraud, the release added.
(PTI News)
