The Chandigarh cyber crime unit has arrested a second accused in connection with a ₹85 lakh cyber fraud case involving the now-common “digital arrest” scam, taking the total number of arrests in the case to two, officials said on Friday.
The accused, identified as Sibgathulla Baig, also known as Syed, aged 28, was arrested from Neelasandra in Bengaluru, following an inter-state operation carried out with the assistance of local law enforcement. Investigators said the arrest was made after a detailed technical probe that established the suspect’s role in receiving and routing part of the defrauded funds.
Certified Cyber Crime Investigator Course Launched by Centre for Police Technology
According to officials, the case pertains to a sophisticated cyber fraud in which the victim was allegedly coerced into transferring large sums of money after being threatened with arrest through digitally fabricated law-enforcement credentials. Such “digital arrest” scams have seen a sharp rise in recent months, with fraudsters impersonating officials and exploiting fear to extract payments.
Investigators said a forensic analysis of the money trail revealed that a portion of the ₹85 lakh fraud amount had been transferred into an Axis Bank account registered under the name of ‘SK Collection’, a firm owned by the accused. The mobile number linked to the bank account was also found to be registered in his name, strengthening the case against him.
Officials added that transaction logs, bank KYC documents and telecom records were examined to establish the accused’s identity and location. Based on this information, a Chandigarh-based team travelled to Bengaluru and conducted a targeted raid, which led to the arrest.
“The breakthrough came from tracking the financial trail rather than relying only on call records,” an official associated with the investigation said. “Once the beneficiary account was identified and linked to the accused through verified KYC documents, his location was established using technical inputs.”
The accused is believed to have played a key role in handling proceeds of crime, either by directly receiving funds or facilitating their movement through firm-linked accounts. Investigators are now probing whether additional shell entities or mule accounts were used to layer and divert the remaining amount.
Earlier, one accused had already been arrested in the case. Officials said further arrests are not being ruled out, as the investigation suggests the involvement of a wider network operating across multiple states.
Cyber crime officials said the modus operandi followed a familiar pattern. The victim was allegedly contacted through a phone call and informed that serious legal action was imminent. The caller then staged a “digital arrest” by simulating official procedures over video or audio calls, pressuring the victim into transferring money under the pretext of verification or settlement.
Authorities reiterated that no law-enforcement agency conducts arrests, investigations or financial verifications over phone or video calls, and urged citizens to remain cautious. “Any demand for money accompanied by threats of arrest should be treated as a red flag,” an official said.
The arrested accused has been produced before a local court and brought to Chandigarh on transit remand for further questioning. Officials said custodial interrogation will focus on identifying accomplices, tracing remaining funds, and mapping the digital infrastructure used in the fraud.
With cyber fraud cases witnessing a steady rise, investigators said financial tracking and inter-state coordination remain crucial in dismantling such networks. The case, they added, highlights how timely reporting and technical investigation can help recover trails even in complex digital crimes.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
