The Delhi Police has busted an interstate cyber fraud network and arrested four men in connection with separate cases involving an online investment scam and a so-called digital arrest fraud, officials said on Monday.
Police said the arrests were made following parallel investigations that revealed a complex web of mule bank accounts, layered transactions and coordinated operations spanning Delhi, Punjab and Gujarat. The cases highlight the increasingly organised nature of cybercrime networks operating across state borders.
₹31.45 lakh investment fraud via social media group
In the first case, a resident of Laxmi Nagar in east Delhi was allegedly duped of ₹31.45 lakh through a fake investment scheme run via a social media group. According to investigators, the victim was persuaded to install a fraudulent trading application and transfer money to six different bank accounts on the promise of unusually high returns.
“Soon after the money was transferred, the social media group became inactive and the trading app stopped functioning,” a police officer said. The complainant later realised that the entire operation was fraudulent and approached the police.
During the probe, police traced the flow of money through multiple mule accounts, a common tactic used by cybercriminals to conceal the final beneficiaries. Raids conducted in Ludhiana and Khanna in Punjab led to the arrest of two first-layer account holders, who had allegedly allowed their bank accounts to be used for routing the fraud proceeds.
Further analysis of bank records and digital evidence revealed the involvement of a second-layer operator. Arjun Singh (39), a resident of Surendranagar in Gujarat, was arrested on December 27 for operating a second-layer mule account. Police said Singh allegedly earned a commission of around ₹2 lakh for facilitating the transactions.
‘Digital arrest’ scam targeting US citizen
In a separate but equally serious case, a US citizen lodged a complaint alleging that she was digitally “arrested” by fraudsters impersonating officials from the US Embassy and the Delhi Police. According to the complaint, the woman received threatening calls and video communications, during which she was falsely told that she was under investigation for serious offences.
Under pressure and fearing legal consequences, the victim was allegedly coerced into transferring ₹30 lakh to accounts provided by the fraudsters.
Police said the money trail in this case led to a firm based in SAS Nagar (Mohali), Punjab. Following raids in Mohali and Chandigarh, the police arrested Varun, one of the firm’s partners, who was identified as the first-layer beneficiary of the fraud amount.
Layered transactions and organised networks
Aditya Gautam, Deputy Commissioner of Police (Crime), said the cases underline how cyber fraud networks operate in a structured and hierarchical manner.
“In both cases, the money was quickly moved through multiple bank accounts to avoid detection. These networks rely on first-layer and second-layer mule account holders, with each participant earning a commission,” Gautam said.
He added that such operations often involve individuals who knowingly or unknowingly provide bank accounts, SIM cards or company credentials in exchange for money, making investigations more complex.
Growing challenge for law enforcement
Police officials said the arrests reflect sustained efforts to dismantle interstate cybercrime syndicates, but acknowledged that the challenge is growing with the rapid adoption of digital payments and online investment platforms.
Investigators are now examining possible links between the two cases and other similar frauds reported in Delhi-NCR. “We are analysing digital footprints, call records and financial transactions to identify additional suspects and recover the remaining money,” an officer said.
Public advisory
Delhi Police reiterated its advisory to citizens to remain cautious of unsolicited investment offers, especially those circulated through social media groups or messaging platforms. People have also been warned against calls claiming to be from police, embassies or investigative agencies demanding money.
In case of suspected cyber fraud, victims have been advised to immediately report the matter on the 1930 cybercrime helpline or through the cybercrime.gov.in portal.
With cybercriminals increasingly operating across state boundaries and exploiting fear and greed, officials stressed that early reporting and public awareness remain critical in preventing financial losses and enabling timely action against organised digital crime networks.
