Hyderabad | January 11, 2026: The cybercrime wing of the Malkajgiri police has arrested two accused in separate cases of online fraud during the first week of January, exposing what officials described as a pan-India cybercrime network. As part of the crackdown, more than ₹56 lakh has been refunded to victims through court-directed procedures, a development authorities termed a significant achievement.
The arrests were made between January 3 and January 9 by the Cyber Crime Police Station (CCPS), Malkajgiri. Investigations revealed that the cases involved so-called ‘digital arrest’ fraud and investment-related cyber scams. Police officials said the cases underline how online frauds are becoming increasingly organised, technologically advanced and psychologically manipulative, with mule accounts playing a central role in the movement of illicit funds.
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The ‘Digital Arrest’ Scam and the Role of Mule Accounts
In one case, Kola Manjula, a resident of Secunderabad, was arrested for acting as a mule account holder in a ‘digital arrest’ fraud. The scam targeted an elderly resident of Malkajgiri, who was allegedly cheated of ₹90 lakh. The fraudsters contacted the victim while impersonating officials from the Telecom Regulatory Authority of India (TRAI) and the Bengaluru Crime Branch.
According to investigators, the accused created a climate of fear by accusing the victim of involvement in serious illegal activities. Multiple video calls were staged, during which fake documents were displayed and even a mock Supreme Court hearing was enacted. Under the pretext of “legal verification” and to avoid immediate arrest, the victim was coerced into transferring large sums of money to several bank accounts.
Tracking the Network Behind the Fraud
Police said Manjula arranged and operated the bank accounts used by the fraudsters to receive and route the defrauded money. Such mule accounts are typically rented or sold, allowing cybercriminals to move funds quickly while evading detection. Further investigation revealed that Manjula is linked to at least five other cybercrime cases registered in Telangana, Andhra Pradesh and Uttarakhand, pointing to her involvement in a wider network.
Court-Directed Refunds Bring Partial Relief
Although the fraudsters themselves did not return any money, the cybercrime police managed to freeze accounts in time and, through court proceedings, secured a refund of ₹41 lakh to the elderly victim. This amount constituted a major portion of the total recovery achieved during the week.
The second arrest was made in connection with an investment fraud case, which is still under investigation. Police said that, taken together, the two cases resulted in court-ordered refunds totalling ₹56,27,776, processed by CCPS Malkajgiri during the first week of January. Officials said the recovery has brought major relief to victims, many of whom had lost their life savings or retirement funds.
Warnings as Digital Arrest and Investment Scams Grow
Cybercrime experts tracking emerging fraud patterns, including the Future Crime Research Foundation, have warned that cases involving ‘digital arrest’ and investment scams are likely to increase further in the coming years. According to the foundation, fraudsters increasingly exploit fear, urgency and the illusion of authority to mentally pressure victims into transferring money. Its assessments suggest that mule account networks have become the backbone of cyber fraud, and dismantling them is critical to effectively curbing such crimes.
Police have reiterated appeals to the public to avoid trusting unsolicited calls, messages or video instructions without independent verification. A strong warning has also been issued against renting or selling bank accounts, with officials stating that mule account holders are treated as active participants in cybercrime and face stringent legal action.
Victims of cyber fraud have been advised to immediately contact the national cybercrime helpline 1930 or approach the nearest cybercrime police station. Officials said that as cybercrime becomes more organised and psychologically sophisticated, public awareness, vigilance and swift reporting remain the most effective tools to limit losses and break inter-State fraud networks.
