New Delhi: India’s battle against cyber-enabled financial crime has revealed a staggering trail of illicit money, with the Enforcement Directorate (ED) identifying proceeds of crime worth ₹34,855 crore linked to cyber fraud investigations under the Prevention of Money Laundering Act (PMLA). Of this, assets worth ₹12,229 crore have been provisionally attached so far, underscoring both the scale of digital fraud and the complexity of tracking its financial flows.
The figures were presented at a national conference on tackling cyber-enabled frauds, attended by over 500 investigators from central and state agencies. Officials described cybercrime as one of the fastest-growing sources of laundered money, with organised syndicates using layered financial structures and cross-border channels to move funds beyond the reach of enforcement.
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Investigators said the bulk of the illicit proceeds originated from illegal online betting platforms, cryptocurrency investment scams, predatory instant loan applications, Ponzi schemes, bogus forex and stock trading apps, impersonation frauds and so-called “digital arrest” rackets. These operations typically lure victims through social media, messaging platforms and fake trading dashboards before siphoning off funds through multiple banking and payment layers.
According to the ED’s findings, the laundering architecture relies heavily on mule bank accounts, often opened using stolen or rented identities, and shell companies created solely to receive and route fraudulent money. Payment gateways and merchant accounts are mis-declared to disguise the true nature of transactions, allowing large volumes of funds to pass through the formal financial system without immediate detection.
Once aggregated, the money is diverted through hawala operators, converted into cryptocurrencies, or sent abroad as fake import payments using forged invoices, airway bills, royalty claims and freight charges. Officials said such outward remittances are designed to create a veneer of legitimate trade while actually facilitating capital flight.
The agency has identified more than 1,000 mule accounts linked to cybercrime cases and found that many masterminds operate remotely, often from foreign jurisdictions, while controlling domestic financial channels through local associates and digital access.
Among the major investigations cited were the ₹6,000-crore Mahadev betting app case involving fugitives Saurabh Chandrakar and Ravi Uppal; the ₹5,000-crore OctaFX investment fraud allegedly run by Russian national Pavel Prozorov; the 1XBet illegal betting network, which has drawn scrutiny over endorsements; and the Birfa-IT remittance case involving over ₹4,000 crore in suspected laundering through overseas transfers.
Officials noted that cyber fraud has increasingly blurred the line between traditional financial crime and technology-driven offences, requiring coordinated action between enforcement, banking regulators, telecom operators and state police units. The use of cryptocurrencies and instant payment systems has significantly shortened the time window for freezing suspicious transactions, making real-time intelligence sharing critical.
The government has stressed a multi-agency approach to dismantle the ecosystem enabling cybercrime. This includes tighter KYC norms, enhanced monitoring of payment aggregators, analytics-based detection of mule accounts, and closer scrutiny of cross-border remittances linked to low-value import firms.
Investigators also highlighted the role of public awareness, noting that most fraud chains begin with social engineering — fake investment promises, loan approvals, job offers or impersonation calls — before escalating into financial theft and laundering.
With cyber fraud now accounting for a significant share of money-laundering probes, officials warned that enforcement alone cannot contain the threat. Preventive controls within banks and fintech platforms, faster freezing of suspect accounts, and international cooperation to track overseas operators will be crucial to reducing losses.
The ED’s data indicates that cybercrime is no longer a peripheral financial offence but a major organised economic threat, capable of generating tens of thousands of crores and moving them across jurisdictions within hours.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
