Chandigarh Police have arrested nine individuals in connection with a sprawling cyber fraud racket that defrauded victims of approximately ₹78 crore across multiple states. The operation involved a network of 31 bank accounts allegedly used to receive and launder proceeds of crime generated through various online scams. Police said the arrested accused are “habitual cyber fraudsters” with a history of involvement in digital financial deception.
The crackdown comes after police received nearly 200 complaints related to cyber frauds where numerous victims complained of unauthorised withdrawals, job offer scams, fake investment and loan applications, and related digital deception tactics. Investigators linked these complaints to a coordinated syndicate that used layered financial channels to move money quickly and evade detection.
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Fraud Network And Modus Operandi
According to senior police officials, the accused created, controlled and transacted through 31 bank accounts across various banks, including savings and current accounts held in different names. Funds obtained from victims were transferred into these accounts, then quickly split and redistributed to other accounts before being withdrawn or moved overseas.
The frauds reportedly involved a range of digital schemes — fake job offer portals, fraudulent loan and investment apps, identity impersonation scams, and social engineering tactics where victims were tricked into authorising payments. In some cases, the accused allegedly used forged documents and fake KYC information to open the bank accounts in the first place.
Police say many victims were enticed with promises of quick returns, high-paying job placements or easy loans. Once money was transferred, the alleged fraudsters cut off communication, making recovery difficult. In other incidents, victims were coerced via fear tactics, including threats of legal action or arrest, in classic “digital arrest” scams.
Arrests, Recovery And Zone-Wide Impact
The nine individuals arrested have been booked under relevant sections of the Indian Penal Code (IPC) and the Information Technology Act. Police have seized several mobile phones, SIM cards, bank passbooks, transaction records and other digital evidence during raids.
Officials say the crime syndicate operated not only in Punjab and Chandigarh but had victims from several states, reflecting the interconnected and borderless nature of cyber fraud in India’s digital economy. Several of the 200 complaints came from outside the region, with money traced through the same accounts spanning multiple states.
While investigators have traced and frozen a number of accounts linked to the ₹78 crore fraud, police warn that the total quantum of fraud may be higher, as some complaints are still under verification and analysis.
Habitual Offenders And Repeat Patterns
Officials described the nine arrested individuals as habitual cyber fraudsters, asserting that most had been associated with other cybercrime investigations in the past. Police allege that several had exploited lapses in banking KYC procedures to open accounts used explicitly for crime proceeds.
Investigators are analysing seized digital devices to map the broader network — including identifying upstream organizers and downstream beneficiaries of the fraud proceeds. Law enforcement sources said the syndicate likely leveraged multiple communication platforms, encrypted messaging services and VOIP calls to evade detection.
Police have also initiated coordinated liaison with other states’ cybercrime units, sharing data and complaint patterns to strengthen the ongoing probe and identify additional suspects.
Law Enforcement Strategy And Public Awareness
Chandigarh Police emphasised that cyber frauds have become increasingly sophisticated as fraudsters exploit technological loopholes and financial system vulnerabilities. Officers reiterated the need for heightened vigilance by citizens, especially while sharing personal details online or engaging with unfamiliar digital services.
Authorities urged victims to immediately report any suspicious activity and provide digital evidence, such as message logs and transaction records, to aid quicker tracing and recovery. Police also highlighted the importance of robust digital literacy campaigns to educate the public about common scam tactics.
Cybercrime experts say that rapid fund movement through layered accounts and mule banking networks is a hallmark of organised cyber fraud. Strengthening of KYC norms, enhanced real-time transaction monitoring and cross-agency cooperation are seen as key elements in combating such fraud rings.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
