The Enforcement Directorate (ED) has exposed a major cyber financial fraud operation worth ₹641 crore, leading to the arrest of two chartered accountants, Ashok Kumar Sharma and Bhaskar Yadav. Authorities allege that the accused were involved in running a digital investment scheme that lured people across the country with promises of high returns through online earning offers.
Investigators stated that the fraud was primarily conducted through a digital scheme that promoted attractive investment opportunities, part-time job offers, QR code-based payment scams, and phishing techniques. Victims were allegedly enticed by promises of quick and high profits. Initially, small returns were reportedly given to build trust, after which the invested funds were frozen.
Mule Accounts to Shell Firms
The investigation revealed that the illicit funds were first routed through mule bank accounts managed via Telegram groups. The money was then fragmented into smaller transactions and transferred across a network of dummy and shell companies operating throughout India. Officials said this method was used to complicate the money trail and delay detection.
Authorities further discovered that the illegally obtained funds were transferred through Indian bank Visa and Mastercard debit cards to foreign fintech platforms. During the probe, it was found that a portion of the money was moved to a United Arab Emirates-based fintech service named ‘PYPL’, allegedly as part of an attempt to obscure international transactions.
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Telegram-Powered Crime Network
Officials believe the scam was part of an organized cyber financial crime network that exploited technical vulnerabilities in financial systems. Telegram channels were reportedly used to promote the scheme, connect with investors, and manage payment collections. Investigation teams are now working to identify other individuals and entities connected to the network.
The ED stated that digital devices, financial records, and suspicious transaction data were seized from the accused. These documents are being analyzed to trace the full operational structure of the fraud network. The investigation is also expanding to include mule accounts and shell companies allegedly used to conceal illicit proceeds.
Cyber financial crime analysts believe that the use of digital platforms enables rapid promotion and payment aggregation, helping criminal networks expand quickly. Investors have been advised to verify the legitimacy and regulatory registration of any online investment scheme before transferring funds.
Public Caution Advised
ED officials warned that individuals should exercise caution when dealing with companies promising unusually high profits through digital investment plans. The public has been advised to avoid suspicious links, Telegram channels, and unauthorized QR code payment requests.
The investigation is ongoing, and authorities have indicated that more arrests may follow as the probe advances. Officials also stated that international cooperation may be sought to dismantle the entire cyber fraud network.
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.
