The Karnataka Cyber Crime Police have arrested two individuals from Hyderabad in connection with a major ₹15.45 crore ‘digital arrest’ fraud case. The scam involved a Belagavi-based businessman who was falsely targeted by fraudsters impersonating senior CBI officers and coerced into transferring large sums of money under the threat of a fabricated money laundering investigation. The alleged mastermind of the network remains absconding.
According to investigators, the victim was kept under continuous psychological pressure through video calls, where the fraudsters simulated an “official investigation” and created an atmosphere of fear by claiming imminent arrest. Under this sustained intimidation, the businessman transferred crores of rupees into multiple bank accounts.
Fake CBI officers staged elaborate conspiracy
Police said the accused posed as senior officials of the Central Bureau of Investigation and created a structured fake probe linking the victim to a non-existent financial crime case. The fraudsters even attempted to reinforce credibility by falsely associating the case with high-profile names, including former Jet Airways promoter Naresh Goyal, to intensify pressure on the victim.
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During the entire period, the victim was kept on video calls and warned that any non-compliance would lead to immediate arrest, effectively placing him in what investigators describe as a “psychological captivity” situation.
₹15.45 crore fraud and money trail exposed
The case was originally registered on March 18 at the Belagavi City Cyber Crime Police Station. Following a detailed investigation, police conducted a targeted operation in Hyderabad and arrested two accused identified as Venkatesh Sharath Naik and Degavat Sripada Naik.
Authorities said the duo played the role of “first-layer account holders” in the fraud network. These accounts were used to receive and route stolen funds before they were transferred further into a layered chain of accounts to obscure the money trail and delay detection.
The accused were produced before a court on April 7 and have since been taken into custody for further interrogation.
Growing threat of digital arrest scams
Cyber experts warn that the “digital arrest” model has emerged as one of the fastest-growing forms of online financial fraud in India. In these cases, criminals impersonate law enforcement or regulatory authorities, using fear and authority to mentally trap victims during prolonged video or audio calls.
Victims are made to believe they are under active criminal investigation, even though no such case exists. This sustained deception often leads to panic-driven financial transfers before victims can verify the authenticity of the claims.
Expert warning: fear psychology becoming key weapon
Renowned cyber crime expert and former IPS officer Professor Triveni Singh has cautioned that such scams rely heavily on psychological manipulation rather than just technological deception. He noted that fraudsters now systematically combine fake legal narratives, identity impersonation, and continuous surveillance tactics to break the victim’s decision-making ability.
According to him, the biggest risk lies in the fact that victims act under extreme fear and urgency, often transferring money without verification, making recovery extremely difficult once funds are layered across multiple accounts.
Network under investigation across states
Investigators suspect that the racket is not limited to Karnataka and Telangana and may have wider interstate links. Agencies are now analysing bank records, transaction patterns, device data, and call detail records to trace the full syndicate and identify additional operatives involved in the laundering chain.
Police officials have confirmed that efforts to locate the mastermind are ongoing, and more arrests are likely as the investigation progresses.
The case highlights the rapidly evolving nature of cybercrime, where criminals are increasingly combining technology with psychological coercion to execute large-scale financial frauds. Authorities have urged citizens to remain cautious and avoid responding to any online claims of arrest or investigation. Any such communication should be independently verified through official channels, and complaints should be immediately reported to cybercrime helplines.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
