Muzaffarpur | A highly organised cyber fraud racket operating under the guise of a private company’s franchise network has been exposed in Bihar’s Muzaffarpur district, revealing a sophisticated scheme that allegedly cheated both customers and the company itself. Cyber police have arrested an active member of the gang, identified as Md. Chand, while the alleged mastermind behind the operation is still absconding. Raids are continuing to trace other members linked to the network.
Investigators said the accused misused the authorised franchise system of a private company to gain customers’ trust and obtain OTPs under the pretext of order processing and technical assistance. Once access was gained, customer orders, refund requests and payment details were allegedly manipulated, with money being diverted into accounts controlled by the gang. Officials believe the racket caused significant financial losses not only to customers but also to the company whose digital infrastructure and reputation were exploited.
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The fraud came to light after cyber police began receiving repeated complaints from customers regarding suspicious refund activities and unauthorised modifications in online orders. Following the complaints, a technical surveillance operation and detailed investigation were launched. During the probe, police traced suspicious activities to a network operating in the Motipur police station area of Muzaffarpur district.
Based on technical evidence and human intelligence inputs, multiple raids were conducted simultaneously at different locations. During the operation, police recovered laptops, mobile phones, scanners and several other electronic devices from a warehouse allegedly being used as the operational hub of the cyber fraud network. Officials suspect the location served as a backend control centre for managing fraudulent transactions and customer data manipulation.
Preliminary investigation revealed that Md. Chand was operating a franchise linked to a private solutions company. Police alleged that he used to contact customers claiming to assist them with service-related issues and then asked them to share OTPs for verification purposes. After obtaining the OTPs, order details were altered and refund amounts redirected to fraudulent accounts. In several cases, victims reportedly remained unaware for a long period that transactions linked to their accounts had already been modified.
Police are now trying to determine how many customers across different states may have been targeted through the network and the total amount siphoned off through the alleged fraud. The seized electronic devices are being sent for forensic examination to retrieve transaction histories, digital records, bank account trails and communication details that may reveal the involvement of additional accused persons.
Investigating agencies suspect the operation was not limited to a single district and may have targeted customers across multiple states through a coordinated network. Cyber experts believe such frauds are increasing rapidly because criminals are now exploiting trusted business models and franchise systems to gain easy access to sensitive customer information.
According to Future Crime Research Foundation, cyber criminals are increasingly relying on social engineering techniques while disguising themselves as legitimate service providers and authorised franchise operators. In many cases, customers fail to realise they are interacting directly with fraudsters because the setup appears identical to a genuine company support system.
Renowned cyber crime expert and former IPS officer Prof. Triveni Singh said OTPs, refund verification links and account confirmation requests have become some of the biggest tools used by cyber criminals in organised online frauds. He warned people never to share OTPs, banking credentials or account verification details over phone calls, regardless of how authentic the caller may appear.
Cyber police are continuing to investigate the larger network and searching for the absconding mastermind. Officials believe further interrogation of the arrested accused could lead to more disclosures regarding the scale of the operation and its interstate connections. Investigators say the case highlights a rapidly evolving trend in cyber crime where fraudsters are weaponising not only technology but also customer trust and legitimate business systems to execute organised digital frauds.
