Gorakhpur: Uttar Pradesh Police have busted a cyber fraud racket that allegedly targeted people across India through fake loan applications and social media platforms, arresting two accused in connection with the operation. The arrested individuals have been identified as Manjeet Kumar (22), a second-year BSc student, and Vijay Vishwakarma (23), an ITI graduate. According to police, the duo allegedly deceived victims by promising low-interest loans, collected various online charges, and then neither disbursed the loans nor refunded the money.
Investigators said Manjeet Kumar allegedly created fake social media pages and fraudulent loan application platforms that advertised instant loans at attractive interest rates. The platforms were designed to attract individuals in urgent need of financial assistance.
After victims applied for loans, they were asked to pay registration fees, processing charges and insurance fees online. Once the payments were received, the accused allegedly stopped responding, neither approving the loans nor returning the money. Police believe the racket targeted victims across multiple states.
The investigation also revealed that Vijay Vishwakarma played a key role in managing the financial transactions. He allegedly arranged bank accounts in the names of relatives, friends and acquaintances in exchange for a commission of around 10 percent. These accounts were allegedly used to receive proceeds generated through cyber fraud.
According to investigators, the syndicate used hundreds of bank accounts to collect fraudulent funds. The money was subsequently withdrawn through ATMs and distributed among members of the gang, making it more difficult for authorities to trace the flow of funds.
Police said several of these bank accounts have since been frozen after being linked to cybercrime transactions. As a result, many account holders are now facing legal and financial complications. Investigators are also examining whether those who provided the accounts were knowingly involved in the racket or whether their identities were misused.
During the operation, police recovered mobile phones, ATM cards, SIM cards, banking documents and cash from the accused. The seized digital devices and documents will undergo forensic examination to determine the full scale of the operation, identify additional victims and establish the total amount defrauded.
According to the Future Crime Research Foundation, borrowers should always verify the authenticity of any loan app or website before sharing personal information or making payments. Loans should only be obtained through authorised financial institutions or regulated digital lending platforms. Any platform demanding advance payments in the name of registration, processing or insurance should be treated with caution, as such tactics are commonly used in online loan scams.
Police said further investigation is underway to identify other members of the syndicate, individuals who supplied bank accounts, and those who provided technical support. Investigators are also tracing the complete financial network used to launder the proceeds of the cyber fraud and identifying additional victims who may have been targeted by the racket.
