New Delhi: An interstate cyber fraud network allegedly involved in cheating people in the name of fake franchises and online loans has been busted, with five accused arrested from Bihar’s Nawada and Nalanda districts. Police said the gang allegedly lured victims with offers of fertiliser company franchises and also targeted people searching for loans online. Investigators have found 498 cybercrime complaints linked to the accused across the country and suspect that the network may have cheated victims of nearly ₹3.5 crore.
The action followed an investigation into a cyber fraud case registered at Jainath Police Station in Telangana’s Adilabad district. A resident of Mandagada village had complained that he was allegedly cheated of ₹3.85 lakh after being promised a fertiliser company franchise. Following the complaint, police examined bank accounts, mobile numbers and digital transactions. Technical evidence eventually led investigators to Nawada and Nalanda in Bihar, where the five accused were arrested.
According to police, the accused maintained an apparently ordinary lifestyle in Bihar while allegedly targeting victims in different parts of the country through online channels. The gang had allegedly created a fake website in the name of a fertiliser company franchise. The website offered an online application facility through which people interested in obtaining a franchise were asked to provide personal and financial information.
The accused allegedly contacted applicants through phone calls, WhatsApp and email after collecting their details. Police said victims were asked to provide Aadhaar cards, PAN cards, photographs and bank account information. The gang allegedly demanded payments at different stages of the franchise process, including service charges, licence fees and trade transfer fees. After receiving the money, the accused allegedly stopped responding to the victims.
Investigators also uncovered a second fraud method involving online loans. According to police, the accused identified people searching for loans on the internet and approached them with promises of easy loan approvals. Personal and financial information was collected through online applications. The victims were then allegedly asked to make repeated payments in the name of loan processing, verification and other charges. Aadhaar and PAN details were allegedly used during the process to extract money from victims.
Renowned cyber crime expert and former IPS officer Prof. Triveni Singh said such frauds typically begin with criminals creating a false sense of legitimacy through fake websites and online applications. Once personal documents and banking information are collected, the same data can be used to build trust and demand further payments. He said repeated demands for processing, verification or other charges in the name of a franchise or loan should be treated as a major red flag. Independent verification of the company, website and official contact details is essential before making any payment.
Police said information about 498 cybercrime complaints across the country has emerged against the accused. Around 90 complaints have reportedly been registered in Telangana alone. The scale of the complaints has raised suspicions that the gang operated an extensive interstate network. Investigators are now examining how many of these cases are connected to the same websites, mobile numbers or bank accounts.
The five accused were arrested on the basis of technical evidence and were subsequently sent to judicial custody. Police recovered 10 mobile phones and ₹70,000 in cash from them. Investigators are examining the seized devices to identify their digital contacts, potential victims and other members allegedly connected with the network.
The investigation also revealed that the accused had allegedly invested around ₹8 lakh of the proceeds in bank accounts and the stock market. Police said the money held in the relevant bank accounts and the associated shares have been seized or frozen following due legal procedure. Investigators are now tracing the wider financial network and the suspected money trail linked to the alleged fraud.
The case highlights how cybercriminals are increasingly using fake websites and online applications to exploit people seeking business opportunities or financial assistance. By first collecting Aadhaar, PAN and banking details and then using the information to demand payments, fraudsters can make fake offers appear credible. Experts advise people to independently verify a company’s registration, official website and contact details before paying any franchise, loan processing or investment-related fees. The investigation is continuing to identify other suspected members and establish the full extent of the network.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
