Police have arrested three men for allegedly operating a cyber fraud “cash-out” network that converted money obtained through online fraud into US dollars before transferring the funds to cybercriminals.
What Is a Cash-Out Network?
A cash-out network is a system used to turn money obtained through cyber fraud into cash or other forms that can be moved or used more easily. In this case, the accused allegedly withdrew cyber fraud proceeds through bank accounts, converted the cash into US dollars and transferred the money further. Such networks may use multiple bank accounts and money mules to receive and move fraud proceeds.
Three Men Arrested
The arrested men were identified as Paraskhan, 23, Habib Mohammed, 21, and Mohammed Mubarak, 23. Cybercrime police arrested them after personnel from the Nagamalai Pudukottai police station intercepted the trio during a patrol on Monday.
Police suspect they operated on behalf of cybercriminals and used money mules or bank accounts belonging to other people to withdraw fraud proceeds.
Proposal for Conducting Cyber Crisis Drill, Tabletop Exercise (TTEx) & CCMP Readiness Exercise
What Did Police Seize?
Police seized 26 bank passbooks, 18 mobile phones, 77 ATM cards, 18 cheque books and 60 SIM cards from the accused.
The number of banking and telecom-related items led police to suspect that multiple bank accounts and mobile connections were being used for cyber fraud transactions.
How Was the Money Converted?
The accused allegedly withdrew cyber fraud proceeds in cash and converted the money into US dollars before transferring it further.
Police said the trio received a commission of Rs 6,300 for every Rs 1 lakh converted into $1,000.
How Were Bank Accounts Used?
Police said Paraskhan allegedly procured bank accounts belonging to several people and used them to receive and transfer money obtained through cyber fraud.
The three accused had allegedly rented a house in Nagamalai Pudukottai and operated the network from there.
Police said the trio had earned nearly Rs 10 lakh in commissions over the past year. The money was allegedly shared among them and spent.
Why Are P2P Networks a Concern?
Cybercrime officers said this commission-based intermediary model is particularly visible in Ramanathapuram and is increasingly attracting youngsters elsewhere in southern Tamil Nadu seeking quick returns.
Police believe the arrested men were only intermediaries in a much larger network. Investigators said tracing every layer of such networks is difficult because P2P transactions have encouraged people to rent out bank accounts, SIM-linked identities and Aadhaar credentials for money.
Police Warn Against Renting Bank Accounts
Police warned that people who rent out bank accounts or provide SIM cards for commissions, as well as those involved in converting and transferring cyber fraud proceeds, could face stringent action.
Victims of financial cyber fraud have been advised to immediately contact the national cybercrime helpline at 1930 or file a complaint through the National Cyber Crime Reporting Portal.
About the author — Ayesha Aayat writes on cybercrime, digital safety, and emerging online threats. Her work focuses on public awareness, legal clarity, and technology-driven risks.
