A sprawling international cybercrime network operating from Southeast Asia has been found using bogus Indian companies and NGOs to park proceeds of so-called “digital arrest” scams, investigators have revealed. The racket, believed to be run from Cambodia, targeted Indian victims while relying on inter-state mule account networks to launder the extorted money through Indian banks.
The investigation centres on a case in which a retired professor and his wife from Ratlam district in Madhya Pradesh were allegedly placed under digital arrest for nearly 28 days and coerced into transferring ₹1.34 crore. The couple was reportedly terrorised into believing their identity documents had been used to launder ₹247 crore, before the fraudsters extracted the money in phases.
The fraud came to light only after the couple’s son returned from Canada and discovered what had transpired. A criminal case was subsequently registered, and a special investigation team was formed to trace the financial and digital trail.
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Cambodia link and Indian mule networks
Investigators say technical analysis of internet protocol data pointed to the fraud originating outside India, with strong indicators linking it to Cambodia-based cybercrime syndicates. The probe then uncovered a complex, multi-layered system of mule bank accounts spread across several Indian states.
So far, 15 people have been arrested from six states, including Gujarat, Madhya Pradesh, Assam, Uttar Pradesh, Bihar and Jammu and Kashmir. The arrested individuals allegedly played different roles — from sourcing bank account holders to facilitating transactions and providing access to international handlers.
At the centre of the Indian mule network, investigators say, is Sumiran Sharma, a young woman based in Jammu, who allegedly coordinated the supply of mule accounts to the overseas syndicate. Through intermediaries across the country, she remained in touch with smaller gangs responsible for opening and handing over bank accounts.
Bogus firms, fake NGOs and paper turnovers
The probe has revealed that six key mule accounts were used to initially park the ₹1.34 crore extorted from the Ratlam couple. These accounts were opened in private banks in the names of business firms and NGOs that existed only on paper.
Documents submitted to banks showed these firms as having annual turnovers ranging from ₹50 lakh to ₹1 crore, despite having no real operations. In many cases, unemployed high-school pass, intermediate or graduate individuals were shown as directors or office-bearers. They were allegedly promised a share of the money in return for lending their identities.
Investigators say each mule account was typically used for just one day, during which large sums were routed through it before being transferred to the next layer of the laundering chain.
Money moved at high speed
From the initial six accounts, the money was allegedly funnelled into a second layer of at least 64 additional bank accounts, the details of which are still being uncovered. In one instance, investigators found that ₹1 crore was routed through a single account in a single day, highlighting the speed and scale at which the network operated.
Further scrutiny has shown that these same mule accounts were not used only for the Ratlam case. Funds from other cyber frauds across multiple states were also routed through them, indicating that the network was part of a larger national laundering operation linked to international cybercrime.
Remote access and digital control
Investigators say Sumiran Sharma accessed and controlled mule accounts remotely using APK files, allowing her to manage transactions without physically visiting banks. During questioning, she reportedly claimed she was working on the instructions of her partner, who is currently absconding.
The case has underlined how international cybercrime syndicates exploit India’s banking system by combining social engineering, fake corporate identities and digital access tools to launder illicit funds at scale.
Rising threat of ‘digital arrest’ scams
The investigation has also highlighted the growing menace of digital arrest scams, where victims are psychologically manipulated into believing they are under official investigation and are forbidden from contacting others.
With the probe still expanding and more accounts under scrutiny, investigators believe further arrests are likely. The case has raised serious concerns about gaps in bank account verification processes and the increasing sophistication of cross-border cybercrime targeting Indian citizens.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
