Delhi Police have arrested five people for allegedly posing as Paytm executives and cheating street vendors and small shopkeepers in Shahdara. Investigators suspect the group may have targeted around 50 to 60 people through fake KYC assistance, QR code updates and soundbox replacement offers.
The case came to light after a vegetable vendor, identified as Ramavtar, reported losing ₹95,000. Two men allegedly approached him on October 20, claiming to represent Paytm and offering to resolve a KYC-related issue and update his QR code soundbox.
Under that pretext, they took possession of his mobile phone. Two unauthorised transactions of ₹50,000 and ₹45,000 were subsequently carried out from his account.
The Cyber Police Station in Shahdara registered FIR No. 55/26 on October 26 and began investigating the transaction trail. Police said the five arrests followed an examination of bank accounts, CCTV footage and other evidence.
Fake KYC And QR Code Updates Used To Approach Shopkeepers
According to the investigation, the accused allegedly targeted street vendors and small business owners by presenting themselves as representatives of the digital payments company. They offered help with KYC problems, QR code updates and replacement of payment soundboxes.
Such visits can appear routine to small merchants who depend on digital payment devices for daily business. The alleged fraudsters used that familiarity to gain access to a victim’s mobile phone, which could then be used to carry out unauthorised financial transactions.
Police suspect the group may have used the same approach in 50 to 60 incidents. This figure remains an investigative estimate and does not establish that all those suspected victims have been identified or have filed complaints.
The case also highlights the risk of allowing an unknown person to handle a phone linked to banking applications and payment accounts. A person claiming to be a company representative should not be given access to a merchant’s device simply because they offer to resolve a technical or KYC-related problem.
Two Allegedly Approached Victims While Three Handled Money
Police identified the five arrested accused as Juned, 23; Anas, 19; Mohit, 24; Rohit, 19; and Sumit Kumar, 19. They are from different parts of Delhi and Uttar Pradesh.
Investigators allege that Juned and Anas approached shopkeepers and impersonated Paytm executives. The other three allegedly supplied bank accounts through which the cheated money was routed and withdrawn.
A Paytm employee identity card was reportedly found on Juned’s mobile phone. Police said he had previously been associated with the company. This does not establish that Paytm was involved in the alleged fraud or that the accused were authorised to represent it.
The investigation has also linked the group’s bank accounts to around 20 cybercrime complaints and cases registered across India. Police are examining whether these accounts were used in other fraud operations and whether additional people were involved.
The arrests followed an investigation led by the Shahdara cyber police team. Officers examined the money trail and CCTV footage to identify the accused and trace the alleged movement of funds.
Police also recovered six mobile phones, seven SIM cards, four ATM cards and three cash-withdrawal slips, according to reports on the operation. These items are expected to form part of the continuing investigation into the suspected network.
What This Means For Small Merchants
The alleged method relies on a simple but consequential form of impersonation: approaching a shopkeeper in person and claiming that a payment device or KYC record needs urgent attention.
Small businesses that use QR codes and soundboxes should verify any such request directly through the company’s official customer-support channels. Merchants should not hand over their phones, share banking PINs or disclose OTPs to visitors claiming to be payment-service executives.
A genuine technical update should not require an unknown representative to take control of a merchant’s personal phone or banking application. If an unexpected transaction appears, the account holder should contact their bank immediately and report the suspected fraud through India’s cybercrime reporting system.
The Shahdara investigation is continuing, with police examining the suspected wider network and the complaints linked to the arrested accused. The estimated number of victims and the full extent of the alleged fraud will depend on the findings of that investigation.
