Mumbai: The Enforcement Directorate (ED) has arrested two Mumbai-based men in connection with a money-laundering investigation into an alleged pan-India cyber fraud and “digital arrest” network involving transactions estimated at nearly ₹30,000 crore, officials said on Monday.
The arrests of Fahim Moin Hussain Sayed and Naim Mueen Sayyed were made on Sunday as part of the agency’s probe into a sprawling cybercrime network suspected of defrauding victims across several states and Union Territories. The investigation was initiated after a woman in Goa was allegedly subjected to a “digital arrest” scam and lost around ₹2.60 crore.
The ED’s investigation has reportedly uncovered a massive financial trail linked to the suspected network. Authorities suspect that bank transactions worth approximately ₹27,000 crore, along with around ₹3,000 crore in cash dealings, were connected to the alleged cyber fraud operation.
According to investigators, funds obtained through cyber fraud were routed through mule bank accounts before being withdrawn through ATMs and Cash Deposit Machines. The money was then allegedly moved through multiple layers of financial transactions and converted into foreign currency or transferred through other channels to conceal its origin.
The probe has also revealed the suspected use of shell or dummy companies. Investigators found that some individuals listed as directors of these entities were allegedly drivers or employees living in single-room accommodations, raising suspicion that their identities may have been used to create a complex financial network for routing illicit funds.
The scale of the investigation is reflected in the number of complaints and criminal cases linked to the suspected network. The ED is examining connections to around 300 victim complaints and 150–160 FIRs registered across 20 states and Union Territories, according to officials.
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“Digital arrest” scams typically involve fraudsters impersonating police officers, officials of central agencies, bankers or other government authorities. Victims are falsely told that their identities, bank accounts or mobile numbers have been linked to serious crimes. They are then threatened with arrest and forced to remain on video calls while being pressured into transferring money.
The latest arrests mark a significant development in the ED’s efforts to trace the financial infrastructure supporting large-scale cyber fraud in India. Investigators are now expected to examine the wider network, identify additional beneficiaries and trace the movement of the suspected proceeds of crime.
The investigation remains ongoing, with authorities continuing to analyse banking records, company structures and the suspected money trail to identify other individuals and entities allegedly involved in the operation.
