Faridabad | In a country increasingly dependent on digital payments, a new crisis has hit thousands of ordinary citizens. While cybercriminals continue to devise sophisticated scams, many innocent people now find themselves trapped in the fallout.
The trigger: a ₹4.43-crore cyber fraud case in Faridabad, which led to the freezing of over 36,000 bank accounts across India. What makes the situation alarming is that a large number of these account holders had no direct connection to the fraud — their accounts were blocked merely because a fraction of the defrauded funds passed through them.
“My account was frozen for receiving ₹826”
Sitting at his small household goods shop in Mumbai’s Andheri West market, Sudhir recounts his ordeal. “A customer transferred ₹826 to me via UPI. Two days later, the bank sent a message saying my account was frozen because the funds were linked to a cybercrime. I’ve been running from pillar to post for over a month now to get it reopened,” he says.
Sudhir insists that a common shopkeeper cannot possibly know whether a customer’s UPI transfer is linked to a scam. Police investigations later confirmed that he had no involvement in any fraud, and the local police even wrote to the bank recommending that his account be restored — but the process remains stalled.
One case, nationwide disruption
The NIT Cyber Police Station in Faridabad is investigating the ₹4.43-crore scam. So far, nine people have been arrested, all identified as key members of the fraud ring who deliberately used fake or compromised bank accounts to circulate stolen money.
After the victim lodged a complaint through the National Cyber Helpline (1930), the Union Home Ministry’s automated fund-tracing system flagged and froze every bank account through which the stolen funds had been routed — even if the holders were unaware of it.
As a result, thousands of traders, vendors, fuel station owners and small business operators suddenly found their bank accounts blocked, leaving them unable to withdraw or deposit money.
“People come here in tears,” says cyber police officer
According to NIT Police Station in-charge Jitendra Kumar, the department is receiving 10–12 new requests every week from citizens seeking to have their accounts reactivated. “People come crying. Some had only ₹200 or ₹500 transferred to their accounts, yet the banks froze them. A few have even approached the High Court to get their accounts reopened,” Kumar said.
He explained that once a cybercrime complaint is logged, the system automatically freezes all linked accounts to prevent the suspects from withdrawing or diverting money. “Unfortunately, innocent people get caught in this chain because the freeze happens before any verification,” he added.
Complaints pouring in from across states
Calls and petitions have been received from Uttar Pradesh, Bihar, Rajasthan, Madhya Pradesh, Maharashtra, Gujarat, West Bengal, Delhi, Himachal Pradesh, Uttarakhand, and Karnataka. Most complainants are small merchants or shopkeepers who accepted digital payments from customers without realising the funds might have originated from a scam.
Police write to Home Ministry, seek review mechanism
The Faridabad Police have sent a detailed report to the Union Home Ministry, urging that accounts should not be frozen without a preliminary verification process. The ministry has been requested to introduce a tiered mechanism that differentiates between active fraud participants and unwitting intermediaries.
So far, police have arrested nine key suspects — identified as Himanshu, Arish, Gaurav, Monik, Ravi, Khilafat, Mohammad Qadir, and Sushil from Surat — all accused of knowingly facilitating the scam. Until further directions from the ministry, banks have been instructed not to unfreeze any of the linked accounts.
A call for balanced enforcement
Experts say the current automated system, though effective in stopping fraudsters, is too sweeping in its impact. “Thousands of accounts can be blocked at the click of a button, but it takes months for innocent users to get relief,” said a senior cybersecurity analyst.
Banking and cyber authorities, they say, must adopt a more balanced and transparent approach — one that ensures accountability without penalising citizens who unknowingly become part of a fraudulent transaction chain.
