The Jammu & Kashmir Police have dismantled a major transnational online investment scam that defrauded investors of at least ₹209 crore, and possibly more than ₹400 crore, officials said on 16 February 2026. Nine people, including an MBBS doctor from Haryana, have been arrested in connection with the sophisticated fraud network that operated across India and internationally.
The case was registered at the Ganderbal Police Station following a complaint by Firdous Ahmad Mir, a resident of Safapora in Ganderbal district, who alleged identity theft and cheating by an online fraud gang. A Special Investigation Team (SIT) was formed under Ganderbal SSP Khalil Ahmad Poswal, with subject matter experts brought in to probe the extensive cybercrime network.
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How the Scam Operated
Investigators found that the fraudsters ran fake online investment and trading websites promoted on social media and search engines, including platforms like paisavault.com, which lured the public with promises of high returns through cryptocurrency and coin trading schemes. After victims invested funds, their money was diverted into local bank accounts in districts such as Budgam, Srinagar, Ganderbal and Baramulla. These accounts were then used to quickly transfer money outside Jammu & Kashmir and even overseas via multiple layers of transactions to evade detection.
Police said the group targeted vulnerable individuals, including Below Poverty Line (BPL) account holders, offering them ₹8,000 to ₹10,000 per month in exchange for access to their bank accounts and ATM cards. Some bank employees are also suspected of involvement by reportedly providing QR codes linked to these mule accounts, which were uploaded to the fake investment portals.
Through the investigation, authorities identified 835 bank accounts, with 290 verified transactions amounting to ₹209 crore already traced. Officials believe the total amount collected through these fraudulent schemes is likely to exceed ₹400 crore once all accounts and transactions are fully verified.
Key Arrests and Network Roles
The alleged mastermind of the scam has been identified as Ekant Yogdutt, also known by the alias “Dr Morphine”, a resident of Hisar in Haryana. According to police, Yogdutt learned cyber fraud techniques while pursuing his MBBS degree in the Philippines and maintained connections with foreign nationals, including Chinese contacts. He was arrested by Ganderbal Police at Indira Gandhi International Airport in Delhi while returning from China.
The other eight accused were apprehended from various parts of the Kashmir region. They are believed to have acted as regional heads and account mobilisers within the scam network. They include individuals from Ganderbal, Budgam, and Baramulla who coordinated recruitment, managed accounts and helped process fraudulent transactions.
Investigation Status and Public Warning
Police are continuing to trace the complete money trail and have begun steps to attach properties acquired through the criminal proceeds. Authorities have also warned the public against falling for online investment platforms that promise unrealistic returns, reminding people not to rent out their bank accounts for small monetary benefits, which can make them complicit in fraud.
Victims and those with information related to similar scams have been urged to file complaints through the national cybercrime portal or by calling the toll-free helpline at 1930.
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.
