Kochi. A 56-year-old woman from Perumbavoor in Kerala has allegedly fallen victim to a digital arrest and cryptocurrency fraud, losing ₹1.72 crore. An unidentified accused allegedly posed as an Indian Consulate official and told the woman that ₹9 crore had been transacted through her son’s bank account. She was allegedly threatened with arrest and told that the money in her possession needed to be verified.
According to the FIR, the accused allegedly convinced the woman that the funds would be returned after verification if they were found to be legitimate. She was then allegedly given repeated instructions to transfer money from her bank accounts. The woman was reportedly kept under digital surveillance for nearly 27 days, from July 8 to August 3.
Proposal for Conducting Cyber Crisis Drill, Tabletop Exercise (TTEx) & CCMP Readiness Exercise
The Ernakulam Rural Cyber Police have registered a case and begun an investigation. Investigators are examining the bank transactions, cryptocurrency purchases, digital wallets and the movement of the money to identify the people involved and trace the suspected fraud network.
Fear created over ₹9 crore transaction
According to the FIR, the accused contacted the woman while claiming to be an official of the Indian Consulate. During the conversation, she was allegedly told that ₹9 crore had been transferred through her son’s bank account. The accused allegedly presented the transaction as part of a serious financial offence and warned the woman that she could face arrest.
The woman was allegedly told that her financial assets had to be checked as part of an official verification process. She was reportedly assured that the money would be returned once the verification was completed and the funds were established to be legitimate.
Under these instructions, the woman allegedly transferred money from different bank accounts as directed by the accused.
Kept under digital surveillance for 27 days
The woman was allegedly kept under digital surveillance from July 8 to August 3. During this period, the accused allegedly remained in contact with her and pressured her to follow instructions. She was also allegedly discouraged from discussing the matter with other people.
Digital arrest scams typically rely on fear and impersonation, with fraudsters posing as officials of law-enforcement or government agencies. Victims are made to believe that they are involved in a criminal investigation and could be arrested unless they comply with instructions. In some cases, criminals keep victims connected through calls or video calls for extended periods and use the fear of legal action to obtain financial information or induce transfers.
Bank funds allegedly converted into Bitcoin
Investigators have found that the accused allegedly helped create a cryptocurrency account or wallet for the woman. Funds held in US dollars in some of her other bank accounts were allegedly transferred through another account to a wallet associated with the cryptocurrency platform Strike.
The money was allegedly used to purchase Bitcoin. The woman was reportedly told that the Bitcoin being purchased was being transferred to an investigating agency as part of the supposed financial investigation.
This allegedly enabled the fraudsters to move the victim’s money from the conventional banking system into cryptocurrency. Investigators suspect that the digital assets may have subsequently been transferred through cryptocurrency wallets controlled or directed by the accused.
Police tracing cryptocurrency transactions
The cyber police are now examining the movement of the woman’s funds from her bank accounts to cryptocurrency wallets. Investigators are also checking the details of Bitcoin purchases and subsequent wallet transactions to determine where the digital assets were ultimately transferred.
A key part of the investigation is identifying the accused and determining whether others were involved. Bank transaction records, account details and digital transaction trails are being examined to establish how the money moved after leaving the woman’s accounts.
The case highlights how digital arrest fraud is increasingly being combined with cryptocurrency-based money movement. Instead of simply transferring money to a bank account, victims can be manipulated into purchasing cryptocurrency and transferring digital assets, making the money trail more complex.
The investigation is continuing, with police examining the cryptocurrency transactions and wallet details to trace the suspected proceeds and identify those responsible for the alleged ₹1.72 crore fraud.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
Follow for daily updates on cybercrime, corporate fraud, DFIR, hacking, investigations, and digital forensics
