The arrests of 11 men by Mangaluru City Police last week were the result of a trail that started with one victim’s loss of ₹1.38 crore and quickly expanded into a far larger picture. Investigators say the case, registered at the city’s cyber crime police station, led them to a sophisticated international fraud network operating primarily out of Nepal, with additional links to Cambodia and other countries.
Addressing the media, Mangaluru City Police said the accused were part of a group comprising at least 16 Indian nationals and several Chinese nationals. Nepalese authorities have arrested the Chinese suspects, while five Indian members of the network remain absconding. Police believe the operation targeted Indian investors nationwide, extracting money at an industrial scale through digital deception.
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The 11 men arrested—hailing from Gujarat, West Bengal, Jharkhand, Uttar Pradesh, Bihar and Rajasthan—were picked up in Kerala after investigators traced digital and financial footprints across multiple states.
Inside the Financial Machinery of the Scam
As devices seized from the accused were examined, the scale of the operation became clearer. Police said data recovered from mobile phones and laptops pointed to at least 624 bank accounts used to move illicit funds. More than 4,580 complaints linked to these accounts have already been recorded on the National Cyber Crime Reporting Portal.
In one account alone, investigators found transactions worth ₹167 crore. Another cluster of 10 accounts—linked to 128 complaints and 36 FIRs across India—had processed around ₹30.70 crore. Officials said many more accounts are yet to be fully analysed, and the final amount involved could run into several thousand crores.
The structure, police said, was designed to fragment transactions, rotate accounts quickly and stay ahead of detection. Fraud proceeds were routinely converted into USDT cryptocurrency and transferred abroad, complicating efforts to trace the end beneficiaries.
Recruitment, ‘Digital Slaves’ and Crypto Trails
According to investigators, the network operated in layers. One group, based in Nepal, focused on recruiting bank account holders and “agents” through Instagram and Telegram advertisements posted under fake company names. These ads sought current and corporate accounts, OTP handlers and USDT-to-INR exchange operators, offering commissions of 5 to 10 percent along with travel perks, including flights, hotels and local transport.
Once recruited, account holders were taken to Nepal or Dubai, where their SIM cards were inserted into company-controlled phones. From there, handlers accessed net banking platforms to move funds on command. The money was converted daily into cryptocurrency and routed overseas.
Another arm of the operation, police said, functioned out of Cambodia and other countries. From there, callers contacted Indian citizens through WhatsApp, Facebook, Instagram and Telegram, pitching high-return investment opportunities. Victims were shown fake apps displaying inflated profits; small initial payouts were made to build trust before larger sums were solicited.
To communicate effectively with targets across India, the network allegedly employed “digital slaves”—individuals tasked with messaging victims in local languages, maintaining the illusion of legitimacy and personal engagement.
International Enforcement and an Expanding Probe
The investigation has required coordination beyond India’s borders. Nepal Police, police said, have acted against the Chinese nationals allegedly involved, while Indian authorities continue efforts to locate absconding suspects and freeze additional accounts.
Officials estimate that the gang was cheating Indian investors of ₹60 lakh to ₹1 crore every day at its peak. The devices seized—one laptop, 21 mobile phones, 20 SIM cards and 20 debit and credit cards—are now central to a widening forensic examination.
For law enforcement, the case has become emblematic of a broader challenge: fraud networks that exploit social media, cryptocurrency and cross-border mobility faster than regulatory systems can respond. For now, investigators say, the arrests in Mangaluru have disrupted one node of a much larger operation—one whose full contours are still coming into view as financial trails are pieced together, account by account, complaint by complaint.
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.
