Police Trace Banking Fraud to Malware App Used to Steal OTPs

Trojan Trap Busted: Varanasi Police Smash Cyber Gang Using SMS-Forwarder APK To Loot Victims

The420 Web Desk
4 Min Read

VARANASI:   Police in Varanasi have arrested two alleged cybercriminals in West Bengal accused of orchestrating a banking fraud using malicious APK files designed to intercept SMS messages and gain access to victims’ financial accounts.

A Cyber Fraud Complaint Triggers Investigation

The investigation began earlier this year after a resident of Varanasi reported that funds had been siphoned from his bank account in what authorities described as a coordinated cyber fraud operation.

According to a press note issued by the Office of the Deputy Commissioner of Police (Crime), Varanasi Commissionerate, the complaint was filed on January 5, 2026, by Anup Gupta, a resident of Machhrahata in the Ramnagar police station area. Gupta alleged that cybercriminals had illegally accessed his bank account and withdrawn ₹8,38,402.

Following the complaint, a case was registered at the Cyber Crime Police Station in Varanasi under provisions of the Bharatiya Nyaya Sanhita and the Information Technology Act. The investigation was led by Inspector Udaybeer Singh. Senior officials, including Varanasi Police Commissioner Mohit Agarwal, directed a specialized team to pursue the investigation and identify those responsible.

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Arrests Made in West Bengal

During the course of the investigation, police relied on electronic surveillance and digital forensic analysis to trace the suspected perpetrators. Authorities ultimately tracked the suspects to Andal in West Bengal.

Police said two individuals were arrested near Andal railway station in the Paschim Bardhaman district. The suspects were identified as Nageshwar Mandal, approximately 30 years old, and Akshay Mandal, also known as Pintu, about 24 years old.

According to the press note, both individuals have links to Jharkhand’s Jamtara district, a region that has previously been associated with organized cyber fraud networks.

Authorities also reported recovering several devices and cash during the operation. The seized items included six iPhones, nine Android mobile phones, and ₹1,52,100 in cash believed to be connected to the alleged cybercrime activities.

Fraud Executed Through Malicious APK Files

Investigators said the suspects allegedly used Trojan-based applications and SMS forwarding malware to gain access to victims’ banking credentials.

According to the police account, the group first circulated forged digital flyers claiming to relate to banking services or traffic challan payments. These messages included links to fraudulent APK files that victims were encouraged to install on their smartphones.

Once installed, the application reportedly allowed the attackers to gain remote access to the victim’s device and intercept incoming SMS messages, including one-time passwords used for banking authentication.

Police said the suspects also deployed an SMS bombing technique, sending hundreds of messages to confuse victims while fraudulent banking transactions were carried out in the background. Stolen funds were allegedly routed through mule bank accounts arranged via Telegram bots and then withdrawn through cardless payment systems.

Investigation and Recovery Efforts Continue

Authorities said the arrested individuals are being questioned as part of the ongoing investigation, which aims to uncover additional participants in the fraud network and trace the flow of stolen funds.

Police records cited in the press note indicate that one of the accused, Nageshwar Mandal, has previously been named in a cybercrime case registered in Jharkhand in 2021 involving fraud and offenses under the Information Technology Act.

The arrests were carried out by a police team led by Inspector Udaybeer Singh and Inspector Shivakant Shukla, along with several other officers from the Varanasi cybercrime unit. Officials said the investigation remains active as authorities continue examining the digital devices recovered during the operation and identifying other potential victims linked to the network.

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