Digital Arrest' Scams: ED reveals eight-member gang's modus operandi; I4C issues fresh advisory

The Enforcement Directorate (ED) has exposed the operations of a cybercrime gang involved in 'digital arrest' scams, where proceeds of crime were transferred through “mule” accounts, converted into cryptocurrency, and sent abroad. The agency's latest prosecution complaint comes a week after Prime Minister Narendra Modi warned citizens about these scams in his 'Mann ki Baat' radio address.

Scam Details

The case, involving scams worth ₹159 crore, saw eight individuals arrested: Charan Raj C, Kiran S K, Shahi Kumar M, Sachin M, Tamilarasan, Prakash R, Ajith R, and Aravindan. These individuals managed 24 shell companies, used to launder money, and all are currently in judicial custody.

The scammers utilized hundreds of SIM cards linked to the bank accounts of these shell companies to create fake WhatsApp accounts. This method allowed them to maintain anonymity and reduce the risk of detection. The shell companies were registered at co-working space addresses and used fake bank statements for their filings with the Registrar of Companies.

Modus Operandi

According to the ED, the scammers operated mule accounts to transfer the crime proceeds, converting them into cryptocurrency, and transferring them abroad. They also collaborated with overseas scammers and helped in opening bank accounts for these shell companies.

Evidence and Advisory

The ED seized incriminating evidence, including cheque books and communication records, proving the syndicate's role in laundering cybercrime proceeds from India. The Indian Cyber Crime Coordination Centre (I4C) issued a public advisory urging people to beware of “Digital Arrest” scams. The advisory stressed that individuals making video calls are not police, CBI, customs officials, or judges.

Public Awareness

The Home Ministry's agency advised the public not to fall for these tricks and to report such crimes immediately by calling the National Cyber Crime Helpline at 1930 or logging onto www.cybercrime.gov.in. 'Digital arrest' scams typically involve fraudsters posing as law enforcement officials, targeting mainly senior citizens, and accusing them of serious financial crimes. Victims are put on video calls for 'interrogation' and coerced into transferring large sums of money as penalties.

Stay vigilant and report any suspicious activities to prevent falling victim to these scams.