ED Arrests Two in Mumbai Over Alleged ₹30,000-Crore Pan-India Cyber Fraud Network
Mumbai: The Enforcement Directorate (ED) has arrested two men in Mumbai as part of a major money-laundering investigation into an alleged nationwide cyber fraud and “digital arrest” network involving suspicious transactions estimated at around ₹30,000 crore.
The accused, identified as Fahim Moin Hussain Sayed and Naim Mueen Sayyed, were arrested in Mumbai on Sunday. They were later produced before a special Prevention of Money Laundering Act (PMLA) court in the city, which granted transit remand so that the ED could take them to Panaji, Goa, where the underlying case was registered.
The investigation reportedly began after a woman in Goa was allegedly targeted in a “digital arrest” scam between May and June 2025. Fraudsters allegedly convinced her that she was under investigation and forced her to transfer around ₹2.60 crore into accounts described as “Secret Supervision Accounts.”
As investigators followed the money trail, they allegedly found that the funds moved through multiple bank accounts before being withdrawn as cash. The money was then reportedly converted into foreign currency through RBI-licensed money changers, making it harder to trace the proceeds.
₹30,000 Crore in Suspected Transactions
According to investigators, the network may have handled approximately ₹27,000 crore through bank transactions, along with another ₹3,000 crore in cash dealings. However, the estimated amount actually defrauded from victims is reported to be around ₹4,000 crore.
The suspected network appears to be much larger than a single fraud case. Investigators have linked it to around 300 victim complaints and 150–160 FIRs across 20 states and Union Territories, highlighting the nationwide scale of the alleged operation.
Shell Companies and Mule Accounts Under Scanner
The ED is also examining the alleged use of shell and dummy companies to move and conceal the money. Investigators reportedly found entities whose listed directors included drivers and other employees living in modest single-room accommodations.
Such arrangements are suspected to have been used to create layers between the fraudsters and the money obtained from victims, making the financial trail more difficult to follow.
During searches conducted in Goa and Mumbai, the ED reportedly seized around ₹3.25 crore in cash as well as documents and other material linked to the investigation.
A Growing Threat of Digital Arrest Scams
The case highlights the growing threat posed by “digital arrest” scams, in which fraudsters impersonate police officers, government officials or other authorities and convince victims that they are involved in a criminal case.
Victims are often kept on prolonged phone or video calls and pressured into transferring money under the pretext of verification, investigation or avoiding arrest.
The latest ED action is part of a broader crackdown on cyber-enabled financial crimes in India, with agencies increasingly focusing on the networks that collect, move and launder money obtained through online fraud.
The investigation remains ongoing, and the ED is expected to examine the wider network, follow the money trail and identify other individuals and entities allegedly involved in the operation.
News source: Information for this article was gathered from a variety of reliable news outlets.
