Three arrested in Rs 58 crore ‘digital arrest’ scam that duped Mumbai investor and wife

Maharashtra cyber police uncover massive con where fraudsters posed as ED, CBI officers; victims lost Rs 58 crore in fake money probe

In one of the biggest cyber fraud cases reported this year, the Maharashtra cyber police have arrested three men accused of helping scammers dupe a 72-year-old Mumbai-based stock market investor and his wife of Rs 58 crore by placing them under a so-called “digital arrest.”

According to a report by The Indian Express, investigators said the arrested men had allegedly provided their bank accounts to cyber fraudsters, allowing them to launder the stolen money across multiple states.

Fraudsters posed as ED and CBI officers

The complaint revealed that the victim first received a call on August 19 from individuals claiming to be officials from the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI).

They told the elderly investor that his bank account contained 'illegal money' and that he was being placed under digital arrest, a tactic where fraudsters convince victims to remain isolated while transferring funds under duress.

The scammers even sent forged documents to appear legitimate, according to the police, as reported by The Indian Express.

Victims transferred Rs 58 crore in two months

Between August 19 and October 8, the investor and his wife allegedly transferred Rs 58.13 crore through RTGS to multiple accounts provided by the fraudsters, who claimed the money would be 'verified' and returned.

Investigations later found that the funds were distributed across 18 bank accounts spread across Maharashtra and other states, making the money trail difficult to track.

Cyber police arrest three mule account holders

After tracing the money flow, the Maharashtra cyber police identified and arrested three account holders who had lent their bank accounts to the main fraudsters.

The accused were identified as:

Abdul Khulli (47), resident of Malad

Arjun Kadwasara (55), resident of Chira Bazaar

Jetharam (35), from Mumbai Central

Police described them as 'mule account holders,' people who knowingly or unknowingly allow their bank accounts to be used for transferring illegally obtained funds.

Hunt on for main masterminds

Investigators are now interrogating the arrested men to track down the main accused, believed to be part of a larger interstate cybercrime syndicate that has been targeting high-net-worth individuals using the digital arrest tactic.

The case adds to a growing list of sophisticated scams where fraudsters impersonate law enforcement agencies to manipulate victims into handing over their life savings.

What is a ‘digital arrest’?

A digital arrest is a psychological cybercrime tactic where scammers pose as government or police officials and tell victims they are being investigated for financial crimes. Victims are often isolated, monitored through video calls, and coerced into transferring money under the guise of “verification.”

Cybercrime officials have repeatedly warned the public not to trust unsolicited calls from individuals claiming to be from enforcement agencies and to verify identities through official channels.