Bengaluru, India — In one of the largest reported “digital arrest” cyber fraud cases in India, the Central Crime Branch (CCB) of Bengaluru has arrested five interstate cybercriminals accused of extorting nearly ₹24 crore (approximately $2.9 million) from an elderly woman by threatening her with a fake money laundering investigation.
According to police officials, the victim, identified as Lakshmi, a resident of Shivajinagar in Bengaluru, had recently sold family properties and deposited a large amount of money into her bank accounts. Investigators believe the cybercriminals obtained detailed information about her financial assets before targeting her in a carefully planned fraud operation.
How the Scam Worked
Police said the accused contacted the elderly woman and falsely claimed that she was under investigation in a major money laundering case. The fraudsters allegedly posed as officials from law enforcement and investigative agencies, intimidating her through continuous phone and video calls.
The scammers reportedly placed the woman under what is commonly known in India as a “digital arrest” — a cyber fraud tactic in which victims are psychologically manipulated into believing they are under constant surveillance and legal scrutiny. Victims are often isolated, threatened with arrest, and pressured into transferring money to “verify” or “protect” their assets.
Fearing legal action and possible imprisonment, the woman transferred funds in multiple transactions between January and May 2026. Investigators said the total amount extorted reached nearly ₹24 crore.
Bank Manager’s Suspicion Exposed the Fraud
The fraud came to light only after the scammers allegedly demanded additional money from the victim.
In an attempt to arrange more funds, the woman visited a bank to mortgage approximately 1.3 kilograms of gold jewelry. Bank officials became suspicious after noticing repeated high-value transactions from her accounts over several months.
The branch manager immediately alerted the police.
Cybercrime officers arrived at the bank and questioned the woman. Initially, officials said, she was too frightened to reveal details of the scam. After police reassured her and explained the nature of cyber fraud operations, she disclosed that she had been under pressure from individuals claiming to be government investigators.
Authorities later informed her children, who currently live abroad, about the incident.
Five Arrested Across Multiple Cities
Taking the case seriously, the Bengaluru CCB launched a multi-city operation and arrested five suspects from Mumbai, Prayagraj (formerly इलाहाबाद), and Delhi.
Among those arrested are individuals identified as Gaurav Kumar and Om Prakash Rajput. Police said the fraud network had transferred the stolen money through 22 different bank accounts in an attempt to hide the financial trail.
Investigators have currently frozen one bank account containing approximately ₹60 lakh, while efforts are underway to trace and recover the remaining funds.
Officials believe the accused are part of a larger interstate cybercrime syndicate involved in sophisticated financial fraud operations targeting vulnerable individuals, particularly senior citizens.
Rise of ‘Digital Arrest’ Scams in India
Indian cybercrime authorities have reported a sharp rise in “digital arrest” scams over the past year. In such schemes, fraudsters impersonate officials from agencies such as the police, customs department, telecom authorities, or central investigative bodies.
Victims are often told that:
- Their bank accounts are linked to illegal activities,
- A parcel in their name contains drugs or illegal items,
- They are suspects in money laundering or tax evasion cases,
- Immediate payments are required to avoid arrest.
Experts say scammers use fear, isolation, and psychological pressure to manipulate victims into transferring large sums of money.
Cyber Safety Advisory
Police have urged citizens to remain cautious and remember:
- No legitimate government agency conducts investigations exclusively through video calls.
- Law enforcement agencies never demand money to “close” or “settle” cases.
- Personal documents and financial information should never be shared over unknown calls or social media platforms.
- Any suspicious cyber-related activity should immediately be reported to India’s National Cyber Crime Portal at or via the national cybercrime helpline number 1930.
Authorities continue to investigate the case and are working to identify additional members of the cyber fraud network.
