Mumbai Police Unveils Major Cyber Fraud Scheme, Arrests 12 Individuals Involved in ₹60 Crore Scam

Mumbai Police recently uncovered a major cyber fraud racket that has been operating across the country. In a significant breakthrough, 12 individuals, including a couple, have been arrested for their involvement in defrauding people of ₹60.82 crore. The arrests followed a thorough investigation by the Mumbai Crime Branch, which launched a raid on August 12. The raid targeted an office in Kandivali, where a large number of SIM cards and bank passbooks were recovered. These were the primary tools used by the fraudsters to carry out their illegal activities.

The Fraud Scheme and Arrests

According to the police, the arrested individuals were part of an elaborate scheme that used stolen or fraudulently acquired SIM cards and bank accounts to facilitate online fraud. The scheme involved duping individuals through digital arrest methods, online shopping scams, and fake share trading schemes. The authorities discovered that five individuals had sold their bank accounts and SIM cards to the fraudsters, making it easier for them to operate without getting caught.

The police carried out their first round of arrests on August 12, capturing five key members of the gang. During the investigation, additional suspects were apprehended, bringing the total number of arrests to 12. The criminals reportedly purchased around 943 bank accounts, out of which 180 accounts were actively used in the scam. The gang operated with considerable efficiency, having been active for over a year.

How the Fraudsters Operated

The fraudsters bought SIM cards and bank accounts at a rate of ₹7,000 to ₹8,000 per account. These were then used for various fraudulent activities, including conducting online shopping fraud, fake stock trading, and other forms of digital crime. The fraud was not limited to a single location but spanned across various states, including Mumbai, Maharashtra, and even reached parts of Delhi. The operation was both widespread and deeply embedded in the digital infrastructure of the country.

The police investigation revealed that the gang had used these illegally obtained bank accounts to siphon off money from unsuspecting victims. The stolen funds were then laundered through a complex web of transactions, making it difficult for authorities to trace the movement of money initially.

The Scale of the Scam

The total value of the scam amounted to a staggering ₹60.82 crore. According to reports, ₹1.67 crore of the total amount was swindled from people in Mumbai, while ₹10.57 crore came from other parts of Maharashtra. The rest of the money was extorted through various online platforms and transactions that involved fraudulent digital payments. The fraudsters targeted both individuals and businesses, exploiting the anonymity provided by digital transactions to carry out their illegal operations.

While Mumbai and Maharashtra were hit hardest, the fraud’s reach extended to Delhi, where a senior official from the Health Ministry fell victim to another scam. This particular case involved a self-proclaimed currency market investor, who promised high returns but ended up cheating the official of ₹31 lakh. The accused, identified as Prafull Bhat, had convinced the victim to invest in currency trading, assuring them of doubling their money. Bhat was known to the official, which led to the officer trusting him with the investment.

Investigation and Legal Action

Deputy Commissioner of Police Raj Tilak Roshan provided insights into the investigation, stating that the police had to carry out extensive operations to break the network. He emphasized the importance of dismantling such scams, which have become more prevalent in the digital age. The arrested suspects have been charged with multiple offenses under the Indian Penal Code and relevant sections of cybercrime laws.

The police have also been working closely with banks and telecom companies to track down any additional fraudsters involved in the scam. The authorities are now focused on investigating the flow of money, tracing any illicit gains, and ensuring that the perpetrators face stringent legal action.

Role of SIM Cards and Bank Accounts in the Fraud

One of the most crucial aspects of the scam was the use of SIM cards and bank accounts. The fraudsters purchased these accounts and SIM cards from various individuals, which allowed them to carry out fraudulent activities without directly involving themselves. Since the fraudsters did not have to use their own personal information, it was difficult for the authorities to trace them initially.

The police have stressed the importance of cracking down on the illegal sale of SIM cards and bank accounts, as this could significantly reduce the chances of future scams. As part of their efforts to prevent such crimes, the police are now working to educate the public about the risks of selling personal information and making them aware of the legal consequences that follow such actions.

Broader Impact of the Fraud

The impact of this cyber fraud racket has been felt not just by individual victims but also by the broader economy. The scam not only resulted in significant financial loss but also raised concerns about the vulnerability of the financial and digital systems in the country. With more and more people using online platforms for shopping, trading, and banking, cybercrime is becoming an increasingly serious threat.

Experts have warned that fraudsters will continue to exploit the digital world to their advantage unless stricter regulations and monitoring systems are put in place. The incident also highlights the need for more robust cybersecurity measures for businesses and individuals alike. Authorities are encouraging people to report any suspicious online activity immediately to prevent future frauds.

Police Efforts in Combatting Cybercrime

The Mumbai Crime Branch’s successful busting of this major fraud ring underscores the growing capabilities of the police in dealing with cybercrime. The police have assured the public that they will continue to monitor online fraud activities and take necessary actions to bring the perpetrators to justice. The authorities are also collaborating with tech companies, financial institutions, and other stakeholders to improve the security of digital transactions.

The rise of cybercrime and online fraud has made it imperative for law enforcement agencies to evolve and stay ahead of criminals who are constantly innovating new ways to exploit digital vulnerabilities. The case of this cyber fraud racket is a reminder of how sophisticated these scams have become and the importance of vigilance in safeguarding personal and financial data in the digital age.

The cyber fraud racket in Mumbai, which has defrauded people of ₹60.82 crore, serves as a stark reminder of the vulnerabilities in our digital systems. The police have made significant progress in arresting the criminals involved, but the case highlights the need for greater awareness and stricter regulations in the digital space. As technology advances, so too do the methods of cybercriminals. The public must stay informed and vigilant to protect themselves from becoming victims of such fraudulent schemes. The authorities, meanwhile, must continue to adapt to the changing landscape of cybercrime to ensure that justice is served and future frauds are prevented.

The actions taken by the police, along with the ongoing investigations, are steps in the right direction toward combating the growing threat of cybercrime. However, it is equally important for individuals and businesses to take necessary precautions to protect themselves from falling prey to similar scams in the future.