MANGALURU: In a significant breakthrough, the Mangaluru City CCB Police have dismantled a massive international investment fraud network. Investigations revealed that the syndicate targeted Indian citizens through social media, laundering hundreds of crores of rupees via cryptocurrency.
Investigation Revelations: Examination of seized digital devices led to the detection of 624 bank accounts utilized by the fraudsters. Over 4,580 complaints have been registered against these accounts on the national NCRP portal. A staggering transaction volume of ₹167 crore was detected in just one of these accounts. In the specific case registered in Mangaluru, police identified that ₹30,70,26,725 was diverted through 10 bank accounts. Verification of the remaining 623 accounts is currently underway.
Case Details: The case (Crime No 02/2026) was registered under Sections 66(C) and 66(D) of the IT Act and Sections 318(4) and 308(5) of the Bharatiya Nyaya Sanhita. The complainant was swindled of ₹1.38 crore, which was funneled into 10 different accounts. Technical analysis confirmed that the operation was controlled from Nepal, leading to the subsequent arrests.
Operational Structure:
- Nepal-Based Hub: This group recruited bank account holders and agents through social media. They routed the stolen money through multiple layers before converting it into USDT (Cryptocurrency) to be moved abroad.
- Global Outreach: Another group based in Cambodia and other nations contacted investors. They specifically utilized Indians living abroad to communicate with victims in their local languages to build trust and persuade them to invest more. The entire financial pipeline was monitored and controlled by the group in Nepal.
How Bank Accounts Were Procured: Fraudsters published fake advertisements on platforms like Instagram and Telegram under various company names. They sought “Corporate Account” holders, “USDT-to-INR Exchange Operators,” and “OTP Workers.” Victims were enticed with 5% to 10% commissions, along with free flight tickets, cab bookings, and hotel stays. Once the victims reached Dubai or Nepal, their SIM cards were taken and inserted into devices controlled by the syndicate to facilitate seamless fund transfers via net banking.
How Investors Were Trapped: The primary accused, operating from Cambodia and Dubai, contacted Indians through unknown WhatsApp numbers and social media. They utilized fake apps to display inflated and artificial profits. Initially, victims were given small payouts to build credibility. Once trust was established, victims were coerced into investing larger sums, after which their funds were blocked. Police estimate the gang was looting between ₹60 lakh and ₹1 crore every single day.
Warning on Digital Slavery: Commissioner Reddy issued a stern warning to youth seeking foreign employment. He highlighted the rise of “Cyber Slavery,” where individuals are taken abroad on tourist visas, their passports are confiscated, and they are forced to work in scam centers. These victims are often denied proper food and contact with family while being forced to cheat their own countrymen. Six such individuals from Dakshina Kannada have already been rescued.
Challenges in Recovery & Police Advice:
- Crypto Laundering: Recovery is extremely difficult because funds are converted to cryptocurrency and moved offshore on the same day the fraud occurs.
- Account Holder Liability: Police warned that individuals providing their bank accounts for commission would also be treated as accused. In many cases, account providers are the first to be arrested while the kingpins remain abroad.
- Advice for Investors: Do not fall for online ads promising high returns, fake SEBI certificates, or fake demat accounts. Always invest through SEBI-registered institutions.
Cyber Fraud Safety Measures: Authorities urged the public to report frauds within the “Golden Hour” (one hour) by calling 1930. They also warned against fake loan apps, suspicious APK files, and “Digital Arrest” scams involving fake video calls from people impersonating CBI, Police, or Customs officials.
Arrested Accused:
- Makwan Vikram (25) – Gujarat
- Soumyaditya Chattopadhyay (21) – West Bengal
- Pupla Shiva Kumar Rao (32) – Jharkhand
- Gaurav Pandey (24) – Uttar Pradesh
- Harsh Mishra (22) – Uttar Pradesh
- Rajesh Mandan (30) – Jharkhand
- Mohammed Akeeb Ali (27) – Uttar Pradesh
- Rajeev Ranjan Kumar (30) – Bihar
- Mithun Kumar Mangaraj (38) – Jharkhand
- Naushad Ali (34) – Uttar Pradesh
- Om Prakash Yadav (37) – Rajasthan
Seized Items: The CCB seized one laptop, 21 mobile phones, 20 SIM cards, and 20 debit/credit cards. Further investigation is active to trace the remaining funds and associates.
