Cyber fraud hits hard - ₹58 crore stolen in ‘Digital Arrest’ case

In one of the largest reported cyber frauds this year, a 72-year-old Mumbai businessman (Name undisclosed) was allegedly swindled of ₹58 crore by fraudsters posing as officials from the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI), police said on Thursday.

The Scam Unfolds

Between August 19 and October 8, the victim received multiple video calls from individuals claiming to be ED and CBI officers. They informed him that his name had surfaced in a money laundering investigation and placed him and his wife under a so-called "digital arrest." They coerced the businessman into transferring funds to various bank accounts, assuring him that the money would be returned after verification.

Over the course of two months, the victim transferred ₹58.13 crore through RTGS to at least 18 different bank accounts across Maharashtra and other states. The funds were allegedly laundered through "mule accounts" provided by accomplices, making the financial trail complex and difficult to trace.

Investigation and arrests

The Maharashtra Cyber Police initiated an investigation and arrested three individuals: Abdul Khulli (47) from Malad, Arjun Kadvasara (55), and his brother Jetharam Kadvasara (35) from Mumbai Central. These individuals are suspected of facilitating the scam by allowing their bank accounts to be used for transferring the illicit funds.

Wider trend of 'Digital Arrest' scams

This case highlights a troubling rise in 'digital arrest' scams across India. According to the National Cybercrime Reporting Portal, the number of reported digital arrest frauds nearly tripled between 2022 and 2024. A 2025 survey indicated that 79% of respondents had encountered such scams, underscoring the growing threat.

In a similar incident, a 78-year-old retired public sector employee in Hyderabad lost ₹1.1 crore to a digital arrest scam. Fraudsters impersonating officials from the Department of Telecommunications, Bengaluru Police, and CBI convinced him that his SIM card was misused in a human trafficking case. They pressured him into transferring funds over several days, using forged documents to appear legitimate.

Authorities' response

Cybersecurity experts and law enforcement agencies are urging the public to remain vigilant. They advise verifying the identity of callers, especially those claiming to be law enforcement officials, and to report any suspicious activities to the nearest police station or cybercrime cell. The Maharashtra Cyber Police continue to investigate the Mumbai case, working to trace the origin of the scam and identify any additional accomplices.