Fake Legal Threats, Video Surveillance, Secret Accounts: How a ‘Digital Arrest’ Scam Drained INR 2.60 Crore

The Enforcement Directorate (ED) has arrested three additional individuals, including a Chartered Accountant, under the Prevention of Money Laundering Act (PMLA) in connection with a major "digital arrest" cyber-fraud case originating in Goa. The latest arrests-identified as Bhushan Suryakant Moye, Vilas Narayan Pawar, and Shailesh Dagdu Chavan-bring the total number of individuals in custody to five as investigators expose a vast multi-crore money laundering network spanning multiple states.

Fresh Arrests Expand Multi-State Probe

The ED’s Panaji Zonal Office took the three suspects into custody on August 27 following extensive financial analysis and multi-city searches. Their arrests follow the earlier detention of key operatives Fahim Moin Hussain Sayed and Naim Mueen Sayyed on August 23. Investigators revealed that the arrested Chartered Accountant and operatives played a direct role in creating shell firms, managing complex banking channels, and assisting in converting cyber fraud proceeds into foreign currency. Phone Control, Threat, Video Calls: How Thane Youth Kept Nagpur Girl Under 'Digital Arrest' for 3 Months Before S*x Assault.

Origin of the Digital Arrest Racket

The probe stems from an FIR filed by the Cyber Crime Police Station in North Goa after a resident was defrauded of Rs 2.60 crore between May and June 2025. During the scam, fraudsters kept the victim under continuous video surveillance, convincing her that she was under "digital arrest" by legal authorities. Coerced into compliance, the victim transferred funds into multiple accounts under the false pretense of depositing them into official "Secret Supervision Accounts."

Massive INR 27,850 Crore Financial Web

An analysis of the fund trail revealed that the victim's money was fragmented within hours through nine primary conduit accounts, eventually dispersing across more than 400 mule accounts, payment gateways, and self-cheque withdrawals.

Tracing these transactions led law enforcement to an interconnected web of travel, commodity, and foreign exchange entities. According to the ED, these entities conducted banking transactions exceeding Rs 27,850 crore and deposited nearly Rs 2,904 crore in cash—including Rs 584.70 crore deposited through thousands of bulk note acceptance machine transactions nationwide. Maharashtra: No Such Thing as 'digital Arrest'; in Case of Cyber Fraud, Contact Helpline '1930' Immediately, Says CM Fadnavis.

The network used companies registered under the names of low-wage workers, drivers, and tenement residents serving as nominal directors, while the actual operations were controlled by the syndicate. The illegally obtained funds were ultimately converted into foreign currency using entities holding RBI licenses as Full-Fledged Money Changers (FFMCs).

Pan-India Enforcement Action

Data cross-referenced with the Indian Cyber Crime Coordination Centre (I4C) links the syndicate's bank accounts to over 330 victim complaints and 163 FIRs across 20 states and Union Territories, accounting for reported losses of over Rs 417 crore nationwide.

During raids across 20 premises in Mumbai and Goa, federal agents seized Rs 3.25 crore in cash, along with statutory registers, digital devices, and financial books. Bank accounts holding balances exceeding Rs 30 crore have been frozen, with further recovery actions underway. Authorities continue to remind the public that official law enforcement agencies never issue "digital arrests" or request money transfers to private accounts.

(The above story first appeared on LatestLY on Aug 29, 2026 04:31 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).