US-Based Kochi Techie Trapped in Fake Case, Held Under 27-Day ‘Digital Arrest’, Loses INR 1.72 Crore
A 29-year-old software engineer based in California was defrauded of USD 178,916 (approximately INR 1.72 crore) after cybercriminals held him under a 27-day "digital arrest."
A 29-year-old software engineer based in California was defrauded of USD 178,916 (approximately INR 1.72 crore) after cybercriminals held him under a 27-day "digital arrest." Scammers impersonating law enforcement officers kept the techie under continuous online video surveillance and coerced him into transferring his savings into cryptocurrency wallets.
The victim, a native of Perumbavoor in Kerala’s Ernakulam district who works as a senior chip manufacturing engineer in the U.S., was first targeted in early July. Fraudsters contacted him using internet-routed numbers, claiming to represent the Indian Consulate and California law enforcement agencies. Digital Arrest Scam: Retired Army Colonel Duped of INR 15.50 Lakh as Delhi Police Busts Cyber-Fraud Network.
The callers alleged that an unauthorized bank account in Delhi had been opened using his credentials to process nearly ₹9 crore in illegal funds and carry out phishing scams. To resolve the fake legal case without returning to India, the scammers instructed the victim to submit to a live online "verification process."
For nearly four weeks—between July 8 and August 3—the engineer was instructed to remain inside his room under constant video surveillance via web apps. The perpetrators displayed counterfeit identity cards, forged court documents, and fake government seals. They warned him that disconnecting the feed or alerting anyone would lead to an immediate federal raid, passport cancellation, and imprisonment.
Exploiting his fear of legal exposure in the U.S., the scammers ordered the engineer to liquidate his cash reserves, company stock holdings, and personal investments. He was instructed to set up a new bank account and convert the funds into Bitcoin using the Strike mobile application. Over four separate transactions, the victim transferred 2.81 BTC to external cryptocurrency wallets provided by the fraudsters under the premise that the money would be audited and eventually returned. Fake Legal Threats, Video Surveillance, Secret Accounts: How a ‘Digital Arrest’ Scam Drained INR 2.60 Crore.
The scheme began to collapse when the cybercriminals demanded the engineer secure a ₹2-crore personal loan and submit details regarding his parents' real estate assets in Kerala. After his loan application failed due to un-updated credit records, the victim searched online for similar law enforcement impersonation cases and realized he was being scammed. He immediately lodged complaints with the Santa Clara Police Department and the FBI, after which the fraudsters ceased all contact and deleted their accounts.
The Ernakulam Rural Cyber Crime Police in Kerala have since registered an FIR based on a complaint submitted by the engineer’s family. Investigators are currently reviewing the cryptocurrency transaction hashes and wallet addresses to verify whether any local bank accounts or domestic handlers were involved in the transnational fraud.
(The above story first appeared on LatestLY on Sep 13, 2026 04:20 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
