On Saturday, November 2, the Enforcement Directorate filed a fresh prosecution complaint in the rampant cybercrime called ‘Digital Arrest Scam’. ED registered a case in the scam after studying multiple police FIRs, and arrested eight persons named in its October 10 chargesheet.
The accused named in the ED chargesheet are Charan Raj C, Kiran S K, Shahi Kumar M, Sachin M, Tamilarasan, Prakash R, Ajith R, and Aravindan. Along with running the cyber scam, the accused also reportedly ran multiple shell companies. All the accused are currently in judicial custody.
Notably, ED’s fresh complaint came just a week after PM Narendra Modi warned about these cyber scams in the country during his ‘Mann Ki Baat’ address. During his address, PM Modi played a recorded example of a scam call to show how the scam is executed, and urged people to stay alert to such scams. The Prime Minister also emphasised that no genuine agency conducts inquiries over phone or video calls.
The case regarding this ‘Digital Arrest’ scam involves fraudulent transaction of money to the tune of ₹159 crore from various victims. The fraudsters obtained hundreds of SIM cards, allegedly linked to shell companies’ bank accounts, and also used these SIM cards to create fake WhatsApp accounts.
The ED also seized a lot of evidence, cheque books, and communication records, that indicates these individuals were part of a syndicate that laundered cybercrime proceeds from India.
What is Digital Arrest
‘Digital arrest’ is a method used by cybercriminals to confine victims to their houses to defraud them. The perpetrators create fear in the minds of internet users by making audio or video calls, often impersonating law enforcement agents with AI-generated voices or visual technology.
In most situations, the fraud starts with an apparently innocent phone call from a claimed courier firm, cellphone provider, telecom department, or bank. These calls can be either live or automated, urging the recipient to enter a number for more information. Once connected, the victim chats with someone professing to be a support agent, and the misery begins.
The fraudsters often have some personal information about the victim, such as Aadhaar (or the last four digits), PAN, or bank details. Using this information, they convince the victim that their Aadhaar, PAN, mobile number, or bank account has been linked to alleged illegal activities. The victim is then connected to individuals impersonating law enforcement officers from agencies like the police, customs, ED, or CBI, who conduct a fake interrogation over video conferencing and issue a bogus arrest warrant via call or WhatsApp.
A ‘Digital Arrest’ involves the virtual confinement of the victim, including restricted access to bank accounts and digital platforms, prevention of online activities, live monitoring through video calls, and periodic check-ins, all of which continue until the scammers extort money. The scam typically escalates by taking the victim to a fake virtual court via Skype while they are under ‘digital arrest.’ The victim is then persuaded to transfer their bank balance to another account for ‘verification,’ with promises that the funds will be returned within 30 minutes. Fake documents, including letters and receipts on counterfeit letterheads of various authorities, are issued to further deceive the victim.
