Nationwide CBI Crackdown: Digital Arrest Scam Worth ₹1.86 Crore Lands Three in Custody
(By Syed Ali Taher Abedi)
New Delhi | February 26, 2026: In a sweeping, multi-state enforcement operation, the Central Bureau of Investigation (CBI) has conducted coordinated searches across six states and arrested three key accused in a high-value “Digital Arrest” cyber-fraud case involving an estimated ₹1.86 crore, exposing a sophisticated, layered criminal network operating within and beyond India’s borders.
The case arises from the systematic defrauding of a senior citizen from Kottayam district, Kerala, through a digitally orchestrated scam. Using advanced digital forensic tools and financial trail reconstruction, investigators uncovered an intricate web of mule accounts, shell entities, SIM card fraud channels, and cryptocurrency-linked transactions—revealing a structured cyber-crime ecosystem with strong indicators of international linkages.
Acting on actionable intelligence, the CBI on 25.02.2026 launched synchronised search and arrest operations targeting two core pillars of the fraud architecture:
- Mule bank account networks, and
- Fraudulently procured SIM card supply chains.
Searches were conducted at multiple locations in Goa, Bengaluru (Karnataka), Palakkad (Kerala), Nagpur (Maharashtra), Hyderabad (Telangana) and Delhi, reflecting the geographically dispersed nature of the criminal infrastructure.
During the operation, investigators seized digital devices, debit cards, banking documents, SIM-related materials, and other incriminating evidence, all of which are currently undergoing detailed forensic examination and financial intelligence analysis.
Key Arrests in the Cyber-Fraud Chain
- A Mule Account Operator was arrested from a hotel in Goa, identified as a critical node in operating mule accounts and facilitating cryptocurrency transactions linked to the fraud. Multiple digital devices containing incriminating data were recovered from his possession.
- A Shell Company Operator was apprehended in Nagpur, accused of managing mule accounts through corporate shell structures to camouflage illicit financial flows. Investigators recovered a substantial cache of debit cards and digital devices from premises linked to him.
- A SIM Card Fraud Facilitator was arrested in Bengaluru, allegedly involved in the fraudulent procurement of SIM cards. He is accused of deceiving individuals by offering so-called “5G SIM upgrades”, misusing their KYC documents to activate SIM cards that were subsequently deployed in cyber-fraud operations believed to be controlled from overseas locations.
Systematic Dismantling of the “Digital Arrest” Ecosystem
Investigators have described the operation as a strategic strike against the enabling architecture of “Digital Arrest” scams—targeting not just individual perpetrators, but the financial, technological, and logistical scaffolding that sustains organised cyber-crime networks.
The investigation remains ongoing, with efforts underway to identify additional domestic and international collaborators, trace cross-border financial flows, and dismantle the wider cyber-fraud infrastructure that facilitates such crimes.
Officials stated that this operation marks a significant step in deconstructing organised digital crime syndicates, reaffirming the CBI’s commitment to aggressively prosecuting cyber-criminal networks, protecting vulnerable citizens, and safeguarding public confidence in India’s digital and financial systems.
