ED arrests two from Tamil Nadu in Rs 400-crore pan India cyber fraud network

CHENNAI: The Directorate of Enforcement arrested two men from Tamil Nadu for their alleged involvement in a nationwide cyber fraud network that cheated more than 600 people of over Rs 400 crore through fake investment schemes, job offers and other online scams.

The arrested have been identified as Roshan Fiaz of Chennai and Ammar of Pudukkottai. According to the ED, the duo was part of an organised network that contacted victims through social media platforms and induced them to transfer large sums of money into mule bank accounts on the pretext of investment opportunities, share market returns, and job offers.

The money deposited in these accounts was split into smaller amounts and routed through multiple mule accounts. A portion of the proceeds was withdrawn in cash, while the remaining amount was transferred through cryptocurrency wallets, the central agency said.

The ED initiated its investigation based on two FIRs registered by the State Cyber Crime Command Centre of Tamil Nadu police and the Cyber Crime police station in Cyberabad, Telangana, under various provisions of the Bharatiya Nyaya Sanhita (BNS), 2023, the Indian Penal Code, and the Information Technology Act.

During the investigation, the agency identified 10 more FIRs registered in Telangana, Karnataka, and West Bengal that were linked to the same network. More than 600 complaints have been received against the network from across the country, with the estimated proceeds of crime exceeding Rs 400 crore.

The ED said Fiaz was the key operative who coordinated the diversion and layering of the proceeds through an extensive network of mule accounts before transferring the money into cryptocurrency.

Investigators found debit and credit transactions exceeding Rs 300 crore in 31 bank accounts operated in his name, his wife's name, and the names of entities controlled by him.

Ammar allegedly arranged mule bank accounts belonging to individuals and entities, and supplied their account kits, net-banking credentials, SIM cards, mobile phones, and email IDs to Fiaz. These accounts were used to receive money in Indian currency from cryptocurrency buyers, the agency said.

Earlier searches at locations linked to the accused and their associated entities led to the seizure of Rs 14.50 lakh in cash and cryptocurrency worth Rs 3.26 crore. The ED also froze Rs 88.28 lakh in multiple bank accounts.