Ex-Banker Duped of ₹23 Crore in ‘Digital Arrest’ Scam: A Wake-Up Call for Cybersecurity

A 78-year-old retired banker from Delhi, Naresh Malhotra, has become the latest victim of a sophisticated cyber scam, losing his entire life savings of ₹23 crore. Over a span of 47 days, from August 1 to September 4, Malhotra was manipulated into transferring large sums of money to fraudsters posing as officials from the Enforcement Directorate (ED) and Central Bureau of Investigation (CBI). This incident is being regarded as one of the most significant cyber fraud cases in India.

The Modus Operandi

The scam began when Malhotra received a call from an individual claiming to be a Mumbai Police officer, informing him that his Aadhar card had been used in connection with a terror funding case. Subsequently, he was contacted by individuals impersonating ED and CBI officials, who informed him that he was under investigation and would be arrested unless he cooperated. They instructed him to transfer funds to various accounts to “secure” his release and avoid legal consequences. Over the course of the next month, Malhotra complied with their demands, transferring ₹23 crore across 20 transactions. Each time, he was provided with fake Reserve Bank of India (RBI) certificates as proof of the transactions.

Psychological Manipulation

The fraudsters employed psychological tactics to maintain control over Malhotra. They confined him to his home, warning him not to speak to anyone and claiming he was under constant surveillance. This isolation and the constant pressure led Malhotra to believe that his compliance was the only way to avoid arrest and legal repercussions. It was only after the fraudsters ceased contact on September 4 that he realized he had been deceived.

Investigation and Recovery Efforts

Upon realizing the extent of the fraud, Malhotra reported the incident to the Delhi Police on September 19. An FIR was registered the same day, and investigators began tracing the money trail. As of now, authorities have managed to freeze ₹2.67 crore of the defrauded amount in various bank accounts. The investigation is ongoing, with efforts to identify and apprehend the perpetrators.

Rising Threat of Digital Arrest Scams

Malhotra’s case highlights the growing threat of “digital arrest” scams, where cybercriminals impersonate law enforcement officials to extort money from victims. These scams prey on individuals’ fear of legal consequences and their trust in authority figures. Experts urge the public to be vigilant and skeptical of unsolicited calls or messages claiming to be from government agencies, especially those demanding immediate financial transactions.

Conclusion

Naresh Malhotra’s unfortunate experience serves as a stark reminder of the vulnerabilities individuals face in the digital age. It underscores the need for heightened awareness and education on cybersecurity, particularly among older adults who may be more susceptible to such scams. As digital fraud tactics become increasingly sophisticated, it is imperative for individuals to exercise caution and for authorities to enhance efforts in combating cybercrime.