The Enforcement Directorate (ED) found that individuals in Hong Kong and Thailand ran a cyber fraud and money laundering scheme with the help of associates in India in connection with digital arrest fraud case and cybercrime involving revenues worth 159 million lei.

These scammers worked with people in India to create digital signatures, set up shell companies and act as inactive directors to open bank accounts using fake documents sent via WhatsApp.

The central probe agency filed a case on October 10 in the special court under the Prevention of Money Laundering Act (PMLA) in Bengaluru. The special court in Bengaluru took cognizance of the charge sheet on October 29.

The charge sheet includes eight accused – Charan Raj C, Kiran SK, Shahi Kumar M, Sachin M, Tamilarasan, Prakash R, Ajith R and Aravindan – along with 24 related companies. All the accused are in judicial custody.

The ED probe followed several First Information Reports (FIRs) from various law enforcement agencies across the country reporting schemes where cyber fraudsters allegedly duped people with fake stock market investments and fake digital arrests, leading to victims to transfer funds to fictitious companies.

The ED findings show an organized cyber fraud network in the country, which allegedly used social media platforms like Facebook, Instagram, WhatsApp and Telegram.

Known as “pig butchering” scams, these schemes misled individuals with promises of high returns through fraudulent applications and stock market investments.

Fake law enforcement scenarios have also been used to coerce people into transferring money under false pretenses.

The central probe agency said fraudsters have created shell companies in all states, including Tamil Nadu and Karnataka, mostly registered in co-working spaces with no real business presence. False documents were allegedly submitted to the Companies Registry.

Many companies were used as “mule” accounts to transfer funds, later converted to cryptocurrencies and moved abroad. Key figures linked to the scam were linked to bank accounts and digital signatures used in shell companies.

Searches at the home of the accused led to the seizure of documents, check books and identification materials related to these shell companies.

The ED investigation also revealed that some persons operated WhatsApp groups to manage and authorize fraudulent transactions.

The probe agency has frozen Rs 2.81 crore in assets related to Cyberforest Technology Pvt Ltd and conducted 17 searches, recovering additional evidence across the country.