Kanpur Police Bust Cyber Fraud Syndicate, Arrest Eight

Kanpur Police have successfully dismantled a high-tech cyber fraud syndicate, arresting eight individuals, including bank officials, involved in a Rs 125 crore scam using mule accounts and hawala transactions.

Kanpur Police on Thursday busted a high-tech cyber fraud syndicate and arrested its eight members, including five bank officials, for allegedly facilitating mule accounts and hawala transactions worth Rs 125 crore across the country, officials said.

The action was initiated after alerts received through the National Cybercrime Reporting Portal (NCRP), following which the Barra police uncovered a well-organised network involved in cyber fraud, 'digital arrest' scams and routing illicit funds through fake firms and trust accounts.

Cyber Fraud Syndicate's Nationwide Links

Police Commissioner Raghubir Lal said the gang handled proceeds from multiple cybercrimes nationwide, and its links have emerged in at least 17 such cases.

He said the probe has also connected the syndicate to a Rs 58 crore "digital arrest" fraud reported in Navi Mumbai around six months ago, with Rs 2.5 crore traced to a Kanpur-based bank account.

The alleged kingpin, Rajveer Singh Yadav, a resident of Barra, is absconding and is accused of arranging mule accounts and coordinating fund transfers, the police said.

Modus Operandi: Fake Firms and Mule Accounts

According to officials, one mule account operated by a delivery agent saw transactions worth Rs 67 crore in just three months through a fake firm named "Cisco Commerce India", while another account linked to a fictitious firm "Rajaram Traders" in Agra recorded transactions of Rs 53 crore within seven months.

Three accused, Sonu Sharma, Satish Pandey and Sahil Vishwakarma, were allegedly paid a 20 per cent commission for allowing their bank accounts to be used, the police said.

The syndicate is estimated to have siphoned off around Rs 125 crore within a few months, they added.

In a separate case, Rs 2.5 crore routed through a Kanpur resident's account was traced, of which Rs 98 lakh has been frozen. Police said the account holder was unaware of the transactions.

Bank Officials' Involvement and Investigation Details

Investigators said the gang lured people into opening bank accounts on the pretext of housing schemes, government benefits or industrial registrations. These accounts were then used to route fraudulent funds through multiple layers, including trust accounts and hawala channels.

A Karnataka-based trust also came under the scanner, with nearly Rs 30 crore routed through it. The racket followed a fixed commission structure, 20 per cent for intermediary trusts, 10 per cent for handlers, and 70 per cent passed on to the main fraudsters.

A key finding in the probe is the alleged involvement of bank officials. Those arrested include staff from private and small finance banks as well as an agent, the police said.

They allegedly tipped off fraudsters about impending account freezes, enabling rapid withdrawals, sometimes Rs 4-5 lakh per hour, before action could be taken.

The police said fake GST firms and trust accounts were opened with insider help to bypass transaction limits, while ATM cards and cheque books were diverted to fraudsters through manipulated delivery systems.

During the operation, police recovered 24 fake GST firms, 60 mule accounts, 24 SIM cards and nine mobile phones.

Efforts are underway to trace the absconding kingpin, whose last known location is near Chhattisgarh, the officials said.

The police have urged citizens to remain vigilant against cyber fraud and "digital arrest" scams and to report suspicious calls or transactions immediately for prompt action.