A complaint filed by a woman in Goa after she lost more than Rs 2.6 crore in a so-called “digital arrest” scam has led the Enforcement Directorate (ED) to uncover a suspected money laundering network operating across multiple states.
According to investigators, the woman was allegedly kept on a continuous video call by fraudsters posing as investigators between May 21 and June 2, 2025. During this period, she transferred Rs 2,60,33,634 into accounts described by the scammers as “Secret Supervision Accounts”.
The investigation traced the money through dormant and newly opened bank accounts before it was allegedly split across more than 400 beneficiary accounts using bank transfers, cash withdrawals, self-cheques and payment gateways.
The ED said the trail eventually led to a network of commodity trading, travel and foreign exchange companies. Several of these entities reportedly held licences as Full Fledged Money Changers, allowing them to legally convert Indian currency into foreign exchange.
Rs 27,850 crore in banking transactions under scanner
According to the ED's investigation, the entities linked to the suspected network carried out banking transactions exceeding Rs 27,850 crore.
The agency found that nearly Rs 2,904 crore had been deposited in cash, including Rs 584.70 crore through Bulk Note Acceptance Machines across 61,448 transactions.
Investigators described the scale of cash handling as inconsistent with ordinary business operations.
330 victims, 163 FIRs across 20 states
The ED said the bank accounts linked to the network appeared in 330 victim complaints and 163 FIRs across 20 states and Union Territories.
The combined reported losses in these cases amounted to Rs 417.49 crore.
In 101 cases, money stolen from a single victim was allegedly routed through two or more entities connected to the same group, leading investigators to suspect that the companies were operating as part of a coordinated network rather than independently.
The ED also alleged that several companies were registered in the names of employees, drivers and other individuals who had little control over their operations, while the actual financial activities were allegedly managed by others.
ED raids Mumbai and Goa, arrests two accused
The ED conducted searches at 20 locations across Mumbai and Goa on July 17, followed by another round of searches on August 21.
During the operation, officials seized Rs 3.25 crore in cash and froze bank accounts containing more than Rs 30 crore. Digital devices, financial records and company documents were also seized for forensic examination.
On August 23, the ED arrested Fahim Moin Hussain Sayed and Naim Mueen Sayyed under the Prevention of Money Laundering Act. Both were produced before a Special PMLA Court in Goa and remanded to ED custody until August 29.
The investigation remains ongoing.
What is a digital arrest scam?
The ED has reiterated that no Indian law enforcement or investigating agency conducts an investigation by placing someone under a “digital arrest” over a video call.
Authorities do not ask citizens to transfer money into “supervision”, “verification” or “safe” accounts to prove their innocence.
Anyone receiving such a call should disconnect immediately and report the incident through the national cybercrime helpline 1930 or the official cybercrime reporting portal.
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