CBI Busts Rs 1,000 Crore Cyber Fraud Involving 4 Foreigners, 111 Shell Firms

Misleading loan applications, bogus investment schemes, false part-time job offers, and fraudulent online gaming platforms are key tools to defrauding thousands of people across the country, reveals the latest international cyber fraud network busted by the Central Bureau of Investigation (CBI).

The investigation agency has filed a chargesheet against 17 people, including four foreign nationals and 58 companies involved in transnational cybercrime. Three main accused in this case were arrested earlier in October.

The network was defrauding people through Ponzi schemes and Multi-Level Marketing (MLM) models, along with fraudulent apps and job offers.

CBI Busts Cyber Fraud Network

The case was registered based on information received from the Indian Cyber Crime Coordination Centre under the Ministry of Home Affairs, which flagged a surge in online investment and employment frauds.

Initially, the complaints appeared to be separate cases, but an in-depth analysis exposed a larger network using similar mobile applications, fund-flow patterns, payment gateways, and digital footprints.

The investigation also revealed that the cyber fraudsters employed a highly layered, technology-driven modus operandi, leveraging Google advertisements, bulk SMS campaigns, SIM-box messaging systems, cloud servers, fintech platforms and dozens of mule bank accounts to mask the identities of the real controllers and evade law enforcement scrutiny.

At the core of the operation were 111 shell companies, created using fake directors, forged documents, fake addresses and falsified business objectives. These entities enabled opening of bank accounts and payment gateways. 

The investigation revealed transfer of over Rs 1,000 crore through hundreds of bank accounts, with a single account receiving more than Rs 152 crore within a short period.

The CBI conducted searches at 27 locations across Karnataka, Tamil Nadu, Kerala, Andhra Pradesh, Jharkhand and Haryana and seized digital devices, documents and financial records. Forensic examination uncovered direct operational control by foreign nationals from abroad.

A UPI ID linked to two Indian accused remained active from a foreign location as late as August 2025, establishing real-time overseas supervision.

The probe identified the foreign handlers as Zou Yi, Huan Liu, Weijian Liu and Guanhua Wang, who allegedly orchestrated the incorporation of shell companies in India from 2020 onwards.

This action is part of the CBI's Operation CHAKRA-V, aimed at curbing organised and international cyber economic crimes in the country.