Mangaluru City Cyber, Economic and Narcotics (CEN) Crime Police have arrested 11 accused involved in a large-scale investment fraud racket operated from Nepal, targeting Indian citizens and cheating them of hundreds of crores of rupees.
According to police, the accused were part of an international cyber fraud network comprising 16 Indians and several Chinese nationals. While 11 accused Indians have been arrested by Mangaluru CEN Police, Nepal Police have arrested the Chinese nationals involved. Five accused Indians are currently on the run, and efforts are underway to trace and arrest them.
During the investigation, police examined mobile phones and laptops seized from the accused and found details of 624 bank accounts. These accounts are linked to more than 4,580 complaints registered on the NCRP portal across the country. In one bank account alone, transactions worth Rs 167 crore were identified. In the present case registered at the CEN Police Station, about Rs 30.70 crore was transferred through 10 bank accounts used by the fraudsters. Details of the remaining 623 bank accounts are still being collected.
A case has been registered at Mangaluru CEN Police Station under Sections 66(c) and 66(d) of the IT Act and Sections 318(4) and 308(5) of the Bharatiya Nyaya Sanhita, the complainant was cheated of Rs 1.38 crore by transferring the money into 10 different bank accounts. Technical analysis and investigation confirmed that the fraud was carried out by the accused while operating from Nepal, leading to the arrest of the gang.
Police stated that one group of fraudsters operated from Nepal by recruiting bank account holders and agents through social media platforms. They transferred the cheated money through multiple accounts, converted it into USDT cryptocurrency, and then sent it abroad. Another group operated from Cambodia and other countries, contacting investors through social media and luring them with promises of high returns. Indians working abroad were used to communicating with victims in local languages. The Nepal-based team controlled the entire money flow.
In the 10 bank accounts used in this specific case, around 128 complaints and 36 FIRs have been registered nationwide on the NCRP portal.
Police also detailed how fraudsters procure bank accounts. Using fake company names, they advertise on Instagram and Telegram seeking corporate and current accounts, USDT-to-INR exchange operators, management operators, and OTP workers. Victims are promised commissions ranging from 5 to 10 per cent, along with flight tickets, cab bookings, and accommodation. They are lured to countries such as Dubai and Nepal, where their SIM cards are used in fraudsters' phones to operate net banking and move funds across accounts. The money is then converted into USDT and sent daily to foreign handlers.
Explaining the method used to trap investors, police said the main accused, operating from Cambodia and Dubai, contact Indian citizens through unknown WhatsApp numbers and social media platforms. Fake apps are used to show high returns initially to gain trust. Later, victims are persuaded to invest larger amounts to withdraw profits, resulting in huge losses. The gang is estimated to be cheating Indians of Rs 60 lakh to Rs 1 crore every day through investment fraud.
Police issued a strong warning about digital slavery, stating that young job seekers are lured abroad on tourist visas through fake job advertisements and agents. Their passports are confiscated, they are confined, and they are forced to scam innocent investors in their native languages. In Dakshina Kannada district alone, six such victims have already been rescued, and cases registered based on their complaints.
Police warned that those who provide bank accounts for commission will also be treated as accused and arrested before the main operators, who often manage the scams from abroad.
Details of the seized items, including laptops, mobile phones, SIM cards, and multiple debit and credit cards, have been documented as part of the investigation.
