Mangaluru: The Mangaluru City Cyber, Economic and Narcotics (CEN) Crime Police have uncovered a large-scale international investment fraud racket operating from Nepal and other foreign locations, arresting 11 Indian accused involved in cheating citizens across the country of hundreds of crores of rupees. Police said the network used fake investment platforms, cryptocurrency channels and mule bank accounts to siphon off funds from unsuspecting investors.
According to investigators, the racket was part of a wider cross-border cyber fraud network comprising 16 Indians and several Chinese nationals. While Mangaluru CEN Police arrested 11 Indian accused, Nepal Police have taken Chinese nationals linked to the operation into custody. Five Indian suspects are still absconding, and search operations are underway to trace them.
Hundreds of bank accounts and thousands of complaints linked
During the probe, police conducted a detailed forensic examination of mobile phones and laptops seized from the accused. Investigators uncovered data relating to 624 bank accounts allegedly used to route fraud proceeds. These accounts have been linked to more than 4,580 complaints registered on the National Cyber Crime Reporting Portal (NCRP) from victims across India.
Police revealed that in just one of the identified accounts, transactions worth Rs 167 crore were recorded. In the specific case registered at Mangaluru CEN Police Station, fraudsters routed around Rs 30.70 crore through 10 bank accounts. Authorities are continuing to collect and verify transaction details connected to the remaining accounts.
In these 10 accounts alone, officials found links to 128 complaints and 36 FIRs registered in different parts of the country, indicating the organised and repeated nature of the fraud.
Case registered under IT Act and Bharatiya Nyaya Sanhita
The present case was registered after a complainant was cheated of Rs 1.38 crore, which was transferred into 10 separate bank accounts controlled by the fraud network. Based on technical evidence and money trail analysis, police confirmed that key parts of the operation were run from Nepal.
An FIR has been registered under Sections 66(c) and 66(d) of the Information Technology Act relating to identity theft and cheating by personation using computer resources, along with Sections 318(4) and 308(5) of the Bharatiya Nyaya Sanhita covering cheating and organised criminal activity.
Modus operandi involved crypto conversion and foreign handlers
Police said the fraud network functioned through multiple specialised groups operating from Nepal, Cambodia, Dubai and other foreign locations.
One unit based in Nepal focused on recruiting bank account holders and financial agents through Instagram, Telegram and other social media platforms. Fraud proceeds were layered through multiple accounts and later converted into USDT cryptocurrency, which was then transferred to foreign controllers on a daily basis.
Another group, operating from Cambodia and other countries, contacted Indian citizens through WhatsApp and social media, offering high-return investment opportunities. Indians working abroad were recruited to speak with victims in regional languages, increasing trust and conversion rates.
Fake investment apps and dashboards were used to display fabricated profits initially. Once victims gained confidence, they were persuaded to invest larger sums to “unlock” withdrawals or higher returns. After receiving substantial deposits, the operators cut off contact, resulting in heavy losses for investors.
Police estimate the syndicate may have been cheating Indian victims of Rs 60 lakh to Rs 1 crore per day through various investment scam formats.
Bank account mule recruitment through fake job offers
Investigators also highlighted how fraudsters procure bank accounts and SIM cards. Using fake company identities, they post advertisements seeking corporate and current accounts, USDT exchange operators, OTP handlers and account managers.
Recruited individuals are offered 5–10 per cent commission, along with promises of flight tickets, hotel stays and local transport. Many are taken to Nepal or Dubai, where their SIM cards and bank credentials are taken over and used to operate net banking and authorise fund transfers.
Police warned that individuals who provide bank accounts for commission will be treated as co-accused and may face arrest before the main foreign-based operators.
Warning on digital slavery and job scam traps
Authorities also issued a caution regarding what they described as “digital slavery”. Young job seekers are being lured abroad through fake overseas job offers and travel agents. Once they reach foreign countries on tourist visas, their passports are allegedly confiscated and they are forced to participate in cyber fraud operations targeting people from their home states.
In Dakshina Kannada district alone, six such victims have been rescued, and cases have been registered based on their statements.
Seizures and continuing investigation
Police have seized multiple laptops, mobile phones, SIM cards, debit cards and credit cards from the arrested accused. Digital evidence is being analysed to identify further victims, financial channels and foreign handlers linked to the racket.
Officials said coordination with national and international agencies is ongoing, and further arrests are likely as the investigation expands. Citizens have been urged to avoid unknown investment offers on social media and to verify platforms before transferring funds.