Biggest digital arrest scam: 78-year-old banker loses Rs 23 cr savings in fake ED-CBI operation

New Delhi: Retired banker Naresh Malhotra had lost his entire life savings to his digital captors, by the time he refused to do their bidding and threatened to go to the police.

For more than a month, the 78-year-old was kept confined to his house under 'digital arrest,' and was let out only to make runs to his banks to shore up money and give it to the frauds who posed as ED and CBI officers.

By the time his ordeal ended, Malhotra had lost Rs 23 crore.

On August 1, Malhotra received a call from a man claiming to be from a mobile connection company. The caller told him that his Aadhaar card had been used in Mumbai to issue a connection allegedly linked to terror funding cases.

"They told me that I needed to talk to the Mumbai Police regarding the same matter and if they approved, the connection would continue, or else it would be disconnected and the matter reported," Malhotra told PTI.

The call was then diverted to people posing as Mumbai Police officers, who insisted on speaking over WhatsApp. "The moment I was connected with the police, they started pressuring me by saying that my Aadhaar had been used for terror funding, terror activities and many other serious offences," he said.

He said he was warned against revealing the matter to anyone, even his family members, for if he did, they would be counted as co-accused and sent behind the bars.

The imposters first asked him about his savings.

"They wanted to know how much money I had in my bank account. I told them I had almost Rs 14 lakh. They asked me to transfer the amount to their account, assuring me that it was only for verification," he recounted.

Malhotra said the scammers sent him forged RBI certificates after each transfer. He said he was told the money would be returned and that a nodal officer from RBI would contact him.  The people hiding behind the screen then became more greedy.

They probed how much money he had in his mutual funds, systematic investment plans (SIPs) and other assets.

Malhotra was told that all his investments would be verified under the guidelines of the Bombay High Court.

"They said they would first verify 25 per cent of my assets and then continue with the rest according to their system. They threatened me that if I didn't comply, they would make my family members co-accused in terror cases," the former banker said.

Under constant intimidation, he visited three different banks, liquidated his investments, and transferred the proceeds to account numbers he was given.  Each time, they issued him more forged certificates bearing the RBI's name and seal.

Through the entire stretch between August 1 and September 4, Malhotra was forbidden from stepping out of his house and was only allowed to visit the banks to liquidate money from his investments.

On September 14, the fraudsters made a fresh demand with another ruse.

They said the investigating officer of the Mumbai Police probing his case was compromised by terrorists, and asked Malhotra to deposit another Rs 5 crore in the name of the Registrar of the Supreme Court into a private bank account based in West Bengal.

"They told me this was the final step and that the Supreme Court was now monitoring the case. I refused to send the money and told them I would deposit the amount directly with the Supreme Court. I also said I would go to Hauz Khas Police Station and surrender," Malhotra said. After that, the calls abruptly stopped.

On September 19, having realised he had been defrauded, Malhotra approached the police.

"I spent my life savings building security for my old age. In one month, it all disappeared because I trusted the wrong people. I hope my story serves as a warning," he said, holding back tears.

The Intelligence Fusion and Strategic Operations (IFSO) unit of Delhi Police, which specialises in cyber fraud cases, is now investigating the matter.

Police said they have managed to freeze Rs 2.67 crore of the cheated amount in several bank accounts.

"The money trail revealed that the funds were layered across multiple accounts and withdrawn from different parts of the country to evade detection. Over 4,000 layered accounts were used to siphon off the funds," an officer privy to the investigation said. "We will crack the case soon and arrest those behind the scam," the officer asserted.