Multi-layer financial fraud syndicate busted in Delhi, 3 held

New Delhi, Oct 29 (PTI) A multi-layered financial fraud syndicate operating across Delhi-NCR has been busted with the arrest of three people, including a key account holder and two facilitators involved in laundering cheated funds through fraudulent POS transactions, police said on Wednesday.

The accused have been identified as Md Izhan, a resident of Jamia Nagar, and Manoj Kumar and Noor Hasan, both working at a fuel station in Sarita Vihar, they said.

The case came to light during an investigation into a cyber fraud case registered in South Delhi that was later transferred to the Crime Branch.

“During the first phase of the operation, on September 26, police traced a beneficiary account held by Izhan that had received Rs 6.8 lakh from the defrauded amount. Following a week-long surveillance, a decoy operation was launched, and Izhan was apprehended near Choudhary Dairy in Jamia Nagar,” a senior police officer said.

He allegedly admitted to opening the account at the behest of his associates, who remain absconding, and to conducting fraudulent POS-based cash withdrawals, police said.

Point of Sale (POS) transactions use credit or debit cards, mobile wallets, etc and may require a PIN entry on a keypad for security.

In the second phase, based on Izhan’s interrogation and analysis of transaction trails, the police identified two facilitators -- Manoj Kumar and Noor Hasan -- who allegedly converted digital fraud proceeds into cash by creating fake POS fuel sale transactions at the fuel station in Sarita Service.

Both were arrested on October 24 after extensive technical, financial, and digital analysis. The police recovered Rs 3.03 lakh, including Rs 2.13 lakh linked to the POS terminal in Sarita Vihar, from the accused.

Explaining the modus operandi, the police said the syndicate operated through layered structures -- the first layer involved opening bank accounts using compromised or incentivised individuals, while the second layer handled the cash conversion of the cheated funds through bogus POS transactions.

Further investigation is underway to trace the absconding associates and establish the complete money trail, police added. PTI SSJ RT