Ex-Banker Loses Rs 23 Crore In ‘Digital Arrest’ Scam: Here’s What Happened, How To Stay Safe

Cases of “digital arrest” fraud are on the rise, and one such incident has now come to light involving a retired banker from Delhi who lost his life savings of nearly Rs 23 crore. Naresh Malhotra, 78, fell victim to a cyber fraud operation that lasted over a month. According to PTI, it all began on August 1 when Malhotra received a call from a man claiming to represent a mobile company. He was told that his Aadhaar card had been linked to terror funding in Mumbai. The call was then transferred to people posing as Mumbai Police officers, who warned him not to disclose the matter to anyone.

The fraudsters convinced him that his accounts needed verification and made him transfer Rs 14 lakh initially. Each time he sent money, the scammers sent back fake RBI certificates to maintain credibility. Over the next month, he was pressured into liquidating his mutual funds, SIPs, and other assets, eventually transferring Rs 23 crore. The criminals even threatened to implicate his family in terror cases if he didn’t comply.

On September 14, when the fraudsters asked for another Rs 5 crore in the name of the Supreme Court, Malhotra refused and realised he had been cheated. “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 told PTI.

Following his complaint, the Delhi Police’s Intelligence Fusion and Strategic Operations (IFSO) unit launched an investigation. So far, about Rs 2.67 crore has been frozen, though police revealed the funds were funneled through more than 4,000 layered accounts to evade detection.

How to Stay Safe from Digital Arrest Scams

1. Verify first: No police, court, or government body will ever demand money transfers over the phone.
2. Do not share details: Avoid revealing bank balances, OTPs, or personal information to unknown callers.
3. Look for red flags: Threats of arrest, terror cases, or family implications are classic scam tactics.
4. Reach out directly: If contacted, call official helplines or visit your local police station before acting.
5. Report immediately: Early reporting increases the chances of freezing funds.