Retired Banker Loses Rs.23 Crore in Digital Arrest Scam

Delhi — India has seen one of its largest “digital arrest” scams after retired banker Naresh Malhotra of South Delhi’s Gulmohar Park was reportedly defrauded of nearly Rs.23 crore. The fraud, which unfolded over six weeks, used psychological pressure and fake law-enforcement narratives to trick the victim into transferring large sums.

A Carefully Orchestrated Deception

The scheme began on the evening of August 1 when Malhotra received a call from a woman who claimed to be from Airtel headquarters. She said his landline had been compromised and that bank accounts were opened in his name in Mumbai, allegedly linked to the Pulwama terror case involving Rs.1,300 crore. He was warned he could be arrested under the NIA Act, have property seized, and be transferred to Mumbai police custody.

Exploiting Trust to Steal Millions

Under the fake “digital arrest,” Malhotra was told he was under constant surveillance from August 1 until September 16. The fraudsters pressured him for personal and financial details, including bank accounts, fixed deposits, investments, locker information, and even details about family members and household staff. Following their instructions, he sold stocks and transferred proceeds into multiple accounts. In two phases the fraudsters moved about Rs.22.92 crore — first Rs.12.84 crore, then Rs.9.9 crore.

Expert Analysis

Professor Triveni Singh, a former IPS officer and cybercrime specialist, described the case as a disturbing example of how psychological manipulation now plays a central role in cyber fraud. He noted that fraudsters combine technology, legal pretext, and fear to create convincing narratives that can deceive even experienced individuals. He emphasised that vigilance and scepticism are key defences against such scams.

Cybercrime Unit Steps In

Malhotra eventually filed an online complaint. The Delhi Police IFSO cyber unit froze Rs.12.11 crore from accounts linked to the fraud. Investigators found that the stolen funds were spread across multiple accounts nationwide, and the probe is ongoing.

Broader Implications

The case highlights risks tied to India’s rapid digitalisation of payments and banking. Experts warn that social engineering scams are becoming more sophisticated and call for stronger safeguards, wider public awareness campaigns, and coordinated law-enforcement responses to protect citizens.