ED arrests two in Rs 30,000 crore digital arrest scam
The Enforcement Directorate (ED) has arrested two men for their alleged roles in a nationwide cyber fraud and digital arrest scam worth nearly Rs 30,000 crore. Fahim Moin Hussain Sayed and Naim Mueen Sayyed were taken into custody in Mumbai on Sunday under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. After their arrest, they were produced before a special PMLA court in Mumbai, which approved their transfer to Panaji, Goa, where the main case is being investigated.
The investigation began after a woman in Goa filed a complaint. Between May 21 and June 2 2025, she fell victim to a digital arrest scam and transferred Rs 2,60,33,634 to accounts called Secret Supervision Accounts. On June 9, 2025, the Cyber Crime Police Station in North Goa registered FIR No. 17/2025. Authorities said the money was quickly moved through several bank accounts, withdrawn as cash and converted into foreign currency by licensed RBI money changers.
This case revealed a much larger organised network. Investigators found that the bank accounts and companies involved were connected to about 330 complaints and 163 FIRs across 20 States and Union Territories. The total reported loss in these cases is Rs 417.49 crore. In 101 cases, funds from a single victim were sent to two or more companies within the same network.
Victims are estimated to have lost around Rs 4,000 crore. Transactions related to commodities, travel, and foreign exchange totalled over Rs 27,850 crore, with about Rs 2,904 crore deposited in cash. Of this, roughly Rs 584.70 crore was deposited through 61,448 transactions using Bulk Note Acceptance Machines at different locations.
Officials said these activities show a well-organised system for collecting, moving, and laundering money gained from cybercrime. On July 17, 2026, investigators visited 20 places in Mumbai and Goa pursuant to Section 17 of the PMLA; further searches were conducted at other locations on August 21. As a result of these operations, the agency seized approximately Rs 3.25 crore in cash, along with digital devices, documents, and official registers. Experts are examining the seized items.
One major finding was the use of shell or dummy companies. Many of these companies were set up in the names of people with modest backgrounds, such as drivers, employees, and those living in single-room homes, who were listed as directors. Although these individuals were official directors, others reportedly controlled the bank accounts and companies. The purpose of the layering process was to conceal the origin of the funds and to enable them to enter the financial system or to be sent overseas.
