Digital Fraud Crackdown: Two Masterminds Arrested in Rs 33 Lakh Scam

The Enforcement Directorate arrested two individuals involved in defrauding a senior citizen in Chennai of Rs 33 lakh. The suspects, found in Kolkata and Delhi, managed mule accounts and converted illicit funds into cryptocurrency. Extensive investigations revealed significant lapses in KYC compliance by fintech companies.

The Enforcement Directorate (ED) has made significant strides in cracking down on digital fraud, with the arrest of two masterminds who allegedly extracted Rs 33 lakh from a senior citizen in Chennai. According to ED reports on Monday, the suspects, arrested in Kolkata and Delhi, played crucial roles in managing mule bank accounts and cryptocurrencies.

The arrests follow a First Information Report (FIR) filed by the victim with Chennai Police, leading to the ED's intensive investigation. The agency unraveled a complex network involving mule accounts and illicit fund transfers through cryptocurrency, culminating in transfers to suspected overseas entities.

In a sweeping move, the ED conducted raids across West Bengal, Madhya Pradesh, Uttar Pradesh, Gujarat, and Maharashtra, seizing a wealth of electronic evidence, including mobile devices and laptops. This investigation also highlights lapses in Know Your Customer (KYC) protocols by fintech companies, who are now under scrutiny for unknowingly facilitating these fraudulent transactions.

(With inputs from agencies.)