A 78-year-old retired banker in Delhi lost ₹23 crore in a ‘digital arrest’ cyber scam after fraudsters posed as ED and CBI officials. Delhi Police have launched a probe and frozen ₹2.67 crore.
Case Summary
- Victim: 78-year-old retired banker, Naresh Malhotra, from Delhi.
- Scam Method: “Digital arrest” through fake police, ED, and CBI officers.
- Loss: Entire life savings of ₹23 crore siphoned off in 30 days.
- Tactics Used: Threats of terror-funding charges, Supreme Court monitoring claims.
- Police Action: Delhi Police’s IFSO unit froze ₹2.67 crore and are tracking layered accounts.
A Shocking Cyber Heist in Delhi
In one of the most alarming cyber fraud cases of the year, a 78-year-old retired banker from Delhi has lost his entire life savings of ₹23 crore in just one month. The victim, Naresh Malhotra, fell prey to a “digital arrest” scam, where fraudsters impersonated officials from the Enforcement Directorate (ED), Central Bureau of Investigation (CBI), and even claimed Supreme Court involvement.
The ordeal, which began on August 4, continued relentlessly for 30 days. By the time Malhotra realised he had been duped, the cybercriminals had disappeared, leaving behind a trail of layered bank accounts and shattered financial security.
How the Scam Began
The fraud started innocuously on August 1, when Malhotra received a call from a man claiming to represent a mobile connection company. He was told his Aadhaar card had been misused to activate a connection in Mumbai allegedly linked to terror funding.
The call was quickly escalated to supposed Mumbai Police officials on WhatsApp. That’s when the pressure campaign began.
“They said my Aadhaar had been used for terror activities. They warned that if I did not cooperate, my family would be booked as co-accused in terror cases,” Malhotra recalled.
Fearing repercussions, he complied. Initially, he was asked to transfer ₹14 lakh for “verification.” But the demands escalated into crores over the next few weeks.
The Trap of “Digital Arrest”
The cybercriminals confined Malhotra to his home under the pretext of investigation. He was instructed to stay indoors, answer only their calls, and leave the house solely to withdraw and transfer money. This form of psychological coercion is now known as digital arrest, where victims are virtually imprisoned through fear and manipulation.
To lend credibility, the fraudsters impersonated ED and CBI officials, even telling him the Supreme Court was monitoring his case. At one point, when he resisted, they threatened to implicate his family in terror funding cases.
Breaking Point
By September 4, after losing ₹23 crore, Malhotra refused to comply further. He told the fraudsters he would rather deposit the money directly with the Supreme Court or surrender at Hauz Khas Police Station. That was the last time they contacted him.
“I spent my life savings to secure my old age. In one month, it all disappeared because I trusted the wrong people. I hope my story warns others,” he said.
Delhi Police Investigation
On September 19, Malhotra reported the crime to Delhi Police. The case is now under the Intelligence Fusion & Strategic Operations (IFSO) unit, which specialises in cybercrime.
So far, police have managed to freeze ₹2.67 crore across multiple accounts. Investigators revealed that the money trail passed through over 4,000 layered bank accounts to obscure the final destination.
A senior officer assured:
“We are confident of cracking the case soon. The funds were withdrawn from different parts of the country, but we will track down the culprits.”
A Growing Threat
This case mirrors a disturbing rise in digital arrest scams across India. Fraudsters exploit fear of law enforcement to extort money, often targeting the elderly and financially secure. In another recent case, a man lost ₹19 crore in just 90 days.
Cyber experts warn that scammers are now leveraging WhatsApp, spoofed caller IDs, and fake verification processes to make their operations appear legitimate.
Protect Yourself from Digital Arrest Scams
- Verify calls: Always call back official helpline numbers of agencies like police, CBI, or ED.
- Never share money for “verification”: No government body asks for transfers to personal accounts.
- Avoid isolation: If pressured, immediately inform a trusted family member or local police.
- Report quickly: Early reporting can help police trace and freeze funds.
Conclusion
The shocking case of Naresh Malhotra is a grim reminder of how fear and trust can be weaponised by cybercriminals. For him, it was a devastating financial blow. For others, it’s a wake-up call.
Delhi Police are confident of cracking the case, but the broader fight against digital fraud syndicates continues. As technology advances, so does cybercrime—making vigilance, awareness, and quick action the strongest defence.