New Delhi, 25 August (H.S.): The Enforcement Directorate (ED) has arrested two accused in the high-profile digital arrest cyber fraud case in Goa. The investigation has revealed that proceeds from the cyber fraud were initially converted into cash through bank accounts and subsequently exchanged into foreign currency through authorised money-changer companies. Cyber accounts linked to the network have been traced to 163 FIRs and 330 victim complaints registered across 20 states and Union Territories.

The ED’s Panaji Zonal Office arrested Faheem Moin Hussain Syed and Naeem Mueen Syed on August 23 under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. Both were produced before the Special PMLA Court in Goa on August 24, which remanded them to five days of ED custody until August 29.

The investigation was initiated on the basis of an FIR registered at the North Goa Cyber Crime Police Station concerning the alleged digital arrest of a woman from Goa. She was allegedly made to believe that she was under investigation. She was subsequently threatened and intimidated through video calls, with the accused allegedly claiming to keep her under continuous surveillance. Between May 21 and June 2, 2025, she was allegedly coerced into transferring more than Rs. 2.60 crore into a purported “secret supervision account”.

According to the ED, the proceeds of the fraud did not remain confined to the accused but were routed through an organised financial network. The money was initially transferred into a first layer of dormant and newly opened bank accounts and, within a short period, distributed among more than 400 beneficiary accounts. The funds were subsequently moved through various channels, including bank transfers, cash withdrawals, self-cheques and payment gateways.

The investigation has also traced the funds to an interconnected group of entities engaged in commodity trading, trading activities, travel services and foreign-exchange businesses. These entities conducted banking transactions worth more than Rs. 27,850 crore in total, including around Rs. 2,904 crore in cash deposits. Of particular significance, Rs. 584.70 crore was deposited through 61,448 separate transactions using “bulk note acceptance machines” located at different places.

The agency said the scale and manner of these cash deposits were inconsistent with normal business activity. Bank accounts belonging to these entities were found to be linked to 330 victim complaints and 163 FIRs registered across 20 states and Union Territories. The complaints collectively allege losses amounting to Rs. 417.49 crore.

According to the ED, in 101 complaints, the money allegedly defrauded from a single victim during the same fraud was transferred into the accounts of two or more entities belonging to the group. This has led the agency to suspect that the accounts were being used as a common collection mechanism rather than being operated independently by separate businesses.

The investigation further revealed that several companies used for routing the funds were registered in the names of individuals with extremely limited financial means. These included employees, drivers and people living in single-room houses. Although the documents showed them as directors of the companies, the ED alleged that control over the bank accounts and actual operations of the companies rested with other individuals.

The ED had earlier conducted searches at 20 premises in Mumbai and Goa on July 17 under Section 17 of the PMLA. Further searches were carried out at certain other premises on August 21. During these operations, Rs. 3.25 crore in cash was seized. Bank accounts belonging to the syndicate containing balances of more than Rs. 30 crore have also been frozen. Digital devices, account books, documents and statutory registers were seized and are currently being examined.

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Hindusthan Samachar / Jun Sarkar