In a sweeping enforcement campaign, the Enforcement Directorate (ED) is investigating 234 cyber fraud cases involving fake apps, online scams and illegal crypto transactions, uncovering proceeds of crime totalling nearly ₹34,855 crore and tracing links to offshore channels, including China.
The agency has attached ₹12,229 crore in assets and arrested scores of suspects as part of its anti–money-laundering drive.
The ED’s ongoing investigation under the Prevention of Money Laundering Act (PMLA) encompasses a broad spectrum of cyber fraud schemes – from predatory loan apps and Ponzi investment traps to illegal gaming platforms, digital arrest scams and sophisticated phishing operations.
Officials say the total illicit gains identified so far are nearly ₹34,855 crore, of which over ₹12,229 crore worth of assets have been attached or frozen.
In its probe, the federal agency has filed 93 prosecution complaints in special courts and secured convictions in multiple cases, while 141 people have been arrested. Several accused remain in custody as investigations continue to map the extent of criminal networks.
A senior official associated with the probe, speaking on condition of anonymity, explained how fraud proceeds are generated and concealed: hundreds of shell companies and so-called “mule accounts” are set up to collect funds from victims, which are then layered through numerous transactions to obscure their origins. These funds are either used to buy assets domestically or remitted abroad through complex routes.
Crypto Channels and China Links in Focus
One of the most striking findings in the probe is the use of cryptocurrency to move funds internationally, particularly to China and other jurisdictions. ED sources revealed that intermediaries – often brokers convert large sums into crypto assets and funnel them across borders under the guise of foreign trade transactions, including under-invoiced imports or bogus service payments.
The agency said that in hundreds of cases, proceeds of crime were routed through digital currencies before being returned to India as foreign direct investment (FDI) or foreign portfolio investment (FPI) to hide their illicit origin. In the OctaFX case, around ₹17.75 crore was brought back as FDI, and in another case linked to an online book platform, ₹834 crore re-entered as FPI profits.
This transnational angle significantly complicates enforcement efforts, requiring cooperation with foreign regulators and enhanced crypto-forensic capabilities. Previous actions by the ED also saw the attachment of over ₹4,190 crore in crypto-linked cases and the designation of one accused as a Fugitive Economic Offender, signalling the agency’s intensified focus on this frontier.
Cyber Fraud Context: Rising Threats and Regional Patterns
The ED’s efforts come amid broader trends of escalating cybercrime. Municipal data from Mumbai show victims lost ₹155 crore to “digital arrest” and related scams alone, with a 33 per cent rise in losses year-on-year. Scams involve fraudsters impersonating law enforcement to pressure victims into transferring money.
Similarly, reports from Visakhapatnam indicate more than ₹12 crore lost to online fraud in just January 2026, driven by fake credit card offers, job scams and APK-based frauds targeting young professionals and senior citizens alike. Officials highlight the speed at which funds are siphoned off and the urgent need for timely reporting through the National Cybercrime Reporting Portal (NCRP).
These accounts underscore how pervasive and diverse cyber scams have become, exploiting digital platforms, social media and messaging apps to lure victims with promises of high returns or fake legal threats.
Government and Enforcement Statements
While the ED has not released a full official press note on the latest 234-case probe, officers involved in the investigation outlined the scale and methodology used by fraud syndicates. “Proceeds of crime are gathered through various fraudulent activities like bogus forex trading apps, illegal betting platforms, and impersonation frauds,” said one official, pointing to the widespread and lucrative nature of these digital traps.
Separately, at a nationwide cybercrime conference, Union Home Minister Amit Shah highlighted the government’s push toward real-time fraud detection tools and interagency collaboration. He noted that banks have already blocked thousands of fraudulent accounts and SIM cards linked to financial fraud, and stressed the integration of banking systems with cybercrime coordination mechanisms to strengthen oversight.
Why This Matters: The Human Toll and Systemic Risks
The rising tide of cyber fraud is not just a law-enforcement challenge it exacts real economic and psychological costs on ordinary citizens. Victims range from working professionals to retirees, tricked into investing life savings or coerced into transferring funds under duress. These crimes erode trust in digital systems and strain families’ financial security.
The use of shell companies, mule accounts and cross-border crypto channels highlights weaknesses in financial surveillance and underscores the need for stronger preventative safeguards. As digital finance expands, regulatory and investigative agencies face the twin tasks of protecting innovation while closing loopholes exploited by criminals.
The Logical Indian’s Perspective
The ED’s latest cybercrime probe reflects both the promise and peril of our rapidly digitising world. Digital technology has empowered millions, expanded financial inclusion and created new opportunities.
Yet, as these investigations show, the same systems can be manipulated by networks driven by greed and dishonesty – with devastating consequences for unsuspecting users.
True progress calls not just for enforcement and extradition, but for collective resilience and informed participation. Government agencies must continue building cross-border cooperation, digital platforms must strengthen user protections, and citizens must be equipped with awareness and safeguards to recognise and resist scams.
