In a massive punch to organized cybercrime in India, the Hyderabad City Police have carried out a massive crackdown, dubbed “Operation Octopus” that has cracked down extremely hard against a shadowy network stretching to 16 states. A whopping ₹127 crore has been stolen by the syndicate through multiple digital scams like “Digital Arrests” and fake investment schemes. The probe, which completed on today, led to the arrest of 104 persons and there are 1,055 reported cases nationwide.
A Coordinated Strike at Multiple States
Led by Hyderabad Police Commissioner V.C. Sajjanar, the department deployed 32 specialized teams to pursue suspects throughout India's subcontinent. The raids spanned a number of locations: Maharashtra, Delhi, Rajasthan, West Bengal, Karnataka, Uttar Pradesh, Gujarat and a few more.
The massive size of the operation underscores the increasing sophistication of cyber-syndicates that work across countries to avoid local police.
“Mule Account” Infrastructure
Central to this ₹127 crore fraud was a complex web of bank accounts utilized to launder the money stolen. Investigators found 151 bank accounts that served as conduits. The arrests included:
- 86 Mule Account Holders: People who gave fraudsters their bank details for small commission payments.
- 17 Account Aggregators: These accounts are collected and managed for the masterminds by middlemen.
- A Banking Insider: A Relationship Manager with one of the biggest private banks got busted for allegedly assisting the criminals in opening fraudulent accounts without proper vetting.
- Modus Operandi: Fear and Greed. And the syndicate mainly tapped these two psychological drivers: fear and greed.
The Digital Arrest Scams
This fraud involved pretending to be officials from the CBI, Narcotics Bureau or Customs and posing as someone from a government agency, claiming the identity of the victim was associated with illegal packages. They arranged for victims to be placed under “digital arrest” through video calls and require them to transfer funds in order to “verify.”
Investment Fraud
Participants were lured by social media with guarantees of high-return trading tips, only to see their capital vanish when they deposited their money in the syndicate’s mule accounts.
Evidence Seized
The police teams salvaged a major treasure trove of technical and financial evidence:
- Devices: 204 mobile phones and 26 laptops.
- Banking: 234 debit/credit cards and 152 bank passbooks.
- Forgeries: 56 corporate stamps used to manufacture fictitious shell companies.
- Cash: ₹36 lakh in liquid currency.
Police Advisory: The “1930” Helpline
Commissioner Sajjanar implored the public to be alert. He said that no government agency will ever again ask for money or interview suspects over a video call.
Key Tips: If you are a victim of cyber fraud, report it within the timeframe outlined as the “Golden Hour” (the first 2 hours), by calling 1930 or visiting cybercrime.gov.in. The only way to freeze the stolen funds before they are withdrawn is to report them in good time.
