Mumbai police arrest six in Rs 10 crore cyber fraud, uncover gold loan tactic to hide money trail

The Mumbai police have arrested six individuals for allegedly defrauding a senior executive of the INOX Group of over Rs 10 crore. During the investigation, authorities uncovered a method used by the accused to break the digital money trail: converting stolen funds into physical gold and then taking gold loans against it.

According to the police, the stolen money was immediately used to purchase gold from prominent jewellery showrooms in Uttar Pradesh, Bihar, West Bengal, Delhi, and Maharashtra. This unusual step was taken to sever the digital trail that law enforcement agencies typically rely on to trace illicit funds.

Senior Inspector Nandkumar Gopale of the South Region cyber police station explained that modern cybercriminals are aware of how cyber cells operate. They know that investigators can rapidly freeze and track funds moving through a series of compromised mule bank accounts. By converting the money into physical gold, the accused aimed to make it difficult for the police to follow the money.

The arrests were made after the police received a complaint from the INOX executive, who reported that he had been tricked into transferring large sums to accounts controlled by the fraudsters. The investigation revealed that the accused had used a network of mule accounts to receive and launder the money before converting it into gold.

This case highlights the evolving nature of cyber fraud and the need for law enforcement to adapt to new techniques used by criminals to hide their activities. The police have urged the public to exercise caution when dealing with online transactions and to report suspicious activity immediately.