CBI busts massive transnational cyber fraud racket; chargesheet against 17 accused, 58 shell firms

The Central Bureau of Investigation (CBI) has dismantled a large, well-organised transnational cyber fraud network and filed a chargesheet against 17 accused persons — including four foreign nationals — and 58 companies, officials said on Sunday.

The action follows an extensive probe that uncovered a sophisticated digital and financial ecosystem allegedly used to cheat thousands of citizens across multiple Indian states through a range of online frauds.

According to a CBI press release issued on December 14, the accused were involved in operating misleading loan applications, fake investment schemes, Ponzi and multi-level marketing (MLM) models, fraudulent part-time job offers, and bogus online gaming platforms.

The agency said the investigation revealed how a single, coordinated syndicate created an expansive digital and financial infrastructure to defraud unsuspecting victims on a massive scale.

The case was registered based on inputs from the Indian Cyber Crime Coordination Centre (I4C) under the Ministry of Home Affairs, which flagged a surge in complaints related to online investment and employment scams.

While the complaints initially appeared to be isolated, detailed analysis revealed striking similarities in the applications used, fund-flow patterns, payment gateways and digital footprints, pointing to an organised conspiracy, the CBI said.

Investigators found that the cyber criminals employed a highly layered, technology-driven modus operandi, using Google advertisements, bulk SMS campaigns, SIM-box-based messaging systems, cloud infrastructure, fintech platforms, and multiple mule bank accounts.

Each stage — from luring victims to collecting and moving funds — was deliberately structured to mask the identities of the actual controllers and evade law enforcement scrutiny.

The probe uncovered the backbone of the fraud network in the form of 111 shell companies incorporated using dummy directors, forged or misleading documents, fake addresses, and false business objectives.

These entities were used to open bank and merchant accounts to enable rapid layering and diversion of proceeds of crime.

An analysis of hundreds of bank accounts revealed that more than ₹1,000 crore was routed through these accounts, with one account alone receiving over ₹152 crore within a short period.

Searches were conducted at 27 locations across Karnataka, Tamil Nadu, Kerala, Andhra Pradesh, Jharkhand, and Haryana, leading to the seizure of digital devices, documents, and financial records for forensic examination.

The CBI said the evidence revealed extensive communication links and operational control exercised by foreign nationals from abroad.

Notably, investigators found that a UPI ID linked to bank accounts of two Indian accused was active in a foreign location as recently as August, conclusively establishing continued foreign control and real-time operational oversight of the fraud network.

The investigation established that from 2020 onwards, shell companies were incorporated in India at the instance of foreign handlers — Zou Yi, Huan Liu, Weijian Liu, and Guanhua Wang — with the assistance of Indian associates.

The four foreign masterminds, their Indian collaborator,s and 58 companies have been charge-sheeted under sections related to criminal conspiracy, forgery, use of forged documents and provisions of the Banning of Unregulated Deposit Schemes Act, 2019.

The CBI said the case is part of its sustained crackdown under Operation CHAKRA-V, aimed at dismantling organised and transnational cyber-enabled financial crime networks and safeguarding India’s digital economy.