A shocking case of cyber fraud has emerged in the capital, with a retired banker losing Rs 22.92 crore to a sophisticated “digital arrest” scam. The incident, reported by The Indian Express, highlights the growing menace of cybercriminals posing as enforcement agencies to trap unsuspecting victims.
A Banker’s Life Turned Upside Down
For 78-year-old Naresh Malhotra, daily routines in his South Delhi neighbourhood of Gulmohar Park continued as usual: morning walks, adda with friends, and club visits. But behind this façade, Malhotra was under the control of fraudsters who convinced him his identity was linked to terror financing. For six weeks, he followed their instructions, making 21 transfers from three of his bank accounts into 16 others spread across the country.
“It is as if I was possessed and had lost all my senses; my thinking process was completely taken over by the scammers,” Malhotra told The Indian Express.
Between August 4 and September 4, he moved Rs 22.92 crore through RTGS transfers. The fraudsters allowed him to withdraw small sums only after seeking their “permission,” leaving him trapped in a psychological chokehold.
How The Money Trail Was Split
Investigators revealed the funds did not stop at 21 transactions. The money was broken down and layered through 4,236 transfers across seven levels, making recovery extremely difficult. According to Rajneesh Gupta, Joint Commissioner of Delhi Police’s IFSO unit, “We have seen money move in as many as 20 layers. The golden hour of immediately reporting the losses was lost in the case. This makes nabbing the scammers and freezing the funds difficult.”
So far, the police have managed to freeze Rs 2.67 crore, a small fraction of the stolen amount.
Breaking Free After Six Weeks
Malhotra, who retired in 2020 after nearly five decades in the banking sector, finally approached the police on September 19. That same day, an FIR was filed. He recalled how the fraudsters kept demanding more, with the last request being an additional Rs 5 crore transfer. This time, he refused.
“I told them I will not do a third party transfer. I put my foot down and said I would go to the Registrar of the Supreme Court and deposit Rs 5 crore but not to a private company. They threatened me with immediate arrest. I said arrest me. On my belligerence, they disconnected the phone and that was it…,” he said.
According to the FIR, the bulk of his money was drained from three banks: Rs 9.68 crore from Central Bank, Rs 8.34 crore from HDFC Bank, and Rs 4.90 crore from Kotak Mahindra Bank. Branch managers admitted they saw no warning signs since Malhotra himself carried out the transactions calmly, even sharing tea during the transfers.
Police Still Chasing the Trail
With most of Malhotra’s lifetime savings gone, Delhi Police face the uphill task of tracing thousands of digital footprints spread across multiple states. “Since this is only a portion of the stolen funds, we are far from satisfied, we have miles to go,” Gupta said.
The case stands as one of Delhi’s biggest “digital arrest” frauds to date, underscoring how cybercriminals are weaponising fear and authority to wipe out entire life savings.
