Trading, Not Digital Arrest, Is New Modus Operandi Of Cybercriminals, Reveals MHA Data

Last Updated:March 03, 2026, 16:30 IST

Maharashtra, UP, and Rajasthan have emerged as the “illicit money parking hub”, data from the Indian Cyber Crime Coordination Centre reveals

Rows and rows of terminals with uniformed and plainclothes men and women peering into their computers. Huge screens with numbers, graphs, and charts changing by the second. A siren that goes off and holds everyone’s attention.

In the season of conflicts, this space could have been mistaken for a war room. Multi-agency officials are waging a war here, but an unconventional one—the war against cybercriminals.

The Cyber Fraud Mitigation Center (CFMC), a unique initiative by the Ministry of Home Affair (MHA)’s I4C (Indian Cyber Crime Coordination Centre) wing, has brought all stakeholders in the fight against cybercriminals under one roof.

Policemen from 16 states and Union Territories were seen seated together, tracking down complaints made by victims, and initiating action. Other states and UTs are expected on board soon, I4C’s director Nishant Kumar told CNN-News18.

Telecom service providers, aggregators, banks, and wallets are all represented under one roof for seamless coordination with one objective: track the money before it leaves the financial system to save victims of cyber fraud. Officials said e-commerce sites have also been onboarded since data suggests 53 per cent of cyber fraud money is being taken out through cheques and e-commerce sites.

“The golden hour is most crucial. Success rate goes up if we are informed within the hour. In case of digital arrest spanning days, the challenge is bigger, but we request victims to register a complaint on 1930 or cybercrime.gov.in as soon as they can," Badal Kaushik, director, I4C, told CNN-News18.

Trading, Not Digital Arrest Biggest Source Of Fraud

Analysis of numbers in the last one year has led I4C to the conclusion that cyber fraudster are using fake trading apps and websites to target victims most. “Greed and fear are two of the emotions fraudsters play on. Awareness initiatives have ensured that digital arrest cases are now seeing a decline. However, share market trading-related fake apps and sites are the new modus operandi," Kaushik said.

Officials pointed out to the case of a Punjab Police officer who shot himself after allegedly being conned by cybercriminals on a trading platform. A 12-page handwritten note found on the scene by local police alleged that the former IGP was cheated of Rs 8.1 crore in a highly sophisticated online investment fraud that operated through WhatsApp and Telegram under the name ‘F-777 DBS Wealth Equity Research Group’. It falsely claimed regulatory approvals and links with well-known financial institutions.

“Trading groups like these have members of the cyber gang who post testimonies of success to lure victims. Small amounts invested initially ensure handsome returns to gain confidence. Once bigger amount is committed, the fraudsters strike," Kumar explained. He added that AI-generated videos of domain experts or celebrities are also used to gain confidence that such trading platforms are genuine.

As per senior I4C officials, 70 per cent of the money lost in cybercrimes is now through fake trading platforms.

Maharashtra, UP & Rajasthan Report Maximum Mule Accounts

While cybercriminals create transaction layers to keep away law enforcers, one of their modus operandi is to use mule accounts to receive, transfer, or launder illicit funds.

Data analysis by I4C reveals that Maharashtra, UP and Rajasthan are the new hubs for such accounts. Nuh in Haryana, which was once considered a hub of cybercrime, has seen a drop but Haryana continues to be among the top 10 states, followed by Delhi, UT of Dadra and Nagar Haveli and Daman and Diu, Karnataka, Madhya Pradesh, Bihar and Tamil Nadu.

Jharkhand, infamous due to Jamtara, does not figure in the top 10 list.

A total of 350 mule accounts were detected in 2025 by agencies in Jharkhand. Officials said approximately Rs 7 crore was withdrawn from these accounts using ATMs and cheques, while an additional Rs 3.8 crore was routed through them. Nearly 5,000 ATM IDs and more than 20 cheque transactions linked to fraud were reported.

Similarly, in Haryana’s Nuh, authorities detected over 1,000 mule accounts in 2025. These accounts recorded withdrawals amounting to Rs 18 crore. Around Rs 0.8 crore was routed through these accounts in the first layer of transactions, with more than 1,400 ATM IDs and 75 cheque transactions.

Probe suggests cybercriminals deposit fraudulently obtained money into a mule account. The account holder is then instructed to transfer the funds to other accounts, withdraw cash through ATMs, or route the amount through cheques, often in exchange for a small commission. In many cases, victims are lured through fake job offers, “work from home" schemes, social media advertisements, or romance scams promising easy income for minimal effort. While some individuals are unaware they are facilitating illegal transactions, others knowingly participate for financial gain, risking severe legal consequences.

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