The Enforcement Directorate says its investigation into a Goa-based digital arrest scam has uncovered an alleged pan-India cyber fraud network involving losses of more than ₹400 crore and 330 victims. The agency has arrested Fahim Moin Hussain Sayed and Naim Mueen Sayyed under the Prevention of Money Laundering Act. Investigators are examining how alleged fraud proceeds moved through hundreds of beneficiary accounts before being withdrawn as cash and converted into foreign currency. The ED said an interconnected network of businesses handled banking transactions exceeding ₹27,850 crore.

ED Probe Reveals Rs 400-Crore Digital Arrest Racket; 330 Victims Trapped in Pan-India Fraud Network 

The Enforcement Directorate has arrested two persons in connection with a Goa-based digital arrest scam investigation. The officials said the investigation has uncovered a nationwide cyber fraud network with the cumulative loss of more than Rs 400 crore.

The ED digital arrest scam probe has unearthed a sprawling pan-India cyber fraud network, which has suffered losses of over Rs 400 crore and is linked to hundreds of complaints and criminal cases.

The Enforcement Directorate (ED) said it has arrested Fahim Moin Hussain Sayed and Naim Mueen Sayyed under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. Sunday saw the arrests of the two individuals, who were presented before a court in Goa on Monday.

The agency said the probe is based on a case registered with the Cyber Crime Police Station in Goa last year. Since then, the probe has snowballed into what officials say is a highly organized network of cyber fraud operators operating across multiple states and Union Territories.

The case is about a Goan woman being cheated of Rs 2.6 crore by transferring the amount between May 21, 2025 and June 2, 2025. The victim was forced to transfer money into accounts falsely identified as “secret supervision accounts,” investigators mentioned. 

Goa Digital Arrest Case Uncovers Nationwide Financial Network

The probe by the Enforcement Directorate has unearthed a systematic arrangement to transfer and conceal alleged stolen money, the agency said. The proceeds of the fraud were deposited by bank transfer and later withdrawn as cash and converted into foreign currency, the authorities said.

Officials claimed that companies holding Reserve Bank of India licence as full-fledged money changers were used during the conversion process. Investigators also claimed that some entities were registered in the names of people belonging to economically weaker sections.

The agency said it had directors who were low-wage workers, drivers and residents of single-room tenements. But investigators claimed the network’s principal architects retained de facto control of the company’s operations and bank accounts.

The investigation found that the victim’s money was quickly transferred through old and newly created bank accounts. Authorities said the money was then distributed to more than 400 beneficiary accounts in a short period.

The ED claimed that the money trail led to an interlinked ecosystem of commodity, trading, travel and foreign exchange businesses. Investigators cited findings that these entities collectively handled banking transactions of over Rs 27,850 crore.

Also Read: Xiaomi Xring O3 Chip to Use TSMC 3nm Process for Foldable Phone.

Related News: Fahim Sayed, Naim Sayyed Arrested in ₹30,000-Crore Cyber Fraud Probe.

The entities under scanner had deposited around Rs 2,904 crore in cash, officials said. The agency also said Rs 584.70 crore was deposited through 61,448 transactions of bulk note acceptance machines conducted at various locations.

According to the ED, bank accounts of these entities have been linked to 330 victim complaints and 163 FIRs registered across 20 states and Union Territories. The financial loss claimed in these cases was Rs 417.49 crore.

Investigators also point to a pattern that keeps repeating inside the network. In 101 complaints, money from one victim was allegedly channeled through two or more entities functioning as part of the same interconnected structure.

As part of the ongoing money laundering investigation, ED officials had searched more than 20 premises in Mumbai and Goa under Section 17 of the PMLA on July 17 and August 21.

Rs 3.25 crore in cash and digital devices, statutory registers and financial records were seized during the searches. Materials recovered are undergoing forensic examination, and investigators continue to trace financial flows, the agency said.

The case highlights the growing problem of sophisticated digital arrest scams and cyber-enabled financial crimes, according to Sprouts News. The Enforcement Directorate said the probe is on and there is scope for further investigation as forensic analysis and financial tracing of the case are underway.