New Delhi, Dec 14
The Central Bureau of Investigation (CBI) has dismantled a large and well-organised transnational cyber fraud network and filed a charge sheet against 17 accused persons, including four foreign nationals, and 58 companies, officials said on Sunday.

The action follows an extensive investigation that uncovered a sophisticated digital and financial infrastructure used to cheat thousands of citizens across multiple states in India.

According to a CBI press release dated December 14, the accused were involved in running misleading loan applications, fake investment schemes, Ponzi and multi-level marketing (MLM) models, bogus part-time job offers and fraudulent online gaming platforms. “The investigation has revealed how a single coordinated syndicate created an extensive digital and financial infrastructure to defraud thousands of unsuspecting citizens,” the agency said.

The case was registered based on inputs received from the Indian Cyber Crime Coordination Centre (I4C) under the Ministry of Home Affairs, which indicated that large numbers of people were being cheated through online investment and employment schemes.

Although the complaints initially appeared to be isolated incidents, the CBI said detailed analysis revealed “striking similarities in applications used, fund-flow patterns, payment gateways and digital footprints, pointing towards a common organised conspiracy”.

The CBI further stated that the cyber criminals adopted a “highly layered and 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 of the operation -- from luring victims to collection and movement of funds -- was deliberately structured to conceal the identities of the actual controllers and evade detection by law enforcement agencies,” the release said.

Investigators uncovered the backbone of the fraud network, comprising 111 shell companies incorporated with dummy directors, forged or misleading documents, fake addresses, and false business objectives. These shell companies were used to open bank and merchant accounts, enabling rapid layering and diversion of the proceeds of crime.

Analysis of hundreds of bank accounts revealed that more than Rs 1,000 crore was routed through these accounts, with one account alone receiving over Rs 152 crore within a short span.

Searches were conducted at 27 locations across Karnataka, Tamil Nadu, Kerala, Andhra Pradesh, Jharkhand and Haryana, during which digital devices, documents and financial records were seized for forensic examination. The CBI said the analysis revealed “extensive communication links and operational control by foreign nationals directing the fraud network from abroad”.

Significantly, the agency found that a UPI ID linked to bank accounts of two Indian accused was active in a foreign location as late as August, “conclusively establishing continued foreign control and real-time operational oversight”.

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 help of Indian associates. The CBI has charge-sheeted the four foreign masterminds, their Indian associates and 58 companies under charges including criminal conspiracy, forgery, use of forged documents and provisions of the Banning of Unregulated Deposit Schemes Act, 2019.

“This case forms part of CBI’s sustained action under Operation CHAKRA-V against organised and transnational cyber-enabled financial crimes,” the agency said, adding that it remains committed to dismantling cybercrime infrastructure and safeguarding India’s digital economy.

CBI dismantles major transnational cyber fraud network; charge sheet filed against 17 accused, 58 companies