CBI Uncovers Massive Rs 1,000 Crore International Cyber Fraud Network Operating Through 111 Shell Companies

The Central Bureau of Investigation (CBI) has uncovered a massive international cyber fraud network that employed deceptive loan applications, fraudulent investment schemes, fake part-time job offers, and illegitimate online gaming platforms to swindle thousands of individuals across India.

CBI officials have filed charges against 17 individuals, including four foreign nationals, and 58 companies involved in this transnational cybercrime operation. Three primary suspects were previously apprehended in October.

The criminal network operated through Ponzi schemes and Multi-Level Marketing (MLM) models, alongside fraudulent applications and employment opportunities.

This investigation was initiated following information from the Indian Cyber Crime Coordination Centre under the Ministry of Home Affairs, which had detected an alarming increase in online investment and employment scams.

While complaints initially appeared unrelated, thorough analysis revealed an interconnected network utilizing similar mobile applications, fund-flow patterns, payment gateways, and digital footprints.

The investigation uncovered that these cyber criminals employed a sophisticated, layered, technology-driven methodology, utilizing Google advertisements, bulk SMS campaigns, SIM-box messaging systems, cloud servers, fintech platforms, and numerous mule bank accounts to conceal the identities of the actual controllers and evade detection by law enforcement.

Central to the operation were 111 shell companies established using fictitious directors, forged documentation, false addresses, and fabricated business objectives. These entities facilitated the opening of bank accounts and payment gateways.

The probe revealed transfers exceeding Rs 1,000 crore through hundreds of bank accounts, with a single account receiving more than Rs 152 crore within a brief timeframe.

The CBI conducted searches across 27 locations throughout Karnataka, Tamil Nadu, Kerala, Andhra Pradesh, Jharkhand, and Haryana, seizing digital devices, documents, and financial records. Forensic examination revealed direct operational control by foreign nationals from overseas.

A UPI ID connected to two Indian suspects remained operational from a foreign location as recently as August 2025, confirming real-time overseas supervision.

The investigation identified the foreign handlers as Zou Yi, Huan Liu, Weijian Liu, and Guanhua Wang, who allegedly orchestrated the establishment of shell companies in India from 2020 onward.

This enforcement action is part of the CBI's Operation CHAKRA-V, designed to combat organized and international cyber economic crimes throughout India.