"Hope My Story Serves As Warning": Ex-Banker Loses Rs 23 Crore In Digital Arrest

A 78-year-old former banker lost his entire life savings, approximately Rs 23 crore, to scammers through a "digital arrest" scheme, and now shares his story to warn others of similar dangers.

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Naresh Malhotra, the retired banking professional, was confined to his Delhi residence for over a month under what scammers called a 'digital arrest.' During this period, he was only permitted to leave his home to visit banks for withdrawing funds, which he then handed over to criminals impersonating officers from various investigative agencies.

"I dedicated my life to building financial security for my retirement. Within just one month, everything vanished because I placed my trust in deceitful individuals. I hope others can learn from my experience," he told PTI while struggling to control his emotions.

Delhi Police's Intelligence Fusion and Strategic Operations (IFSO) unit, which specializes in cybercrime investigations, has taken up the case. Authorities report they've successfully frozen Rs 2.67 crore of the defrauded amount across various bank accounts.

"Our investigation revealed that the stolen funds were distributed through multiple accounts and withdrawn from different locations across the country to avoid detection. The criminals utilized over 4,000 layered accounts to funnel the money," explained an officer familiar with the investigation. "We're confident we'll solve this case soon and apprehend those responsible," the officer added.

The ordeal began on August 1 when Malhotra, a resident of Gulmohar Park in South Delhi, received a call from someone claiming to represent a mobile service provider. The caller alleged that Malhotra's Aadhaar card had been used in Mumbai to obtain a connection supposedly linked to terrorism financing activities.

"They informed me that I needed to discuss the matter with Mumbai Police, and based on their decision, my connection would either continue or be terminated and reported," Malhotra explained.

Subsequently, he started receiving numerous calls from various numbers. Some callers claimed to be Mumbai Police officers, while others pretended to be from the Enforcement Directorate (ED) or the Central Bureau of Investigation (CBI). All communications contained threatening legal implications.

"As soon as I was connected with supposed police officials, they began intimidating me by claiming my Aadhaar was involved in terrorism financing, terrorist activities, and other serious offenses," he recounted.

The fraudsters informed the ex-banker that he was under "digital arrest," meaning he was under police surveillance and forbidden from leaving his residence. They required him to participate in video calls every two hours and instructed him to maintain complete secrecy about the situation.

The criminals also threatened to seize his passport and prohibited him from international travel.

Between August 1 and September 4, the scammers conducted 20 transactions, draining Rs 23 crore from Malhotra's three bank accounts.

Initially, the imposters inquired about his savings.

"They wanted information about my bank account balance. I disclosed having approximately Rs 14 lakh. They instructed me to transfer the entire amount to their account, assuring me it was merely for verification purposes," he recalled.

Malhotra stated that after each transfer, the scammers provided him with counterfeit RBI certificates. They promised the money would be returned and that an RBI nodal officer would contact him.

The fraudsters then questioned him about his investments in mutual funds, systematic investment plans (SIPs), and other assets. Malhotra was told that all his investments required verification under Bombay High Court guidelines.

"They claimed they would first verify 25 percent of my assets before proceeding with the remainder according to their protocol. They threatened to implicate my family members as co-accused in terrorism cases if I refused to comply," the former banker explained.

Under continuous intimidation, he visited three different banks, liquidated his investments, and transferred the proceeds to the provided account numbers. Each time, they issued more fraudulent certificates bearing the RBI's name and seal.

On September 14, the scammers made an additional demand, asking Malhotra to deposit another Rs 5 crore into a private bank account in West Bengal, supposedly in the name of the Supreme Court Registrar.

"They claimed this was the final requirement and that the Supreme Court was now overseeing the case. I refused to send the money and informed them I would deposit the amount directly with the Supreme Court. I also stated my intention to surrender at Hauz Khas Police Station," Malhotra said.

Following this confrontation, the calls abruptly ceased.

On September 19, after realizing he had been defrauded, Malhotra approached the police to report the crime.