Bengaluru police have uncovered an extensive cyber fraud network that used fake investment applications, hundreds of mule accounts, and cryptocurrency transfers to siphon off stolen money. The investigation was triggered by a complaint from a Peenya resident who lost approximately Rs. 94 lakh (Rs. 93.58 lakh) in a fraudulent investment scheme.
Officials traced the funds through 507 mule bank accounts, with Rs. 13 lakh moving through a government-owned bank account and over Rs. 38 lakh passing through a private bank current account. The trail also led to a Binance crypto wallet, indicating that digital assets were used to obscure the money flow. Investigators have identified digital connections to Kolkata, Hong Kong, and California, although foreign links are still being verified.
Arrests and Recovered Evidence
One suspect, Amit Mishra, was arrested in Bengaluru on September 8. The following day, police detained two alleged accomplices: Tausif Ahmed and Parashuram Sadanand Kannanavar. Six mobile phones were recovered from the three individuals. According to the official police statement: “Initially, we thought they could be victims, but on September 8, when the technical analysis of Amit Mishra was being done, we found they were his partners. We arrested both of them on September 9.”
Tools and Methods Used
The investigation revealed names such as Sumon, Nick, Dilawar, Iftikhar, Abhinav, and Vivekâcontacts of Mishra on the ZNPAY platform. Other associates included Nawaz, Shihab Boy, Dinesh, Sulpikar, and Ashraf. Police are verifying each individual’s involvement.
The group is accused of collecting current, corporate, and trust accounts along with SIM cards and banking details. Mule account holders were allegedly paid commissions ranging from Rs. 1.5 lakh to Rs. 2 lakh. Investigators also discovered the ZNPAY app and several SMS-forwarding APK files, which are believed to have been used to intercept banking messages and one-time passwords (OTPs).
Broader Implications
This case highlights a sophisticated, multi-layered fraud operation rather than a simple phishing attack. The fake investment platform lured victims, while mule accounts distributed stolen funds across different banks. The use of cryptocurrency added another layer of complexity, making transactions harder to track. Police continue to examine more accounts, devices, and digital trails as they expand the investigation.