DH Insight | Behind a mask: A web of fear, fraud and cyber slavery

Although such arrests are non-existent as per the law, scammers have duped people into giving up an estimated Rs 2,140 crore between January and October 2024. The phenomenon started late last year but exploded early this year.

There is a striking commonality between Sukumar S, a retiree in Bengaluru and Abirami, a resident of Chennai. They are both victims of a new kind of cybercrime — the infamous ‘digital arrest’.

Sukumar (74) and Abirami (55), both of whose names have been changed to protect their identity, lost Rs 86.50 lakh and Rs 12 lakh respectively. The harrowing ordeal spanned over a week and involved both being confined to their homes during this time. 

A ‘digital arrest’ often involves cybercriminals impersonating officers of central agencies like the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED). The perpetrators often demand immediate payment, personal information, or compliance under the pretence of avoiding arrest, prosecution, or legal penalties, all while holding people under 'arrest', sometimes in their houses, places of work or in hotels. 

Although such arrests are non-existent as per the law, scammers have duped people into giving up an estimated Rs 2,140 crore between January and October 2024, according to media reports quoting the Indian Cybercrime Coordination Centre (I4C) under the Union Ministry of Home Affairs. The phenomenon started late last year but exploded early this year.

The scam gained attention after Prime Minister Narendra Modi spoke of it during his ‘Mann ki Baat’ radio broadcast in October.

“It struck me only after a few days that I was duped,” says Abirami. “It was meticulous. They instilled fear in me and made me part with my money. I had never heard the term digital arrest before I was duped. Now, I know what it means. The caller claimed he had an arrest warrant against me and I was scared,” she adds. 

Abirami is not alone. The Chennai Police say residents of the city have lost at least Rs 132 crore to such fraudsters in the last 12 months, despite massive awareness campaigns on digital arrests and cybercrimes. The situation is similar in other cities like Bengaluru, Hyderabad and Mumbai.

In Kashmir, digital arrest scams have been on the rise, exploiting the vulnerabilities of the local population. Cybercriminals, posing to be part of law enforcement agencies, have been targeting unsuspecting victims and extorting money. Given the region’s complex security environment, residents, especially those in remote areas, are more susceptible to such scams.

With limited access to awareness campaigns and a general mistrust of authority, many Kashmiris fall prey to these fraudulent tactics, leading to financial losses and emotional distress, further compounding the challenges they face in an already volatile landscape. These cybercrimes are often meticulously planned, and criminals are well-versed with technology and fluent in police terminology.

Up close and personal

On the afternoon of September 29, I received an automated call that seemed like it was a ‘digital arrest’ scam. Wanting to see how it played out, I remained on the call. The automated call said, “This is the Delhi High Court. A notice that is of regard to you has been sent to the Delhi RK Puram police department. For more details, press 1.” 

While this is one type of scam call, in other cases, automated calls from impersonators, mimicking calls from courier companies like FedEx, DHL and the Telecom Regulatory Authority of India (TRAI) have also become common.

Within seconds of pressing 1, the call was connected and the person on the other end introduced himself as Gaurav Shukla, the head constable of RK Puram station in Delhi. Wishing to not divulge my identity, I told him I was Rakesh Jain, a resident of Mumbai.

Shukla was calm and spoke English in a hard Delhi accent — which I was able to recognise, having worked there previously. Next, he told me that an ICICI bank account had been opened with my Aadhar card in New Delhi. The account, he said, was “used for illegal fund transactions”. If I did not undergo the judicial proceedings in the next two hours, all the money in my other account would be deducted.

I denied any involvement and Shukla began the questioning. He was surprisingly calm and firm, just as police often are, and started stressing that it was me who was partaking in illegal activities. After a few minutes of accusations and denials, Shukla jumped to the second step in his script.

He asked me if I had lost my Aadhar card. Wishing to see what was in store, I said that I had. Next, Shukla told me to report to the ‘Delhi Cybercrime Department’ as this was a case of impersonation. He made me note down a fictitious case number and other details. He made me read it back to him and the call was then transferred.

After a few rings, one Rajendra Kumar from the ‘Delhi Cybercrime Department’ picked up the phone. Once I briefed Kumar about the ‘case’, he began asking for my details. I told him I was 48, had worked in the US and returned to Mumbai about 10 years ago. 

“The crime is punishable by imprisonment and a fine,” said Kumar. He then told me that I would have to record a statement via Skype “proving my innocence” or else I would have to travel to Delhi. This was clearly designed to create a sense of urgency and was punctuated by the threat that all my bank accounts would be frozen immediately.

I agreed to record the statement and was told that I needed to be alone in a room as I was under 'digital arrest' and if anyone intervened, they would be treated as suspects. I agreed.

I was asked to download Skype and I deliberately delayed the process, but surprisingly Kumar was calm. As I could not log in to Skype, Kumar made the call on WhatsApp, without switching on his camera.

An hour had already passed since the ordeal began and I decided to try dropping the call. Immediately I received a call, asking what happened. When I told Kumar that, upon my wife’s insistence, I had decided to contact a lawyer, Kumar grew angry.

He told me that my wife and I would be arrested immediately and our bank accounts would be frozen and dropped the call. Surprisingly, the impersonators had not asked me for money. This was a clear indicator that the scam operated in layers and each would be uncovered depending on how the victim responded.

Money mules 

Digital arrests form just the tip of the iceberg of an organised, transnational cybercrime syndicate, involving human trafficking and cyber slavery.

Frequented by Indians looking for work, Dubai has emerged as a key transit point to launder the proceeds of cybercrimes, including digital arrests, says a senior cybercrime investigator in Bengaluru.

“The launderers mainly comprise Indians travelling to Dubai, Indians residing there and locals,” the officer said. “Through the hawala route and other ways, the money would be laundered at multiple levels, before it reaches kingpins, based mainly in China, Hong Kong, Myanmar, Thailand, Cambodia, Vietnam and now in Bangladesh. In some cases, the proceeds are converted to cryptocurrency in India and deposited into the digital wallets of the kingpins.”

Many times, ‘mules’, someone who receives and moves money that came from victims of fraud, are unaware of the crime. In other cases, they work on commission. The scammers also hire locals to operate bank accounts and use these conduits to launder money. The proceeds would be transferred to multiple bank accounts, obscuring the money trail.

One popular way involves ‘renting’ the bank accounts of individuals in remote areas, who are unaware of technology. Another method involves scammers contacting individuals to buy the entire bank account kit – along with the passbook, debit card etc.

“Contacts are generally initiated on social media marketplaces and chatrooms. Telegram and WhatsApp are also popular channels. Sometimes, the contact is also made via Facebook and Instagram. Everyone mostly works for a commission,” another senior police officer in Bengaluru said.  

There is also a constant inflow of SIM cards, purchased in India and transported to these southeast Asian countries. For instance, in May this year, a 55-year-old man from Visakhapatnam was arrested by the Bengaluru police for attempting to smuggle SIM cards to Cambodia to be used in cybercrimes.

“This, however, will come down drastically,” a senior cybercrime investigator in Karnataka said. “We have learnt that the cybercriminals are making virtual calls and through Voice over Internet Protocol (VoIP). One good thing is the Centre is constantly blocking fraudulent SIM cards with +91 code (India).”

Cyber slavery

Investigations by Central agencies have revealed that the Golden Triangle, a Special Economic Zone (SEZ) located at the intersection of Thailand, Laos and Myanmar has emerged as the den of cybercrimes and cyber slavery. According to the Office of the United Nations High Commissioner for Human Rights (OHCHR), the scam centres generate revenue amounting to billions of US dollars annually.

The region is also known for a slew of illegal activities like human trafficking and drug smuggling. Such activity has slowly spread to neighbouring countries like Vietnam and Cambodia. According to ED, Indians are lured under the pretext of jobs and trafficked to the Golden Triangle. They are exploited here for cyber fraud operations, forced to work in call centres or engage in online scams, under harsh and coercive conditions.

Krong Bavet, Sihanoukville, Krong Poi Pet in Cambodia, KK Park in Myanmar, house some well-known cybercrime dens, apart from the Golden Triangle, according to cybercrime investigators. In fact, there was a significant rise in cybercrime incidents targeting India, with about 45% originating from Cambodia, Myanmar, and Laos, according to data from the I4C.

That IT professionals from India were being forced to work for cybercrime networks in Myanmar came to the notice of the Government of India in 2022, when some Indian citizens trapped in Myawaddy sought help from New Delhi’s missions in Bangkok and Yangon.

Most victims of ‘cyber slavery’ had responded to online advertisements for jobs with lucrative salary packages and were recruited to work in Thailand, only to be trafficked illegally into Myanmar, detained in Shwe Kokko and other scam hubs in Myawaddy. They were then intimidated to be involved in phishing, hacking, online identity theft, ransomware attacks and cryptocurrency frauds. Many were even physically tortured when non-compliant or when they failed to meet targets. 

A new location, in the Hpa Lu area, in the south of Myawaddy, recently emerged as a cybercrime hub. This is where many Indian IT professionals are being trafficked to, via Thailand, Malaysia or the United Arab Emirates, according to the Embassy of India in Yangon.

Stephan Monthero (24) from Koppa in Chikkamagaluru and Stephen Wesley (30) from Tamil Nadu were both victims of cyber slavery in Cambodia and Myanmar. Monthero was just 22 when he was trafficked and Wesly was 28. Both left India, through agents, thinking they were hired for data entry jobs.

For around four months, he was held in a building with 13-foot compound walls with sensors. The building housed a Casino, a front to the outer world. Here, he was forced to con people.

“They are aided by Artificial Intelligence (AI), green rooms and modern equipment,” Monthero said. “We were given scripts based on the type of scam: investment trading scam, sextortion scam etc. Days, or in some cases, weeks are spent in gaining the victims’ confidence and then they are conned. There were also women there specifically for sextortion scams,” he added.

Monthero said that he had heard stories of torture and murder of those who opposed the bosses.

“There were muscular guards armed with batons, rope-launching guns and tasers. Dissidents would be beaten and tortured. We were completely monitored. We have heard of some who attempted to escape being reportedly murdered and then branded terrorists, leading to their home countries disowning them,” he added 

Monthero said that there were facilities including hotels, bars and hospitals located in these hubs, reducing the need for anyone to go out. “I was offered Rs 80,000 per month as salary. But they would levy fines based on several factors, including if the con did not go through or if the targets were not met. This would lead us to not earning even a meagre amount.” 

Wesley was trafficked to Myanmar after landing in Bangkok, Thailand, through a visa on arrival.

“The only training that was given to us was about methods to carry out scams. People who lose money to hackers do not even know they are being duped. The training was thorough and we could not refuse what they said,” Wesley said.

Many people who returned to India after being forced to carry out scams, said their only job was to arrest people digitally.

“We will be given all kinds of equipment and details. They would set targets and they would not give us food or salary if we did not meet these goals,” another person who came back to India said.

Lucrative salaries, geographical proximity, lack of awareness, and low wages in their hometowns push thousands from Tamil Nadu, Andhra Pradesh, and Telangana into such scams. According to police officers, some of the trafficked people were willingly engaging in scams due to the money on offer. 

About 650 and 548 Indians have been repatriated from Cambodia and Laos after being rescued from the clutches of the cybercrime syndicates until July this year.

The National Investigation Agency (NIA), in October, charged five people, who were operating the Ali International Services, which functioned as a front for human trafficking.

“The NIA investigations into the case found that though the company was originally registered in New Delhi, there was a well-organised network of traffickers and touts involved in various illegal activities,” the NIA said. 

The activity ranged from the operation of an unlicensed workforce supply agency to the illegal transfer of potential victims for criminal activities in southeast Asian countries. “The accused were directly involved in arranging flight tickets and documents, and in facilitating illegal border crossings with the help of contacts in the Golden Triangle,” the NIA added.

International cooperation 

Despite the state and the country’s efforts to bolster the police, senior officers believe their investigators still run into several hurdles. Delayed response by banks, which take a week on average to respond to subpoenas, is one of the key issues plaguing investigators.

“Their response is slow. They take time to comply with court orders in case of unfreezing money. Some banks even appeal against court orders and their nodal officers have no control when it comes to branches in other states,” says another cybercrime investigator.

“There is also a lack of inter-state police coordination. The Centre needs to take steps with other major powers to curb this menace. Another major problem is, when we seek information on foreign nationals who are suspects, social media firms deny it. We only end up having to cross red tape after red tape, which yields no actual result,” he said.  

Another senior police officer, who oversaw several cybercrime investigations in Karnataka, said: “The whole syndicate is run like a parallel economy. Unless there is intervention by the local government in that particular country, it is difficult to pluck the problem from its root.”

State police agencies regularly post on social media about cybercrimes, while banks and TRAI release periodic emails and text messages. But despite this, people continue to fall for the scams.

“We need to exercise common sense in some cases,” a police investigator said. “Just taking a deep breath and pausing would help the victim to think clearly. However, in some other cases, pure greed and avarice drive them to fall into the abyss,” he adds.

(With inputs from Anirban Bhaumik in New Delhi, Arjun Raghunath in Thiruvananthapuram, ETB Sivapriyan in Chennai, SNV Sudhir in Hyderabad and Zulfikar Majid in Srinagar)