A Mumbai-based metal trading company has allegedly lost ₹1.99 crore after cybercriminals impersonated the company’s director on WhatsApp and convinced an employee to transfer funds to a fraudulent bank account.

Mumbai Cyber Police have arrested one accused from Ahmedabad and managed to freeze nearly ₹1 crore before the entire amount could be withdrawn or moved through multiple accounts.

Fraudsters Used Director’s Photo on WhatsApp

According to police, the incident took place between June 21 and June 22 at a metal business located in the Lamington Road area of south Mumbai.

An employee reportedly received a WhatsApp message from a number displaying the company director’s photograph.

The sender claimed it was the director’s personal number and instructed the employee to urgently transfer ₹1.99 crore to another company’s bank account for an official business transaction.

Employee Transferred Funds Without Independent Verification

Believing the instruction to be genuine, the employee transferred the money without confirming the request through another communication channel.

Police said the fraud was discovered around 30 minutes later, when it became clear that the real director had neither sent the message nor authorised any such payment.

The company immediately contacted its banks and reported the matter to the National Cyber Crime Helpline 1930.

Nearly ₹1 Crore Frozen After Quick Reporting

Because the incident was reported quickly, cyber authorities were able to initiate financial interception measures.

Police said nearly ₹1 crore was frozen before the funds could be completely withdrawn or distributed across several accounts.

The case again shows how fast reporting can improve the chances of recovering or blocking stolen money.

Accused Arrested From Ahmedabad

During the investigation, Mumbai Cyber Police traced the financial trail and arrested 32-year-old Dhruv Jaiswal from Ahmedabad on July 1.

Investigators allege that his identity and banking details were used to open an account through which the fraud money was routed.

Police are now examining whether he directly participated in the scam or acted as part of a larger organised cyber fraud network.

Wider Network Under Investigation

Police are analysing bank records, mobile devices, digital communications and transaction trails to identify other people involved.

Investigators suspect that multiple individuals may have helped in opening fraudulent accounts, coordinating transfers and executing the WhatsApp impersonation.

Further arrests may follow as the probe progresses.

Companies Warned About Executive Impersonation Fraud

Police said the incident occurred just weeks after a cyber awareness session was conducted for companies connected with the Metal and Stainless Steel Merchant’s Association.

During the programme, officers had warned businesses about executive impersonation scams where fraudsters use senior officials’ profile photos on messaging platforms to push urgent payments.

Businesses should implement multi-level payment approvals, written maker-checker controls and independent call-back verification for every high-value transaction.

Professional bookkeeping services in india can help companies maintain transaction discipline, reconcile payments, detect unusual transfers and reduce the risk of employee-driven or impersonation-based payment fraud.

Conclusion

The ₹1.99 crore WhatsApp director impersonation scam shows how a single unverified message can trigger a major corporate financial loss.

For businesses, no high-value payment should be authorised only through WhatsApp, email or profile-photo-based identity. Every urgent payment instruction must be verified through an independent phone call, internal approval workflow or in-person confirmation.

Shunyatax Global Insight

Executive impersonation fraud succeeds because it exploits hierarchy and urgency. Employees often act quickly when they believe a senior official has issued a confidential or time-sensitive instruction.

Shunyatax Global believes every business should enforce strict payment approval systems, dual authorisation, call-back verification and daily reconciliation. Professional bookkeeping services in india can help create reliable payment records, detect abnormal fund movements and strengthen internal checks before a fraudulent transfer becomes irreversible.