Indore Digital Arrest Scam Exposes Laos Cyber Hub

What began as a high-value “digital arrest” fraud against a 59-year-old businesswoman in Indore has opened a window into what police describe as a brutal, corporate-style cybercrime machine operating out of Laos’ Golden Triangle Special Economic Zone (GTSEZ).

Indore Crime Branch officers say the case has now grown far beyond a single ₹1.60 crore cheating incident. It has revealed an ecosystem of trafficked Indian workers, smuggled SIM cards and Chinese-controlled scam centres targeting victims across India and other countries.

How to a ₹1.60 Crore Digital Arrest Triggered the Probe

The investigation began when a 59-year-old woman from Indore received calls and video chats from people posing as officers of central agencies, including the CBI, ED, RBI and police.

Using the now-familiar “digital arrest” modus operandi, the callers:

• Accused her of involvement in money laundering
• Threatened criminal action unless she “cooperated”
• Kept her under virtual confinement through continuous Skype and WhatsApp video calls for several days
• Gradually forced her to transfer ₹1.60 crore from bank accounts, fixed deposits and equity holdings into accounts controlled by the gang

Digital arrest scams typically rely on impersonating law-enforcement or regulatory officials, placing victims under constant video surveillance and then coercing large transfers under the pretext of investigation or bail.

From Fake Job Offers to Cyber Slavery in Laos

The case took a dramatic turn when the Crime Branch arrested two men — Saurabh Singh from Vapi in Gujarat and Patras Kumar alias Kelis from Firozpur in Punjab. Their interrogation linked the Indore fraud directly to a cybercrime complex in Laos, specifically the Golden Triangle SEZ.

According to investigators and media reports:

• Both men say they were lured with promises of well-paid data-entry jobs in Thailand, then trafficked onward to Laos instead.
• Once inside the compound, their passports were taken and they were forced to work up to 18 hours a day running online scams.
• Those who missed targets or made mistakes were allegedly confined to dark rooms, bound, beaten and in some cases tortured with electric shocks or other physical punishments.

Police officials describe this as part of a broader pattern of “cyber slavery” in Southeast Asia, where trafficked workers are coerced into operating scam call centres and online fraud schemes targeting victims abroad.

In this case, investigators say one of the key figures identified by the accused is a Chinese national known as “Lizo”, alleged to be a top-tier handler within the Laos hub. His photograph has reportedly been circulated through central police portals for international identification.

350+ Indian SIM Cards, Targeted Victims and a Corporate Hierarchy

Information gathered so far points to a highly organised, almost corporate structure managing the Laos-based operation. Testimony from arrested suspects and police briefings suggest roles arranged in layers:

• Finders — scan social media and dating apps for vulnerable targets
• Chatters — build emotional or romantic connections with victims
• Team Leaders — supervise chatters and coordinate fraud scripts
• Directors — run multiple teams and monitor performance
• Bosses/Handlers — including foreign controllers such as the alleged Chinese handler “Lizo”

Before being trafficked, the accused helped build an Indian SIM supply chain:

• Over 350 SIM cards were procured under forged or misused identities and then smuggled to Laos.
• These Indian numbers allowed the Laos-based scammers to call victims from what appeared to be domestic phone lines, lowering suspicion.

On the victim side, the network reportedly focused on:

• Single or socially isolated women and men aged roughly 40–70
• People with stable income, savings or investments
• Profiles suggesting limited immediate family support

Targets were often approached via Instagram, Facebook and dating apps, groomed emotionally, and then drawn into investment or extortion setups — including digital arrest scenarios.

A Multi-State Indian Network Feeding a Laos Command Hub

The Indore Crime Branch and partner agencies say the Laos-based command centre relied on a wide support network inside India.

Key points from public reporting include:

• At least 19 accused have been arrested so far across Madhya Pradesh, Gujarat, Punjab, Uttar Pradesh and West Bengal, including SIM suppliers, mule-account providers and recruiters.
• Some of those arrested allegedly specialised in sourcing SIM cards and bank accounts in rural and semi-urban areas using either forged documents or by incentivising locals with small commissions.
• The fraud proceeds were moved through mule accounts and then converted to cryptocurrency before being routed overseas, making recovery and attribution harder.

Police say arrests in India are only the visible edge of the network. Teams are now focusing on the money trail, communication with foreign handlers and the rescue or identification of other Indians trapped in similar “work” camps in Laos.

Why This Case Matters – Cyber Slavery Meets Financial Crime

For law enforcement and regulators, the Indore–Laos probe illustrates several converging risks:

• Human trafficking + cybercrime — people recruited on false job promises are being turned into forced cybercriminals rather than conventional victims or offenders.
• Cross-border infrastructure — scam operations are physically located in foreign SEZs, but depend heavily on Indian SIM cards, Indian bank accounts and Indian intermediaries.
• High-value individual victims — digital arrest scams are increasingly hitting professionals, business owners and retirees with substantial savings.

For banks, fintechs, brokers and payment intermediaries, the case raises questions:

• How quickly can your systems spot large, sudden transfers to newly added beneficiaries or high-risk corridors?
• Do you have behavioural and geo-risk analytics tuned to patterns common in digital arrest and romance/investment scams?
• Are front-line teams trained to react when customers report being “kept on video call” or pressured by supposed agency officials?

Shunyatax Global View – Managing Cross-Border Cyber & Fraud Risk

At Shunyatax Global, this investigation is viewed as a reference case for how telecom and KYC loopholes, mule-account ecosystems and offshore, lightly regulated digital zones can fuse into a transnational cyber fraud and cyber-slavery pipeline.

In particular, we see three immediate priorities for institutions:

1. Advanced Transaction & Behaviour Monitoring
   Layer rules and machine-learning models to flag typical digital arrest patterns — multiple high-value outgoing payments under time pressure, to unrelated new beneficiaries or wallets.
2. Enhanced KYC & SIM-Linked Risk Controls
   Strengthen scrutiny of accounts opened with the same introducers or device fingerprints, especially in districts repeatedly flagged in cybercrime investigations.
3. Crisis Playbooks & Law-Enforcement Liaison
   Pre-defined response protocols for freezing suspect flows, preserving evidence and working with cybercrime units when customers are actively under “digital arrest”.

Shunyatax Global supports banks, NBFCs, payment firms and large corporates with:

• Cyber-financial risk assessments targeted at cross-border fraud patterns
• Forensic transaction reviews to identify mule networks and crypto off-ramps
• Regulatory and investigative support, helping organisations navigate inter-agency coordination across jurisdictions

Shunyatax.in Cyber Risk & Fraud Advisory

As India’s digital economy scales, cases like the Indore–Laos network show that fraud, trafficking and organised crime are no longer separate silos — they are deeply intertwined.

If your organisation touches customer payments, lending, investments or digital onboarding, now is the time to:

• Re-examine your fraud controls and alert thresholds
• Stress-test your response plans for live digital arrest or high-pressure scam situations
• Map your exposure to high-risk geographies, counterparties and account patterns

Visit Shunyatax Global at Shunyatax Accounting Services in India to:

• Request a confidential review of your cyber fraud and cross-border risk posture
• Explore advisory, analytics and forensic services for regulated entities
• Follow the Shunyatax News & Insights column for ongoing coverage of cybercrime, financial crime and compliance trends