J&K Police Bust ₹209 Crore Transnational Fake Investment Scam, 9 Arrested

₹209 Crore Online Investment Scam Busted

The Jammu & Kashmir Police dismantled a major transnational online investment fraud network that defrauded investors of at least ₹209 crore, with officials estimating the total scam size could exceed ₹400 crore.

Nine individuals have been arrested, including an MBBS doctor allegedly linked to foreign cybercrime contacts.

How the Scam Operated

Step-by-Step Modus Operandi

1. Fraudsters created fake investment and crypto trading websites
2. Platforms promoted aggressively on social media & search engines
3. Example domain used: paisavault.com
4. Investors lured with unrealistic high-return promises
5. Funds collected into local mule accounts
6. Layered transactions routed money outside J&K and overseas

Police confirmed that 835 bank accounts were identified.

Out of these:

• 290 transactions verified

• ₹209 crore traced so far

• Estimated total scam value: ₹400+ crore

Targeting Vulnerable Citizens

The network exploited:

• Below Poverty Line (BPL) account holders

• Rural banking customers

• Financially weak individuals

They offered:

• ₹8,000–₹10,000 per month

• In exchange for access to bank accounts & ATM cards

These accounts were then used as mule channels for laundering proceeds.

Suspected Banking Nexus

Investigators revealed:

• QR codes linked to mule accounts

• Possible involvement of some bank employees

• Quick inter-state and international fund transfers

Funds were routed through districts including:

• Budgam

• Srinagar

• Ganderbal

• Baramulla

Mastermind Identified

The alleged mastermind:

Ekant Yogdutt alias “Dr Morphine”

• Resident of Hisar, Haryana

• MBBS graduate from Philippines

• Allegedly learned cyber fraud techniques abroad

• Maintained links with foreign nationals including Chinese contacts

He was arrested at:

Indira Gandhi International Airport
While returning from China.

Network Structure

The eight other accused:

• Acted as regional heads

• Mobilised mule accounts

• Recruited account holders

• Processed fraudulent transactions

This reflects a layered, decentralised scam structure.

Investigation & Asset Attachment

Authorities are now:

✔️ Mapping full money trail
✔️ Identifying overseas beneficiaries
✔️ Initiating property attachment
✔️ Expanding forensic banking audit

Cyber forensics experts are analysing:

• IP logs

• Crypto wallets

• Banking data

• Server infrastructure

Why This Case Is Significant

This case demonstrates:

• Integration of crypto + banking mule networks

• Use of digital marketing for scam promotion

• Exploitation of economically vulnerable groups

• Possible foreign coordination

The scale - potentially ₹400 crore - places this among major regional online fraud cases.

Public Advisory

Police have warned citizens:

 Do not invest in platforms promising unrealistic returns
 Never rent bank accounts for commission
 Verify domain legitimacy before investing
 Avoid crypto schemes without regulatory oversight

Victims are advised to report immediately via:

• Cyber helpline 1930

• National Cyber Crime Portal

Strategic Insight

Transnational scam networks increasingly use:

• Social engineering

• Multi-layer laundering

• BPL account recruitment

• QR-code payment routing

• Crypto-trade façade websites

Such hybrid financial fraud models are growing due to:

• Easy digital onboarding

• Weak KYC compliance in rural banking

• Global crypto transfer mechanisms