A 78-year-old former banker who lost his life’s savings, a whopping Rs 23 crore, to a fake “digital arrest,” hopes his loss will serve as a warning to others.
For more than a month, retired banker Naresh Malhotra was confined to his Delhi home under ‘digital arrest’ and was allowed out only to make runs to his banks to replenish funds and hand over money to fraudsters posing as officers from investigative agencies.
In a month’s time, he had lost Rs 23 crore.
“I spent my life savings building security for my old age. In one month, it all disappeared because I trusted the wrong people. I hope my story serves as a warning,” he said, fighting back tears, to news agency PTI.
The Intelligence Fusion and Strategic Operations (IFSO) unit of Delhi Police, which specialises in cyber fraud cases, is now investigating the matter. Police said they have managed to freeze Rs 2.67 crore of the cheated amount in several bank accounts.
“The money trail revealed that the funds were layered across multiple accounts and withdrawn from different parts of the country to evade detection. Over 4,000 layered accounts were used to siphon off the funds,” an officer privy to the investigation told the agency. “We will crack the case soon and arrest those behind the scam,” the officer added.
On August 1, Naresh Malhotra, from South Delhi’s Gulmohar Park, received a call from a man claiming to be from a mobile connection company. The caller told him that his Aadhaar card had been used in Mumbai to issue a connection allegedly linked to terror funding cases.
“They told me that I needed to talk to the Mumbai Police regarding the same matter and if they approved, the connection would continue, or else it would be disconnected and the matter reported,” Mr Malhotra said.
He soon started receiving calls from various numbers. While some callers claimed to be from the Mumbai Police, others from the Enforcement Directorate (ED), and the Central Bureau of Investigation (CBI). All calls carried one thing – a legal threat.
“The moment I was connected with the police, they started pressuring me by saying that my Aadhaar had been used for terror funding, terror activities and many other serious offences,” he said.
The fraudsters told the former banker that he was under “digital arrest,” meaning he was under police surveillance and cannnot leave his home. He was ordered to attend video calls every two hours and told to keep everything a secret.
The scamsters also threatened him with passport seizure and barred him from travelling abroad.
Over a period of one month, between August 1 and September 4, the fraudsters carried out 20 transactions and withdrew Rs 23 crore from Mr Malhotra’s three bank accounts.
The imposters first asked him about his savings.
“They wanted to know how much money I had in my bank account. I told them I had almost Rs 14 lakh. They asked me to transfer the amount to their account, assuring me that it was only for verification,” he recounted.
Mr Malhotra said the scammers sent him forged RBI certificates after each transfer. He said he was told the money would be returned and that a nodal officer from RBI would contact him.
They asked him how much money he had in his mutual funds, systematic investment plans (SIPs) and other assets. Mr Malhotra was told that all his investments would be verified under the guidelines of the Bombay High Court.
“They said they would first verify 25 per cent of my assets and then continue with the rest according to their system. They threatened me that if I didn’t comply, they would make my family members co-accused in terror cases,” the former banker said.
Under constant intimidation, he visited three different banks, liquidated his investments, and transferred the proceeds to account numbers he was given. Each time, they issued him more forged certificates bearing the RBI’s name and seal.
On September 14, the fraudsters made a fresh demand and asked Mr Malhotra to deposit another Rs 5 crore in the name of the Registrar of the Supreme Court into a private bank account based in West Bengal.
“They told me this was the final step and that the Supreme Court was now monitoring the case. I refused to send the money and told them I would deposit the amount directly with the Supreme Court. I also said I would go to Hauz Khas Police Station and surrender,” Mr Malhotra said.
After that, the calls abruptly stopped.
On September 19, having realised he had been defrauded, Mr Malhotra approached the police.
