Malaysian couriers allegedly used to route fraudulently activated SIM cards to Cambodian cybercrime operators

Massive Probe Triggered

The Enforcement Directorate has cracked open what investigators are calling one of the more elaborate cross-border cyber fraud operations linked to India in recent years. Acting under the Prevention of Money Laundering Act, the agency conducted raids across seven locations in Rajasthan and Punjab beginning June 5 — targeting a network that allegedly funnelled thousands of Indian SIM cards to Cambodia, where criminal outfits used them to run large-scale scams against Indian citizens.

The investigation was triggered by an FIR registered at the Jodhpur Cyber Police Station. Search operations spanned Kishangarh, Nagaur and Jodhpur in Rajasthan, as well as Ludhiana in Punjab. Agencies seized documents, digital evidence, multiple electronic devices and 14 mobile phones during the raids.

36,000 SIM Cards, 5,300 Fraud Links

The scale of the operation only became clear once investigators began analysing mobile data. Of roughly 2,30,000 suspicious numbers put under the scanner, nearly 36,000 Indian SIM cards were found to be active in Cambodia. Around 5,300 of those were directly traceable to cyber fraud cases filed in India — numbers used to facilitate scams running into hundreds of crores of rupees.

That's not a small leak in the system. It points to a sustained, organised supply chain that kept pushing Indian mobile numbers into foreign hands over a significant period.

How the Racket Was Structured

According to the ED, SIM vendors at the centre of this network exploited their access to telecom Point of Sale IDs to sign up targets. People — often from less educated or economically vulnerable backgrounds — were approached with offers of free SIM porting or new connections. What followed was straightforward but brazen: additional SIM cards were activated using the same documents, without the individuals' knowledge or consent.

Those extra SIM cards were then handed over to Malaysian nationals, who acted as couriers moving the cards out of India and into Cambodia. Once there, cybercrime operators used the Indian mobile numbers to carry out "digital arrest" frauds and various other online cheating schemes — all while appearing to contact victims from what looked like legitimate Indian numbers.

The 'Digital Arrest' Angle

The use of Indian SIM cards for digital arrest scams is particularly significant. In these frauds, callers impersonate law enforcement officials — CBI officers, customs agents, narcotics bureau personnel — and tell victims they are under investigation. Victims are kept on video calls for hours, sometimes days, told not to speak to anyone, and pressured into transferring large sums of money. The use of Indian mobile numbers lends the scam a veneer of credibility that makes victims less likely to hang up.

Having a local number flash on the screen has, in several documented cases, been the difference between a victim falling for the fraud or suspecting something off.

Rajasthan and Punjab in Focus

The geographic spread of the raids — covering both Rajasthan and Punjab — suggests the SIM activation network was not concentrated in one place. Kishangarh and Nagaur in Rajasthan, alongside Ludhiana in Punjab, are all areas with active telecom retail ecosystems, making them viable bases for POS-level fraud operations.

The ED has not yet named specific accused publicly, but the seizure of 14 mobile phones alongside digital evidence suggests the agency is working to establish communication chains and financial trails that could expand the scope of arrests.

What Comes Next

With money laundering charges in play, the ED's focus will likely shift toward tracing proceeds from the fraud network — identifying how payments moved from victims to the Cambodia-based operators, and whether any funds were repatriated or laundered through Indian accounts. Given the PMLA framework, asset attachment proceedings could follow as the investigation deepens.

For ordinary SIM card holders, the case is also a reminder that documents submitted even for routine telecom requests can, under the right conditions of negligence or fraud, end up enabling crimes thousands of kilometres away.

A major cyber fraud case involving a so-called digital arrest scam has surfaced, linking Tamil Nadu to Madhya Pradesh, where police have arrested three individuals for facilitating the illegal transfer of funds through a mule bank account. The case highlights the growing scale of organized cybercrime networks operating across multiple states in India.

Victim targeted through digital arrest scam

The incident originated in Coimbatore, Tamil Nadu, where a resident identified as KC Sridhar fell victim to an elaborate online fraud. The scammers allegedly posed as officials and manipulated the victim into believing he was under digital arrest, a tactic increasingly used to create fear and urgency. Under this pressure, the victim was coerced into transferring a total amount of Rs 67,75,301.

Fraud money traced to Ratlam bank account

During the investigation, authorities tracked a portion of the defrauded amount to a bank account in Ratlam, Madhya Pradesh. According to police findings, Rs 47,75,301 was deposited into an account held with a private bank. This discovery confirmed the involvement of an interstate cybercrime network using layered financial channels to conceal transactions.

Police identify mule account operations

Further inquiry revealed that the Ratlam-based account was being used as a mule account. Such accounts are typically opened or operated by individuals who allow criminals to route illegal funds through their banking systems in exchange for commissions. This practice helps fraudsters obscure the origin and movement of money.

Three accused arrested in Ratlam

Ratlam police acted swiftly after receiving inputs through national cybercrime coordination platforms. The account holder, a 23-year-old man named Pratham Mittal, was taken into custody. During interrogation, he admitted that he had opened and provided access to his account at the behest of two associates.

Based on his statement, police arrested Hemant Rayak, also known as Monu, and Shubham Reda, both residents of Ratlam. Investigators confirmed that all three were aware of the illegal nature of the transactions and were motivated by financial incentives.

Case registered under legal provisions

Authorities have registered a case under relevant sections of the Bharatiya Nyaya Sanhita, 2023, specifically dealing with financial fraud and cheating. The police are continuing their probe to identify other members of the network and establish links with similar cybercrime operations across states.

How mule accounts enable cybercrime

Mule accounts play a crucial role in cyber fraud schemes by acting as temporary holding points for stolen money. Criminals often recruit individuals through offers of easy money, convincing them to share banking credentials or open accounts. These accounts are then used to transfer funds rapidly, making it difficult for law enforcement agencies to trace the money trail.

Police advisory and public warning

Officials have urged citizens to remain cautious of unsolicited calls, especially those involving threats of legal action or claims of digital arrest. People are advised not to share personal or banking details with unknown individuals and to avoid opening accounts on behalf of others for monetary benefits.

In case of suspected cyber fraud, victims are encouraged to immediately contact the national helpline 1930 or report the incident on the official cybercrime portal. Authorities have emphasized that timely reporting can significantly improve the chances of recovering stolen funds.