CID Unearthed ₹2.5 Crore Fraud in PM Jeevan Jyoti Bima Yojana

Organized racket used forged death certificates and mule accounts to siphon insurance payouts across Gwalior, Morena, and Ratlam.

 The state’s Crime Investigation Department (CID) has registered two cases involving a sophisticated ₹2.5 crore fraud linked to the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). Officials confirmed on Thursday that the investigation into the organized racket, which spanned across districts including Gwalior, Morena, and Ratlam, reveals a deeply systematic approach to insurance siphoning.

Systemic Exploitation of Policies

Preliminary findings indicate that the gang functioned by procuring a massive volume of insurance policies through a network of dubious bank accounts. In many instances, policies were issued in the names of individuals completely unaware that their identity had been compromised. The scheme often involved securing multiple policies for the same person or family members from different insurance providers to maximize the illicit gains.

Forged Documents and Payouts

The core of the operation relied on obtaining forged death certificates from local municipal bodies. Within a window as short as one month to a year after purchasing the policies, the suspects would falsely declare the insured individuals as deceased. Based on these fabricated records, the gang successfully processed and received insurance claims. Investigators have noted that in several cases, people were marked dead while they were very much alive.timesofindia.

Tracing the Financial Trail

Authorities found that the money was routed through a complex web of "mule accounts" to avoid immediate detection. Once the insurance payouts hit these accounts, the funds were quickly withdrawn from ATMs located in various cities, including Ratlam and even outside the state in Rajasthan, such as Sawai Madhopur and Ganganagar. The CID has now moved to identify these beneficiaries and freeze the suspicious bank accounts associated with the scam.

Expanding Scope of Investigation

Special Director General (CID) Pankaj Srivastava stated that the criminal operation was conducted with a high level of coordination across multiple districts. While the current investigation centers on the confirmed ₹2.5 crore discrepancy, officials are now working to determine if the network extends further. Teams are currently scanning banking and insurance networks to identify other potential victims and participants in the organized fraud.

Policy Security Under Scrutiny

The PMJJBY is a vital social security initiative designed to provide a ₹2 lakh life insurance cover to economically weaker sections at an annual premium of ₹436. The abuse of this scheme by organized gangs has raised serious concerns regarding verification processes at both the municipal and banking levels. As the investigation progresses, state authorities are expected to push for tighter oversight to prevent similar misuse of government social security nets.

Cyber Fraud in Raipur: Three Residents Duped of ₹8 Lakh in Separate Incidents

Raipur cyber fraud cases continue to rise as miscreants target residents through sophisticated phishing, mobile hacking, and fake insurance updates.

Raipur: In a series of alarming incidents, cyber criminals have swindled approximately ₹8 lakh from three separate individuals in the capital city. Using a mix of predatory loan traps, credit card fraud, and fake consumer court threats, the perpetrators managed to siphon off money before the victims could realize they were being scammed. Local police have registered separate FIRs, and specialized teams are currently tracking the digital footprints of the fraudsters.

The Loan App Blackmail Trap

The most severe case was reported from the Tikrapara area, involving a private sector employee, Vishal Gupta. On March 10, 2026, Gupta had applied for a modest online loan of ₹10,000. Instead of processing a legitimate loan, the suspects informed him that a higher amount—₹40,000—had been approved.

Under the guise of the application process, the fraudsters gained remote access to Gupta’s mobile device. They allegedly accessed his personal gallery, morphed his private photos into obscene content, and then used this to extort money. Sources indicate that the victim was coerced into transferring nearly ₹6 lakh under the constant threat of having his reputation destroyed on social media.

Army Personnel Targeted

In a separate incident under the Saraswati Nagar police station limits, a serving Army Subedar, Harishchandra Singh, fell prey to a phishing scam. On April 17, he received a phone call from an individual claiming to be a representative from Axis Bank.

The caller offered to help him redeem accumulated reward points on his credit card. The perpetrator guided the Subedar to a fraudulent website and requested his card credentials. Shortly after entering the details, Singh received alerts of unauthorized transactions totaling ₹1,99,996. Realizing the deception, he promptly contacted the bank’s customer care and registered a complaint via the 1930 national cybercrime helpline.

Fake Insurance Claims

The third case involves a fruit trader, Jaykumar Wadhwani, a resident of Amlidih, who was targeted through a convoluted insurance scheme. The suspects contacted Wadhwani, claiming his ICICI Prudential life insurance policy was facing losses and required urgent intervention.

The callers created a false sense of panic by mentioning fictitious legal actions in a "Consumer Court." They then sent a malicious link under the pretext of providing a "freezing code" to secure his policy. Once Wadhwani clicked the link, the suspects gained access to his banking information and withdrew ₹55,000 from his account.

Police Urge Public Caution

Raipur police officials have reiterated their warning regarding unsolicited calls and suspicious links. Investigators noted that these gangs often operate from outside the state, making recovery difficult.

"People must remain vigilant against 'urgent' calls regarding bank details or insurance updates. Never click on unverified links or share OTPs," said an officer familiar with the ongoing investigations. As of now, authorities are analyzing the bank accounts where the stolen funds were transferred, hoping to trace the perpetrators behind this wave of Raipur cyber fraud.

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.