New Delhi: In a shocking instance of modern financial fraud, 78-year-old retired banker Naresh Malhotra of South Delhi’s upscale Gulmohar Park colony has lost a staggering ₹22.92 crore over a period of six weeks, after falling victim to an elaborate “digital arrest” scam.
Despite being financially savvy, Malhotra was manipulated into transferring huge sums to scammers posing as officers of the Enforcement Directorate (ED) and Mumbai Police.
For neighbors and friends, nothing seemed out of the ordinary. Malhotra continued his daily walks in the colony park, evening get-togethers, casual addas with friends, and club visits.
Yet, during the same period, he quietly visited branches of three banks where he held accounts, transferring funds in 21 transactions to 16 different accounts under the scammers’ instructions.
Bank officials remained unaware of the ongoing fraud. In one branch, Malhotra reportedly sat calmly drinking tea while massive amounts were being moved out.
Even for small withdrawals, such as paying monthly salaries to his household staff, Malhotra sought “permission” from the fraudsters, reflecting the psychological grip of digital arrest, where victims act under constant coercion and fear.
“It is as if I was possessed and had lost all my senses; my thinking process was completely taken over by the scammers,” Malhotra told The Indian Express, describing the manipulative tactics that left him incapable of independent decision-making.
The Complexity of the Scam
It took Malhotra six weeks to muster the courage to report the disappearance of his savings. On September 19, he filed a complaint, leading to the registration of an FIR and the task of untangling the complex web of transactions by the Delhi Police.
Investigations revealed that the initial 21 transactions had been split across 4,236 smaller transactions, spanning seven layers, making it extraordinarily difficult to trace the money. Rajneesh Gupta, Joint Commissioner of the IFSO (Intelligence Fusion & Strategic Operations) Branch of Delhi Police, said, “Such layering is common in digital arrest cases. Sometimes we have seen as many as 20 layers.
When the golden hour of reporting is lost, tracing the culprits and freezing funds becomes extremely challenging.”
Digital Arrest: A Growing Threat
Digital arrest is emerging as a serious threat in India, especially among the elderly and financially independent. Victims are coerced via phone calls, messages, and digital communication, often threatened with legal action or falsely accused of criminal activity, forcing them to transfer funds to fraudsters.
Despite repeated awareness campaigns and social media advisories warning citizens not to fall for such scams, cases like Malhotra’s indicate that the psychological manipulation and fear tactics used by scammers remain highly effective.
Experts warn that victims of digital arrest are often isolated, stressed, and unable to consult anyone, which allows scammers to maintain control for weeks. Malhotra’s case is a stark reminder that even financially literate individuals can be trapped, highlighting the urgent need for proactive verification measures, stringent bank monitoring, and public education on cyber fraud.
Urgent Need for Awareness and Safeguards
Cybersecurity specialists urge the public to verify any instructions claiming to come from government agencies, avoid acting under threat or panic, and report suspicious communications immediately. Banks and law enforcement agencies are also being called upon to tighten safeguards and educate customers, particularly the elderly, to prevent future incidents.
The Malhotra case has once again demonstrated the enormous psychological control scammers can exert, and the huge sums of money at stake in the era of digital banking, marking a warning to citizens across India.
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