Hyderabad cybercrime police arrest two for alleged digital arrest fraud

Hyderabad Cyber Crime Police arrested two Ameerpet men for allegedly helping a digital arrest fraud network move money through bank accounts and cryptocurrency. Police said a retired employee and his daughter lost Rs 29.17 lakh, while a suspect remains absconding

Hyderabad: The Hyderabad Cyber Crime Police have arrested two men for allegedly helping a digital arrest fraud network route money through multiple bank accounts and cryptocurrency transactions to conceal the trail of funds.

The arrested men, Mohd Ashfaq Hussain and Ahmed Najeeb Uddin, both 27 and residents of Ameerpet, allegedly arranged bank accounts, withdrew money obtained from victims and deposited it into other accounts in return for commissions. A third suspect, Sachin, a Bengaluru resident, is absconding.

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According to the police, a 63-year-old retired employee and his daughter were cheated of Rs 29.17 lakh by fraudsters posing as officials of the Delhi Police, the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED). The fraudsters contacted the victim on March 3, 2025.

The accused allegedly claimed that the victim was involved in a money-laundering case involving Rs 6.8 crore and threatened to arrest him. They sent forged official documents and claimed that his Aadhaar details and fingerprints had been misused in the crime.

“Under the pretext of verifying their bank accounts and promising to refund the money, the fraudsters persuaded the victim and his daughter to transfer the amount. They also threatened them with arrest and instructed them to maintain secrecy, citing national security. When the money was not returned, the victim approached the police,” officials said.

During the investigation, police traced the financial transactions and arrested the two men in Ameerpet on Saturday. During questioning, the duo allegedly told investigators that they had come into contact with Sachin through WhatsApp while facing financial difficulties.

According to the police, Ashfaq shared bank account details obtained from Najeeb with Sachin, who allegedly transferred the fraud proceeds into those accounts. The two men then withdrew the money through cheques and deposited it into several accounts using cash deposit machines.

Sachin allegedly used the funds to purchase USDT, a cryptocurrency stablecoin, and sold it online for Indian rupees. He allegedly paid commissions to the two men for facilitating the transactions.

Police seized two Apple iPhones from the arrested men. The alleged fraud network is linked to around 16 cases registered across the country, police said.

The two men were produced before a court. Efforts are under way to apprehend Sachin.