How a Goa Woman’s ‘Digital Arrest’ Led to the ED Uncovering a Nation-Wide Money Laundering Network, Involving 333 Victims and a Loss of Rs 417 Crore

A WOMAN RESIDING IN NORTH GOA became the target of “digital arrest” — a type of cyber scam where criminals pretend to be law enforcement or government officials and falsely claim that a victim is under online detention or investigation. The woman was duped out into transferring Rs 2.96 crore to the scammers in installments in over 10 days. An Enforcement Directorate (ED) probe into this matter led to the exposure of a much larger money laundering network — one involving the embezzlement of over Rs 417.49 crore, with banking transactions of over Rs 27,850 crore and cash deposits of nearly Rs 2,904 crore.

On Sunday, August 23, 2026, the ED arrested two individuals —  Fahim Moin Hussain Sayed and Naim Mueen Sayyed —  under the Prevention of Money Laundering Act (PMLA) 2002. The two cyber fraudsters were involved in a nation-wide money laundering scam, involving an organized network of cyber fraudsters whose accounts are the subject of over 163 FIRs by 333 victims across 20 states and Union Territories. The scam allegedly resulted in an aggregate loss of over Rs 417.49 crore.

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How a Goa Woman’s Digital Arrest Lead to the ED Uncovering a Nation-Wide Money Laundering Network

The matter began back in May-June 2025, when a local woman in Goa was coerced into transferring Rs 2.96 crore to scammers after she became a victim of a “digital arrest” scam. She transferred the demanded money in installments in over 10 days. An FIR was registered at a cyber-crime police station, subsequent to which the Enforcement Directorate (ED) launched an investigation to probe into the matter. 

During its investigation, the ED found that the victim’s money was routed through several newly-opened bank accounts. These accounts formed part of an “organized apparatus” that converted the stolen money into banking credits, then cash, and eventually into foreign currency. For this purpose, several business companies holding Reserve Bank of India (RBI) licenses fraudulently posed as Full Fledged Money Changers (FFMCs) — authorized entities that buy and sell foreign exchange. 

What the ED Investigation Uncovered

ED investigators found that the Goa victim’s funds entered into circulation mere hours after the digital arrest fraud took place. The funds were first routed through dormant, newly-opened bank accounts and then subsequently funneled into 400 different beneficiary accounts. The stolen money’s trail led to the exposure of an interconnected network of commodity, trading, travel, and forex companies, which have together undertaken banking transactions of around Rs 27,850 crore, and deposited approximately Rs 2,904 crore in cash, including Rs 584.70 crore through 61,448 bulk note acceptance machine transactions at several locations.

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The ED further found that this interconnected network of business companies were also the subject of over 163 FIRs filed by 333 victims across 20 States and Union Territories. This nation-wide money laundering network involved an aggregate reported loss of Rs 417.49 crore. “In 101 of those complaints, the money of a single victim was routed into two or more entities of the same network,” the ED stated.

ED Searched 20 Locations Across Mumbai and Goa; Cash, Digital Devices Seized

On July 17, 2026, and August 21, 2026, the Enforcement Directorate conducted searches at over 20 locations in Mumbai and Goa. Around Rs 3.25 crore in cash were seized, in addition to digital devices, records and statutory registers, which are currently being examined by the agency. 

(Edited by Agniva Ray)

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