How cyber fraudsters are using gold loans to break digital trail, Mumbai police explain | Mumbai News

Explaining their mode of operation, the police said the stolen money is funnelled through a few initial mule accounts. Field agents then use the funds to purchase high-value gold ornaments from well-known jewellery chains. The physical gold is then pledged with local moneylenders to secure gold loans. The clean cash received from these loans is routed through a fresh set of untainted accounts to reach the syndicate leaders ultimately.

“When law enforcement agencies track the digital money, the trail leads them to a jewellery shop, but the link goes cold there. It becomes incredibly difficult to track where that physical gold was subsequently mortgaged to extract cash,” Gopale explained.

The breakthrough in the case came from an alert bank employee in Delhi who grew suspicious when two men attempted to withdraw over Rs 8 lakh in cash and immediately alerted the local police. This initial arrest allowed investigators to trace the rest of the syndicate.

According to a police officer, two of the six arrested accused, identified as Birendra Kumar Bhagat, 26, and Ranjan Kumar Kharwar, 41, both hailing from Siwan city in Bihar, were specifically tasked with purchasing the gold.

“The roles assigned to each of the accused are different. Once the money is swindled from a victim, it is forwarded to these specific people who are instructed to buy gold. We have recovered CCTV footage of the accused from these jewellery shops, which serves as crucial evidence tying them to the crime,” the officer added.

Historically, the police have successfully arrested numerous mule account holders and, in several cases, even traced stolen funds up to the point where they were converted into cryptocurrency and laundered abroad. However, the move to physical gold loans marks an evolving challenge for cyber cells.

The executive who was duped

The investigation began after a senior accounts executive at INOX Group was defrauded of Rs 10.40 crore through 63 transactions between June 3 and June 15. The Mumbai Police froze over Rs 5 crore of the stolen amount and arrested six accused.

The scam began when the executive received a WhatsApp message from an unknown number featuring the company’s director’s profile picture.

Impersonating the director, the fraudster allegedly claimed to be tied up in critical meetings and instructed the executive to transfer funds to several specified bank accounts immediately. Believing the request to be authentic, the employee complied, transferring Rs 10.40 crore over 12 days before realising he had been cheated.