'Hope my story serves as warning': Ex-banker loses Rs 23 crore to digital fraud

A retired banker in Delhi, Naresh Malhotra, has lost Rs 23 crore to a group of digital fraudsters who kept him confined to his house for over a month, demanding money under the guise of officials from the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI).

Malhotra, 78, was first contacted on August 1 by a person posing as a representative from a mobile connection company, who claimed his Aadhaar card had been used in a Mumbai terror funding case.

"They told me that I needed to talk to the Mumbai Police regarding the same matter and if they approved, the connection would continue, or else it would be disconnected and the matter reported," Malhotra told news agency PTI.

The call was then transferred to individuals posing as Mumbai Police officers, who threatened Malhotra with serious charges, including involvement in terror activities. "They started pressuring me by saying that my Aadhaar had been used for terror funding, terror activities and many other serious offences," he recounted. The fraudsters warned him not to reveal the matter to anyone, even his family, or else they would be considered co-accused.

The scammers quickly began probing Malhotra's finances. They demanded to know the amount in his bank accounts and instructed him to transfer Rs 14 lakh for "verification." After each transfer, Malhotra received forged RBI certificates as proof. "They said the money would be returned and that a nodal officer from RBI would contact me," he explained.

As the fraudsters grew more audacious, they demanded access to Malhotra's mutual funds, SIPs, and other assets, pressuring him into liquidating his investments. They assured him the process would follow the Bombay High Court's guidelines. "They said they would first verify 25 percent of my assets and then continue with the rest," Malhotra said, adding that they threatened him with further consequences if he did not comply.

Between August 1 and September 4, Malhotra was confined to his home, only allowed to visit banks to withdraw money for the fraudsters. He made multiple trips to three different banks and transferred the proceeds to accounts they provided. 

The scam escalated on September 14 when the fraudsters demanded another Rs 5 crore, claiming that the Mumbai Police officer handling his case was compromised by terrorists. They instructed him to deposit the money into an account in West Bengal, under the guise of the SC's involvement in the case.

"I refused to send the money and told them I would deposit the amount directly with the Supreme Court. I also said I would go to Hauz Khas Police Station and surrender," Malhotra said. After his refusal, the calls stopped.

Realising he had been defrauded, Malhotra approached the police on September 19. "I spent my life savings building security for my old age. In one month, it all disappeared because I trusted the wrong people. I hope my story serves as a warning," Malhotra said, holding back tears.

Delhi Police's Intelligence Fusion and Strategic Operations unit is investigating the case. The police have managed to freeze Rs 2.67 crore of the defrauded money in several bank accounts. An officer involved in the investigation revealed that the money was transferred across more than 4,000 layered accounts in a bid to evade detection.