‘Dr Morphine’, Chinese links and Kashmiri money mules: How J&K Police cracked a Rs 209 crore global cyber racket

209 crore online scam exposed by Ganderbal Police.
The scale of the fraud might reach as high as more than 400 crore. (Source: Daily Excelsior/IndiaMART Corporate)

On 16th February (Monday), police informed that they busted a vast international internet investment scam worth over ₹209 crore in one of the largest cyber fraud crackdowns in Jammu and Kashmir. The kingpin Ekant Yogdutt, alias Dr Morphine, is an MBBS doctor from Haryana’s Hisar. He is one of the nine individuals who have been arrested. The development took place when a Special Investigation Team commenced an inquiry after a complaint in Ganderbal.

Police have gathered information about 835 bank accounts and confirmed transactions in 290 of them, exposing deposits from investors all over India totalling ₹209 crore. According to them, the entire amount could surpass ₹400 crore after a thorough inquiry.

The authorities exposed several fraudulent online investment websites during the inquiry, such as paisavault.com, which enticed victims with promises of large coin trading profits on social media and search engines. The collected money was then transferred into local bank accounts owned by people from Budgam, Srinagar, Ganderbal, Baramulla, and other places.

To hide the money trail and avoid detection, the crooks in charge of these accounts quickly moved the money outside of Jammu and Kashmir by utilising a variety of transactional layers, involving cross-border transfers.

During his MBBS studies in the Philippines, Yogdutt reportedly developed proficiency in cyber fraud techniques and kept in touch with Chinese nationals. He worked with Kashmiri local agents who served as account mobilisers and regional leaders. They targeted account holders who were below the poverty line (BPL) and convinced them to give up their ATM cards and bank accounts for ₹8,000-10,000 a month.

The scheme was also facilitated by some bank staff who provided QR codes associated with these accounts, which were subsequently posted on counterfeit investing websites. The scammers used Telegram groups and channels to disseminate new QR codes. The accused would instantly create new accounts and upload new QR codes to carry on the fraud whenever cyber units nationwide blocked accounts following complaints.

Senior Superintendent of Police (SSP) Ganderbal Khalil Poswal mentioned, “These fraudsters have established Telegram channels and groups where they regularly upload new QR codes. It is worth mentioning that once heavy transactions occur in such accounts, upon receipt of a complaint, cyber units across the country freeze such accounts, but the fraudsters promptly upload new QR codes.”

Yogdutt was caught in Delhi by Ganderbal police as he was returning from China, while others had been nabbed from different regions of the valley. Now, a further probe is underway to unearth the entire money trail and start the process of attaching the accused’s properties.

The global, multi-crore online investment network that included phoney trading platforms and phishing was successfully busted after a resident of Safapora filed a complaint at the Ganderbal Police Station. As a result, a First Information Report (FIR) was submitted under sections 3(5), 61(2), 316(4), 318 and 111 of the Bharatiya Nyaya Sanhita (BNS) and section 66-of the IT Act to look into allegations of online cheating and identity theft by a group of cybercriminals.

Police have also cautioned residents against renting out their bank accounts for financial gain and asked them to be on the lookout for fake investment websites that promise astronomical profits. Victims are told to contact the toll-free hotline at 1039 or file complaints on the official cybercrime portal at cybercrime.gov.in.


Written by OpIndia Staff
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