Biggest Cyber Scam Of 2026 In Bengaluru Exposed After Police Bust Rs 1,000 Crore Fraud With Dubai Links

Last Updated:January 15, 2026, 16:24 IST

Investigators say the fraud syndicate operated across Bengaluru, New Delhi and several other parts of India, with money routed through cryptocurrency to avoid detection

The accused targeted victims by luring them with promises of high returns through stock market investments and online job opportunities that claimed to offer unusually high salaries. (Image: Representational)

What began as a routine cyber fraud complaint in Bengaluru has unravelled into one of the largest digital scam networks the city has seen in recent years. Bengaluru police say the network siphoned off more than Rs 1,000 crore from unsuspecting victims across the country, using rented bank accounts, betting apps and cryptocurrency to move money and stay hidden.

The Hulimavu police have arrested 12 people, including a 22-year-old man and his mother, and frozen Rs 240 crore spread across nearly 4,500 bank accounts. The alleged mastermind, 55-year-old Mumbai-based Prem Taneja, is currently absconding in Dubai. Police have issued a lookout notice for his arrest. Investigators say the fraud syndicate operated across Bengaluru, New Delhi and several other parts of India, with money routed through cryptocurrency to avoid detection.

How the Did The Cyber Fraud Network Operated?

According to police, the gang ran its operations from New Delhi, where it maintained an office inside a residential apartment. The accused targeted victims by luring them with promises of high returns through stock market investments and online job opportunities that claimed to offer unusually high salaries.

Victims were encouraged to invest through betting and trading platforms, including apps named Swamiji.com and Neo System App, both allegedly owned by Taneja. Investigative sources said Google has been formally requested to shut down both applications.

In just the last two months, the accused are believed to have withdrawn Rs 240 crore using rented bank accounts. Preliminary investigations suggest the total amount defrauded could exceed Rs 1,000 crore over the past two years.

Among those arrested is Mohammed Huzaifa, a school dropout from Bengaluru with expertise in online gaming and technology. Police said Huzaifa had previously hacked a betting app run by Taneja twice. Instead of pursuing legal action, Taneja allegedly paid him to fix the app and later invited him to New Delhi in 2023.

During this period, Huzaifa allegedly began arranging rented bank accounts for cyber fraud transactions. Police said he lured labourers with money and opened bank accounts in their names. Since 2023, he is believed to have supplied around 7,500 such rented bank accounts to fraudsters.

Huzaifa reportedly travelled to Dubai every 15 days, where he worked with Taneja to convert fraud proceeds into cryptocurrency. Police said he earned between Rs 30 lakh and Rs 35 lakh every month, spending the money on gold jewellery for his mother and girlfriend. He had also recently purchased a flat and was preparing for his marriage.

Huzaifa’s mother, Sabana, was also arrested for allegedly assisting her son in setting up rented bank accounts used in the fraud.

Other arrested accused include Ankit Kumar Singh (33) from Uttar Pradesh, Ajit Kumar Yadav (29) from Bihar, Abhishek Singh Rathore (22), Pitamber Singh (34) from Rajasthan, Pradeep Singh Tanwar (30), Vishwaraj Singh (28), Kushal Singh (26), Satyam Kumar Pandey (27), Akash Jaiswal (29) and Ajay Kumar (33) from Jharkhand.

Police seized Rs 1 crore in cash, half a kilogram of gold jewellery, nine watches, satellite phones, 58 mobile phones, seven laptops and Rs 4.89 lakh during the raids.

Use of Satellite Phones and Crypto Transfers

Investigators revealed that the accused used satellite phones to communicate with Taneja in Dubai. Sources said calls made using these phones left no trace, with data reportedly erased within minutes. The telecom department was also unaware of the communication, police sources added.

The case came to light after a 58-year-old resident of Akshay Nagar filed a complaint in November, stating that he had been cheated after receiving a Telegram message claiming he had earned Rs 3.03 crore through investments made on the Neo System app.

Based on the complaint, a special team comprising DCP (Electronic City Sub-Division) M Narayana, Inspector B G Kumaraswamy, PSI Aravind Kumar and Constable Ramakrishna conducted a technical investigation. The probe traced transactions linked to Swamiji.com and the Neo System app to rented bank accounts, leading police to uncover the nationwide fraud network.

City Police Commissioner Seemanth Kumar confirmed the arrests and seizure. “We have busted a network of cyber fraudsters operating across the country and frozen Rs 240 crore in bank accounts. A reward of Rs 50,000 has been announced for the investigating team. Further rewards will be given," he said in news reports.

Investigations are ongoing, and police expect further revelations as they track additional financial trails linked to the syndicate.

News bengaluru-news Biggest Cyber Scam Of 2026 In Bengaluru Exposed After Police Bust Rs 1,000 Crore Fraud With Dubai Links