On September 8, Cyberabad police arrested 13 members of a Rajasthan-based gang involved in a massive Rs4 crore UPI fraud. The operation, carried out by the Shamshabad Central Crime Station (CCS) with the support of KPHB, Madhapur, and Narsingi police, resulted in the seizure of Rs1.72 lakh in cash and electronic goods worth Rs50 lakh.
The arrested individuals—identified as Som Raj, Sunil, LacRam, Sharwan, Somraj, Shivalal, Ramesh, Pappu Ram, Shravan, Rakesh, Ramesh, and Ashok Kumar—were part of an organized gang that operated across two locations: Hyderabad and Rajasthan.
The gang’s modus operandi involved purchasing high-value electronic goods from Bajaj Electronics showrooms in Hyderabad. Gang members would use the store’s QR code to initiate UPI payments, transferring the money through their associates in Rajasthan. After the items were delivered, the gang members would sell the goods and split the profits.
However, the scam didn’t end there. The associates in Rajasthan would later file chargeback complaints with the bank, claiming the transactions were unauthorized. This caused the payments to be reversed, with the money returned to the gang’s account, completing the fraud cycle.
The gang was involved in 10 different fraud cases, which were filed under sections 318(4), 303(2) of the Bharatiya Nyay Sanhita (BNS), as well as Section 66(D) of the IT Act. Investigations are ongoing, and authorities are working to uncover any additional links to further criminal activity.
This operation is a significant step in dismantling a well-organized cybercrime network targeting the retail electronics industry, exploiting the vulnerabilities of UPI payment systems.