Kannur: Despite repeated warnings and widespread media coverage, Kerala continues to fall victim to relentless ‘digital arrest’ scams, with high-value victims losing crores to cybercriminals. The latest additions to the long list of victims from the state include an 84-year-old industrialist from Irinjalakuda in Thrissur and an elderly couple from Kannur. The industrialist lost ₹5.4 crore, while the couple was defrauded of ₹1.5 crore.

The industrialist was targeted through a virtual arrest scam from September 2025 to January 2026. Over several months, the scammers pressured him with threats, claiming that the Directorate of Enforcement in Mumbai held evidence linking him to a money-laundering case and that he would soon be arrested. The fraud came to light only when the man, who lives alone, reported it to the police on February 14.

Meanwhile, the elderly couple in Kannur first received a call from the scam syndicate early last month. The caller claimed that their Aadhaar card had been recovered from the residence of Adil Gory, who was arrested in connection with the Pahalgam terror attack. Alleging that there was evidence of the couple receiving money from terrorists, the scamster instructed them to deposit their funds so that the Reserve Bank of India could verify them and prove their innocence.

Fearing the consequences, the couple transferred money from two joint bank accounts. By January 31, a total of ₹1.58 crore (₹1,58,66,900) had been sent. When the scammers demanded an additional ₹50 lakh and the couple visited the bank, the branch manager became suspicious and alerted the police. Upon inquiry, the 89-year-old husband told the police that he had been in CBI custody.

The couple, who had lived abroad for over 40 years, had only recently returned to Kannur. Based on a complaint filed by the 77-year-old wife, the cyber police registered a case.

Expanding web of cybercrime
In just two years, Kerala has seen over 60,000 bank accounts used in cyber fraud frozen. However, police maintain that more than 1.5 lakh mule accounts remain active. Most of these accounts are exploited to move stolen money from other states, while funds defrauded within Kerala are funnelled through similar accounts elsewhere.

Police warn that cyber fraud networks with foreign and North Indian links are steadily expanding their reach across the state. Many unsuspecting individuals are lured by promises of easy money and rent out their bank accounts along with ATM cards and SIM cards for ₹5,000 to ₹10,000. These small rewards, however, fuel a massive scam network.

Bank accounts and personal data at risk
According to police, the persistent ‘digital arrest’ scams expose gaps in fraud prevention and suggest that sensitive bank account details, especially those of high-value customers, may be reaching fraudsters through insiders connected to banks.

Cyber scams drain ₹54,000 crore
Kerala lost ₹814 crore to cyber fraud in 2025, with investment scams accounting for ₹413 crore and affecting 42,500 victims. In 2024, 41,430 victims lost ₹764 crore. Social media employment scams caused an additional loss of ₹105 crore.

Across India, cyber scams led to losses of ₹20,000 crore in 2025. The central government reports that cumulative losses from cyber fraud nationwide have now reached ₹54,000 crore.

Rise of AI-powered fraud
The latest scams exploit AI-generated videos circulating on social media. In one such video, opposition leader Rahul Gandhi appears to allege that a government-backed investment app is corrupt. In Parliament, Finance Minister Nirmala Sitharaman clarified that the app is official, open to all investors and offers legitimate high returns.

The video also shares a download link, which police say has led many viewers to download the app and fall victim to the scam.