In a significant crackdown on cyber fraud and cross-border money laundering, the Enforcement Directorate (ED) raided three premises in Khanpur, Delhi, suspected to be fake call centres involved in duping United States citizens under the guise of selling pirated software.

The raids were conducted on July 31, 2025, at around 10:30 p.m., and as of the morning of August 1, 2025, the searches were still ongoing. These operations are being carried out under the Prevention of Money Laundering Act (PMLA), which allows ED to probe and attach properties related to proceeds of crime.

Details of the Scam

According to sources, the fraudulent operations were disguised as customer support call centres, offering software-related assistance. The scammers allegedly contacted U.S. citizens or responded to their support queries and pitched "fictitious or pirated" software products — posing as authentic versions of Microsoft Windows and other widely-used software.

Once the victims were convinced, they were asked to make payments via international bank transfers or digital wallets, resulting in foreign remittances to the tune of ₹100 crore over a span of nine financial years (2016-17 to 2024-25).

How It Worked

The modus operandi, as per initial investigation, involved:

• Creating a fake software sales and tech support setup.

• Cold-calling or responding to tech-support search queries of users in the US.

• Pitching fake warnings like malware alerts, expiring licenses, or system compromise.

• Convincing victims to buy "official software packages" or service renewals.

• Redirecting payments through layered remittance channels, eventually landing in Indian bank accounts linked to shell firms.

This entire chain of deception allowed the network to operate under the radar for nearly a decade, accumulating funds that were likely laundered or repatriated into various sectors such as property, gold, or shell investments.

Enforcement Directorate's Action

The ED, acting on credible intelligence and inputs from international cooperation channels, began tracing the money trail. During the ongoing raids, officials have reportedly seized:

• Digital evidence like computer systems, storage devices, and transaction logs.

• Documents detailing international wire transfers and remittance receipts.

• Phone call recordings or scripts used by agents to trap victims.

The agency is also interrogating suspects to understand the structure of the fraud, including the masterminds, financial conduits, and front-end employees. Sources indicate that some operatives had previously worked in legal BPOs but turned rogue due to the high profit margin of such scams.

Use of Shell Companies and Foreign Accounts

Investigators believe the scam was professionally coordinated, involving:

• Creation of multiple shell firms with dummy directors.

• Use of foreign payment gateways and money mules to avoid detection.

• Renting of co-working spaces or small offices in residential colonies for call centre operations.

• Use of fake US-based toll-free numbers to appear legitimate to American victims.

Funds were then converted into Indian currency through hawala or small-value transfers, often broken into several layers to escape detection from RBI or banking compliance systems.

Why US Citizens Were Targeted

The choice to focus on U.S. residents stems from:

• High reliance on remote support services for digital products.

• Larger purchasing power, making high-ticket sales easier.

• Easier spoofing of well-known tech brands due to customer unfamiliarity with global customer support nuances.

• Weak detection by victims until months after the fraud, often too late for reversal.

Potential Impact on India’s IT Reputation

This incident once again shines a spotlight on the misuse of India’s outsourcing infrastructure by fraud rings, affecting the global trust in legitimate Indian tech and customer service companies.

Cybercrime experts warn that such scams not only damage India's international image, but may also prompt foreign regulatory scrutiny of genuine Indian BPOs and IT support businesses.

What Happens Next?

The ED will now follow the process of:

• Freezing accounts and assets found linked to the scam.

• Filing chargesheets under PMLA and IPC for money laundering, fraud, identity theft, and cybercrime.

• Coordinating with agencies like FEMA, RBI, Income Tax Department, and possibly even Interpol for global cooperation.

• Seeking custodial interrogation of key accused to map the entire money trail and identify foreign and domestic collaborators.

Ongoing Threat of Call Centre Fraud

India has seen multiple waves of fake tech support call centre scams, especially between 2016 and 2022, where citizens in countries like the US, UK, Canada, and Australia were duped of millions.

Despite several raids and arrests, these operations continue to resurface under new names and business setups, exploiting loopholes in telecom, banking, and identity verification systems.

Government’s Broader Crackdown on Cyber Fraud

The ED’s recent actions are part of a wider campaign by Indian authorities to curb cyber-enabled economic crimes, which include:

• Fake loan app rackets targeting Indian users.

• Crypto laundering networks.

• Online betting and gaming scams with cross-border fund flows.

As India strengthens its digital infrastructure, such steps are essential to preserve trust, national security, and international partnerships.

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