Background and Timeline: The Mangaluru City Police achieved a major international victory on Thursday, February 5, 2026, by dismantling an offshore command center in Nepal. The operation was triggered by a January complaint from a Mangaluru resident who lost ₹1.38 crore to a sophisticated online fraud. A specialized team was dispatched to Nepal, where they successfully secured 11 Indian nationals operating a high-capacity scam hub.
Modus Operandi: The syndicate utilized “Native Language Social Engineering,” employing Indian nationals to call victims in India using WhatsApp, Instagram, and Telegram. They impersonated law enforcement officials for “digital arrest” scams and financial experts for fraudulent investment schemes. The stolen funds were immediately layered through multiple bank accounts and quickly converted into USDT cryptocurrency for distribution to accounts held in other foreign countries.
Victims and Financial Impact: The gang is linked to a massive fraud volume, with 128 complaints found on the NCRP linked to just 10 of their accounts, totaling an estimated loss of ₹30.7 crore. In total, the group utilized 624 different bank accounts for their operations, with one account alone showing transactions of ₹167 crore. The accused reportedly cheated victims of between ₹60 lakh and ₹1 crore every single day by leveraging psychological fear.
Investigation and Agencies Involved: Mangaluru Police Commissioner Sudheer Kumar Reddy led the operation, coordinating with Nepal Police to execute the raids. The investigation involved a deep audit of 4,580 NCRP complaints and transaction logs from the 624 identified mule accounts. The Nepal police have also taken several Chinese nationals into custody who were believed to be providing technical and financial guidance to the Indian operatives.
Arrests and Suspects: Eleven Indian nationals were arrested, including Makavan Vikram (25) of Gujarat, Soumyaditya Chattopadhyay (21) of Kolkata, Pupla Shiva Kumar Rao (32) of Jharkhand, and Gaurav Pandey (24) of UP. Five other Indian suspects remain absconding and a massive search is ongoing to trace their location. Police seized a laptop, 21 mobile phones, 20 SIM cards, and 20 debit/credit cards during the successful raid in Nepal.
Broader Implications and Trends: This case confirms the emergence of Nepal as a preferred “Near-Shore” hub for cybercrime syndicates targeting Indian citizens. It highlights the “Cryptocurrency Pivot,” where funds are moved through USDT to break the domestic audit trail within minutes of a fraud. Authorities have emphasized that “prompt reporting” within the golden hour is the only way for police to freeze funds before they are converted into crypto.