Fraud Briefing

1. ED FY26 asset attachments hit record ₹81,422 crore as arrests drop 27%

ED's FY2025-26 annual report shows attached assets hit a record ₹81,422 crore even as arrests declined 27%. Raids under PMLA nearly doubled to 2,892 and chargesheets jumped to 812 versus 457 in FY25.

Entity involved: Enforcement Directorate

2. ED formally designates crypto fraud and terror financing as new primary enforcement domains

ED Director Rahul Navin announced on May 1, 2026 that cryptocurrency fraud, terror financing, and cyber-enabled crimes replace traditional bank and real estate fraud as priority enforcement areas. The agency cited a 94% conviction rate and ₹63,142 crore restituted to fraud victims.

Entity involved: Enforcement Directorate; HPZ Token scam (₹2,200 crore probe ongoing)

3. CBI extradites bank fraud fugitive Kamlesh Parekh from UAE

CBI, coordinating with MEA and MHA, extradited Red Notice subject Kamlesh Parekh from the UAE on May 1, 2026. Parekh is accused of large-scale banking fraud causing hundreds of crores in losses to an SBI-led bank consortium.

Entity involved: State Bank of India (SBI) - consortium of banks

4. NBFCs seek access to RBI Central Fraud Registry as H1 FY26 fraud surges to ₹21,515 crore

NBFCs are lobbying RBI for access to its Central Fraud Registry after fraud amounts in the banking sector surged to ₹21,515 crore in H1 FY26 (April-September 2025), up from ₹16,569 crore the previous year. Access may require an amendment to the RBI Act.

Entity involved: NBFC sector; RBI

1. Panchkula insurance impersonation gang uses real policy data from data leaks to defraud victims

High risk

Fraudsters posing as officials of a reputed insurance company called victims with accurate policy details obtained through data leaks to gain trust, then demanded money as a 'final instalment' and 'tax payment' for policy maturity. Gang operated via fake SIM cards, rented mule bank accounts, and a fake Delhi call centre. Four arrested.

2. AI-powered digital lending scams layer deepfakes and fake police calls over advance-fee fraud

High risk

Scammers deploy AI-generated voices, deepfake video calls, and fake police 'digital arrest' scenarios to coerce victims into paying advance fees framed as GST, insurance, or processing charges before fake loan disbursals. Victims are targeted via apps requesting excessive device permissions.

3. HPZ Token probe reveals crypto used to obscure ₹2,200 crore money trail beyond PMLA detection

High risk

Shell firms and payment gateways route illicit funds through crypto channels. The HPZ Token scam (₹2,200 crore) uncovered cross-border links where crypto obscures money trails beyond traditional PMLA monitoring.

1. PNB ₹2,434 crore fraud surfaces; shares under pressure

Impact: Fresh ₹2,434 crore fraud uncovered at Punjab National Bank; investor confidence under strain with shares declining. Adds to PNB's historical fraud liability. Legal and regulatory action expected.

2. Bank fraud amount triples to ₹36,014 crore in FY25 despite fewer cases: RBI report

Impact: RBI's Report on Trend and Progress of Banking (FY2024-25) shows alleged fraud amounts tripled to ₹36,014 crore while case counts fell - indicating a shift toward fewer but larger, high-value frauds.

3. ED restitutes record ₹63,142 crore to fraud victims in FY26

Impact: Record ₹81,422 crore in attached assets signals escalating exposure of institutional fraud. Restitution of ₹63,142 crore to victims - homebuyers, investors, banks - signals growing legal consequence for fraudulent entities.