Fraud Briefing

1. RBI cancels Certificate of Registration of 150 NBFCs; 75 in West Bengal, 67 in Delhi

RBI cancelled the Certificate of Registration of 150 NBFCs with immediate effect. 75 were registered in West Bengal and 67 in Delhi, with others spanning Telangana, Bihar, MP, Tamil Nadu, and Haryana.

Entity involved: 150 NBFCs (primarily Delhi and West Bengal-based)

2. RBI penalises 5 banks in 5 days for KYC and compliance lapses; Yes Bank fined ₹31.8 lakh

Following inspections conducted May 4-8, 2026, RBI imposed monetary penalties including Yes Bank (₹31.8 lakh) for failure to properly verify customer KYC details. Two additional banks in MP and Gujarat received penalties on May 14 specifically.

Entity involved: Yes Bank; two unnamed banks (Madhya Pradesh, Gujarat)

3. ED raids SRMF Trust land fraud suspects for using forged authority letters and fake seals

ED conducted searches against G Ram Chandra Mohan and Akash Malviya for allegedly using forged authority letters, fabricated resolutions, and fake seals to illegally sell SRMF Trust properties — including a Noida plot sold at ₹16 crore versus a ₹33.61 crore circle rate.

Entity involved: Spiritual Regeneration Movement Foundation (SRMF); G Ram Chandra Mohan; Akash Malviya

4. I4C and RBI Innovation Hub sign MoU to deploy MuleHunter.ai for real-time mule account detection

I4C and the RBI Innovation Hub (RBIH) formally signed an MoU to deploy AI tools including MuleHunter.ai across Indian banks, using I4C's Suspect Registry data to detect and freeze mule accounts in near-real-time.

Entity involved: I4C (Ministry of Home Affairs); Reserve Bank Innovation Hub (RBIH)

1. Six predatory loan apps use deepfake videos and fake police calls to coerce borrowers; I4C orders removal

High risk

Six loan apps aggressively promoted via Facebook, Instagram, and messaging apps promised instant approvals. After disbursement, they used AI-generated voices, deepfake videos, and fake police calls to coerce exorbitant repayments, while harvesting Aadhaar details, contacts, photos, and camera access from victims' devices.

2. Mule account networks cited as the #1 fraud threat by 48% of Indian enterprises: India Fraud Report 2026

High risk

Mule account networks — where compromised or recruited bank accounts are used to layer and launder cyber fraud proceeds — are cited by 48% of Indian enterprises as the most difficult fraud typology to detect. Banking sector fraud losses reached ₹36,014 crore in FY2024-25.

3. Fake SIM cards and mule accounts route ₹77 crore in cyber scam proceeds

High risk

Fraudsters linked thousands of mule bank accounts to SIM cards obtained on fake or forged documents to layer cybercrime proceeds. The syndicate used this infrastructure to route funds from investment fraud and digital arrest scams across multiple states.

1. CBI arrests Lakhan Jaiprakash Jagwani for running illegal call centres defrauding US nationals of USD 8.5 million

Impact: CBI arrested Jagwani for running illegal call centres since 2022 from Delhi/Noida, impersonating US DEA/FBI/SSA officials to defraud US nationals of USD 8.5 million (~₹70 crore). Significant cross-border financial crime and legal exposure for India's call centre ecosystem.

2. Delhi police bust ₹8 crore international cyber fraud syndicate; 14 arrested

Impact: 14 accused arrested in connection with a work-from-home job scam that defrauded victims of ₹8 crore. Syndicate operated international call-centre-style infrastructure. Legal action ongoing.

3. Software engineer Ravi Rathore arrested for running ₹100 crore multi-state fake trading app scam

Impact: Software engineer who had quit a ₹30 lakh/year job allegedly ran a ₹100 crore fake trading app fraud across multiple states. Legal action initiated. Case highlights insider technical expertise as a risk factor in fintech fraud architecture.