KYCKART Daily Brief — 24 September 2026 | KYC and Fraud Intelligence

Regulatory and Compliance (2 items)

1. ED Widens Hashpe Crypto Probe With Two More Arrests Under PMLA

The Enforcement Directorate arrested two more suspects, Syed Usman (alias Babu) and Dhamodharan Balachandran, on September 22, 2026, bringing the total to four arrests in the Rs 146 crore Hashpe cryptocurrency money-laundering investigation under Section 19 of the PMLA, 2002.

Entity involved: Hashpe (fake cryptocurrency trading platform), Hify Circle (bank account entity), Puducherry Cyber Crime Police (originating complaint)

2. SEBI Board Approves New Fraud Settlement Framework

SEBI's board approved a revamped settlement framework on September 24, 2026, with formula-based penalty amounts calibrated to violation severity. The framework allows settlement notices to be issued before show-cause notices and introduces a fast-track route for violations up to Rs 10 lakh, tightening the enforcement pipeline against market fraud and manipulation.

Entity involved: Securities and Exchange Board of India (SEBI)

New Fraud Typologies and Scams (2 items)

1. Fake Crypto Platform Hashpe Defrauds Investors of Rs 146 Crore via Celebrity Endorsements and Fake Token TCX

High risk

Operators marketed Hashpe as a legitimate cryptocurrency trading platform, luring investors with promises of high returns through a fabricated token called TCX. The scheme used celebrity endorsements, referral commission incentives, and cruise ship events to build credibility. Funds, Rs 16 crore in cash, Rs 10.52 crore via the Hify Circle bank account, and Rs 120 crore represented as TCX tokens, were diverted to personal accounts and invested in cryptocurrency and property to layer proceeds.

2. Aadhaar Harvesting Through Fake Welfare Drives Used to Open Fraudulent Bank Accounts

High risk

In Odisha, criminal syndicates set up fake welfare distribution drives, posing as subsidy schemes offering discounted rice, to collect victims' personal credentials and Aadhaar details. These were then used to open fraudulent bank accounts for mule account operations targeting the rural poor.

Institutional Impact (1 item)

1. SPIR 2026: Banks Earn Near-Zero Rating for Cybercrime Victim Support; Only 40% of Complainants Get FIRs

The Status of Policing in India Report (SPIR) 2026, based on a survey of 8,306 respondents across 16 states, found banks "refused to take accountability, or assist the victim through the recovery process," earning a 1 out of 5 rating. Only 6 of 15 cybercrime victims who complained had FIRs registered, and 27% of complainants paid bribes to police. The report flagged a 13% cybercrime incidence rate, with younger and less-educated populations at highest risk.

Impact: Only 20% of cybercrime cases reach courts; poor and rural victims face disproportionate barriers to recovery, exposing a structural gap in bank-side fraud support.

Fraud Briefing