Indian Police Bust Fake Forex Trading Call Center, Arrest Three in Madhya Pradesh Cyber Fraud Raid

Sehore, India, August 17, 2026

Police in the central Indian state of Madhya Pradesh have dismantled an illegal call center operating a fraudulent foreign exchange trading application, arresting three suspects linked to an interstate scam that has already defrauded victims of more than 2 million rupees (approximately $24,000), with investigators warning the total could climb into the tens of millions.

Background

Officers from Sehore Kotwali police station conducted a raid on a premises in Sheetal Bihar Colony in Sehore town, where the operation had been running for about six months.

The team recovered five computers, one laptop, 10 mobile phones, numerous bank passbooks and checkbooks, and SIM cards.

The three arrested men were identified as Satish Mewada, described as the main accused, and Kalyan Mewada, both residents of Bhainsarod village in neighboring Shajapur district, and Shubham Verma of Semra Dangi village in Sehore.

Case Details

The case was registered on August 13 under Crime Number 587/26, invoking Section 318(4) of the Bharatiya Nyaya Sanhita, India’s updated criminal code that replaced the colonial-era Indian Penal Code.

According to the official statement from the Sehore Superintendent of Police’s office, the gang used a homemade fake application called “FX Trade” to lure people with promises of high returns on investments.

Victims were persuaded to transfer money into “mule accounts”, rented or hijacked bank accounts controlled by intermediaries, after which the funds were quickly withdrawn through ATMs to obscure the trail.

Modus Operandi

Local reporting and police details indicate the call center employed around six staff members, each tasked with contacting roughly 100 potential victims daily.

Mobile numbers were allegedly sourced from blood donation camps, with a focus on relatively affluent individuals.

One early complaint that triggered the probe came from Abhishek Mukati of Shajapur district. He told police he was approached at Sehore bus stand under the pretext of loan assistance; the main accused obtained his bank documents, ATM card and SIM, later using the account for fraudulent transactions.

Impact

An examination of the National Cybercrime Reporting Portal (NCRP) revealed complaints linked to the accounts from multiple states across India, confirming the interstate nature of the network.

Police said the verified losses already exceed 2 million rupees, though further analysis of the seized devices and ledgers could push the figure into crores of rupees.

Response

The raid forms part of a broader push by Indian law enforcement against investment and trading scams that have proliferated in recent years.

Fake forex and stock-trading apps, often paired with boiler-room style call centers, exploit public interest in quick financial gains.

Authorities routinely urge citizens not to share bank details or transfer money on the basis of unsolicited investment tips, and to report incidents immediately via the national cyber helpline 1930 or the NCRP portal.

Investigation

Investigation into the Sehore network continues, with officers examining the digital evidence for additional associates and a fuller accounting of the money trail.

The arrested men are expected to be produced in court as formal charges proceed.