The bogus call centre operated from rented homes in Bengaluru’s HSR Layout and BTM Layout.

A massive cyber fraud operation masquerading as a legitimate BPO has been dismantled in Bengaluru, with 16 individuals arrested for allegedly targeting US citizens through an elaborate online extortion scheme known as "digital arrest," police revealed on Tuesday.

The scam was uncovered on October 7 when police raided a call centre operating under the name Cybits Solutions Private Limited, news agency PTI reported. The setup, which appeared to be a business process outsourcing firm, turned out to be a front for cybercriminal activity. Investigators say 20 to 25 young jobseekers had been duped into joining the fake company under the pretense of working in a legitimate tech job.

These recruits were sourced through online job platforms like LinkedIn and WorkIndia and trained remotely in social engineering and online fraud, a police official said, as per the report.

Once trained, the fraudsters accessed personal data of unsuspecting individuals, mostly Americans, through the internet. They then contacted these targets via internet calls, posing as agents from US law enforcement or federal agencies.

Victims were falsely told they were under investigation for drug trafficking or money laundering. Threatened with arrest, frozen accounts, or deportation, they were pressured into paying money to “settle” the charges.

This psychological trap is what’s commonly referred to as a “digital arrest”. Victims are made to believe they are in legal trouble, and then scammed into paying fines or bail money to avoid jail, police explained.The bogus call centre operated from rented homes in Bengaluru’s HSR Layout and BTM Layout. Employees were offered food, accommodation, cabs, and even underwent a three-week crash course that included scripted dialogues and knowledge about US law enforcement agencies such as the Border Security Force and Customs.

According to police, the criminals used company-run live server software and online tools like Justpaste.it to store and share the fake arrest scripts. Calls were routed via internet-based applications to create a convincing facade.

A raid on the premises led to the seizure of 41 computers, 25 mobile phones, networking gear, attendance records, and digital tools used in the scam.

Those arrested include eight individuals from Maharashtra, four from Meghalaya, and four others from Odisha, Madhya Pradesh, West Bengal, and Gujarat.

The investigation is ongoing, and authorities are probing possible links to similar international scams.