Ghaziabad Police Bust Fake Insurance Racket, Seven Held For Multi-Crore Scam

In a major crackdown, the Ghaziabad cybercrime cell has arrested seven individuals accused of running a sophisticated fake insurance racket that defrauded over 1,500 people across the country.  The accused allegedly earned around Rs 4.5 crore over the past two years by posing as representatives of well-known insurance companies.

The investigation began when officials traced a complaint back to a network operating out of Ghaziabad and Noida. What they uncovered was a carefully constructed scam, orchestrated by two former employees of a private financial services company—Aman Agarwal, 29, and Rahul Sharma, 23. While working for a company in Noida, the duo allegedly accessed and stored sensitive data from policyholders from different insurance firms. Then they resigned in 2021 and used this data to set up a fake insurance firm.

With five others—Aftab Alam, Rahul Yadav, Deepak Singh, Garvit Tyagi, and Jagjit Singh—they began calling unsuspecting customers, offering policy renewals, bonus claims, and new discounted schemes. The policyholders never suspected any foul play as the fraudsters had access to actual details like policy numbers, customer IDs, and so on.

The accused used fake SIM cards under fake names and forged documents to generate the company logos and policy receipts. They also opened bank accounts in the name of the dummy accountholders, according to a report by Hindustan Times. Customers believed that the paperwork was genuine, and accordingly made payments for policies, which, however, never existed.

According to the police, the gang operated across at least 10 states, including Uttar Pradesh, Delhi, Maharashtra, Bihar, Gujarat, Rajasthan, and West Bengal. Their lifestyle told a different story. The accused used the proceeds to buy high-end SUVs, rented luxury apartments, and spent freely. Nearly Rs 47 lakh has been frozen in multiple accounts suspected to be linked to the fraud. Police also recovered laptops, phones, forged insurance templates, and identity documents during raids.

All seven have been booked under sections of the Bharatiya Nyaya Sanhita for cheating, forgery, and running an organised crime syndicate, in addition to charges under the IT Act. One key accused, Mukesh, who allegedly supplied the fake SIMs, is on the run.

Police say the racket was dangerous not just because of the money involved, but because it eroded trust in the financial system. Officials are now working to identify more victims and trace where the stolen funds were moved. Authorities have urged people to verify every insurance call directly with the company and to never share personal details or make payments based on unsolicited phone offers.