CloudSEK’s report uncovers a money‑laundering scheme by Chinese scammers who exploited India’s UPI ecosystem using fraudulent payment gateways. The operation began in September 2023, when cybercriminals promoted a malicious app impersonating a Tamil Nadu–based bank with $23M in revenue. The fake gateway enabled criminals to process illicit transactions, funneling victims’ money through layered digital channels. This scheme highlights growing risks within India’s digital payment landscape and the need for stronger authentication, monitoring, and user awareness to prevent large‑scale financial fraud.

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