Cross-Provincial Car Sales Fraud Syndicate Using Ponzi Scheme Dismantled, 11 Suspects Arrested

The Cyber Crimes Directorate of the East Java Regional Police has dismantled a national-scale online car sales fraud network operating in Kediri, Batam, and Samarinda, arresting 11 suspects and seizing assets worth billions of rupiah. “We secured the suspects in several regions, namely in Kediri, Batam, and Samarinda. A total of 11 suspects were secured at three different locations,” said the Director of Cyber Crimes at the East Java Regional Police, Commissioner Bimo Ariyanto, in Surabaya on Monday. The case came to light following a report from a victim in Taman Subdistrict, Sidoarjo Regency, who fell prey to an online car buying and selling scam on 15 February 2026. During the investigation, police uncovered that the group in Kediri acted as providers of bank accounts to hold the proceeds of crime. The perpetrators recruited residents by offering a one-litre bonus of cooking oil to those willing to open new accounts and activate mobile banking services. “The perpetrators DS, RV, YD, and DM were tasked with finding accounts and activating mobile banking by gathering residents, then giving them a one-litre bonus of cooking oil. These accounts were then handed over to the upper network,” Bimo stated. Meanwhile, the Batam group, consisting of MJ, AN, and BD, was responsible for finding potential victims through marketplaces and social media by posting photos and vehicle details stolen from other car sales platforms, using prices below market value. Once victims showed interest, communication was directed through private messages and specific phone numbers controlled by the perpetrators. The syndicate operated using a triangular scheme, connecting real sellers, the perpetrators, and buyers without them knowing each other’s identities. “Victims thought they were conducting normal transactions, but payments were directed to the syndicate’s holding accounts,” he said. The Samarinda group is suspected to be the main control centre of the network. AF is identified as the mastermind, RN as the recruiter and inter-network liaison, SH as the fund disbursal manager, while WY managed the final holding accounts. According to Bimo, the suspects in Samarinda are recidivists in narcotics cases who had recently been released from correctional institutions.