NCCIA Busts Massive Foreign-Run Ponzi Scheme in Karachi’s DHA

The National Cyber Crime Investigation Agency (NCCIA) conducted a major operation in Karachi on Thursday. Working with intelligence agencies, law enforcement, and Ehsaas institutions, the agency dismantled a well-organised Ponzi scheme network. The raid took place in the upscale Defence Housing Authority (DHA) area, targeting outlets in Phase 1 and Phase 6 (Khayaban-e-Ittehad).

NCCIA: The Raid & Arrests

Authorities detained several foreign nationals during the coordinated action. These individuals allegedly managed an extensive fraudulent network that targeted thousands of unsuspecting investors. During the operation, officials recovered “important and sensitive data” from the suspects.

This seized information is currently under forensic examination. Investigators believe this data will serve as the primary evidence for further legal action. Furthermore, the authorities have expanded the scope of the investigation. They are now working to identify and apprehend additional suspects linked to this criminal ring.

Impact & Mechanism of the Fraud

Preliminary inquiries reveal that the network caused “serious financial losses” to thousands of people across the country. The suspects operated a classic Ponzi scheme model. In this form of fraud, operators lure investors by promising high, quick returns.

Instead of generating legitimate profits through business activity, the organisers use money from new investors to pay earlier ones. This creates a false belief in the success of a non-existent enterprise. While this model originated in the 1920s with Charles Ponzi, it continues to thrive today through digital and online platforms.

A Growing Trend of Financial Scams

This crackdown is part of an ongoing battle against financial fraud in Pakistan. In July 2025, the NCCIA conducted a similar raid on a factory in Faisalabad. That operation led to the arrest of 149 suspects, including 48 Chinese nationals.

Additionally, in February 2025, the National Accountability Bureau (NAB) Lahore launched its own crackdown against various entities involved in financial scandals. These fraudulent schemes consistently draw in thousands of victims by promising unrealistic returns.

Authorities have confirmed that further legal action against the Karachi network is imminent. Investigations remain ongoing to uncover the full scale of the operation.