KYC Fraud: GST arrests Pankaj Kumar of Adsum Advisory in Rs 13,000 scam syndicate

Hyderabad: Sleuths of GST intelligence, Hyderabad arrested one Pankaj Kumar- founder and director of Adsum Advisory service limited in a Rs 13,000 scam. The arrest of the founder is a blown lid to a massive online gaming syndicate.

The arrest is significant as the firm under scanner provides services for fraud detection and customer verification/ digital KYC verification.

Evidence gathered during investigation pointed to identification of an organized syndicate worth Rs 13,000 crore involved in operating illegal online gaming websites with assistance of associated fintech companies including payment aggregator, payment gateway and third-party technology service providers, wherein Pankaj Kumar is one of the masterminds responsible for fraudulent KYC verification of merchants and shell entities on behalf of RBI Regulated Entities like Payment Gateways and Banking as Payment Aggregator (BAΡΑ).Being director of a company responsible for KYC verification process, Pankaj Kumar failed to develop risk profiling of customers based on ownership and control structure and helped in onboarding of shell entities for UPI integration required for flow of money from online gaming.

He is one of the beneficiaries who received illegitimate proceeds of crime generated by online gaming syndicate.As per one estimate in the year 2025, gross valuation of online gaming in India is about USD 23 billion (two Lakh Crores).

DGGI, Hyderabad has launched massive crackdown on Online Gaming syndicates including action against associated Fintech companies, freezing bank accounts to the tune of Rs 100 crores and arresting masterminds. Further investigation is under progress.