Lucknow: Basti police and the district cyber cell busted an interstate fraud gang that allegedly targeted people across several states by luring them with easy loan offers and then blackmailing them using morphed obscene photographs. Four members of the gang were arrested on Thursday, while three others remain on the run.Police seized seven mobile phones, seven newly issued fake SIM cards and three motorcycles from the accused. The operation was carried out under the district police’s zero-tolerance campaign against cybercrime after investigators developed leads through the Pratibimb portal and local intelligence inputs.The joint team of Kotwali police and the cyber cell arrested the accused from Dhobi ghat in Amahat, Basti. An FIR (No. 372/2026) has been registered at Kotwali police station under multiple sections of the Bharatiya Nyaya Sanhita, the Information Technology Act and the Telecommunications Act, 2023.According to investigators, the gang used WhatsApp and Telegram to approach people with promises of quick and hassle-free loans. Once the recipient clicked on a link or followed instructions sent by the fraudsters, the accused allegedly gained access to the person’s mobile phone gallery and contact list.Police said the gang then used victims’ photographs to create morphed obscene images through the PicsArt application and threatened to circulate them among friends, relatives and other contacts unless money was paid. The accused allegedly relied on SIM cards obtained in other people’s names to hide their identities and continue operations even after complaints were filed.The investigation has so far linked the gang to 12 complaints registered on the National Cyber Crime Reporting Portal (NCRP). Victims were traced to several states, including Maharashtra, Kerala, Karnataka, West Bengal, Jharkhand, Tamil Nadu, Madhya Pradesh and Andhra Pradesh.According to police, forced payments identified in the complaints examined so far total Rs 35,725. However, during questioning, the accused allegedly disclosed that the gang may have extorted between Rs 12 lakh and Rs 15 lakh from victims over time. Financial transactions and digital evidence are being scrutinised to determine the full scale of the racket and identify additional victims.One of the arrested accused, Pradyumn Chaurasia (25), allegedly supplied SIM cards used for the fraud. The accused reportedly told police that he had earlier provided them with 30-40 SIM cards, which were frequently replaced after numbers were blocked following complaints.The other arrested accused were identified as Nikhil Singh (19), Gaurav Singh (18) and Afroz (19), all residents of Basti district. Police have also named Lucky Singh, Ashwani Singh and Piyush Singh as wanted accused.Police said the gang had assembled at Dhobi ghat on Thursday to obtain another batch of fake SIM cards when they were intercepted and arrested. People have been advised to avoid unsolicited loan offers and immediately report cyber fraud or online blackmail through the national cybercrime helpline 1930 or the cybercrime reporting portal.