Cyber Fraud Trail: Top 10 US States for Mule Account Activity
India’s Mule Account Epidemic: A Growing Cybercrime Concern
A recent analysis by the Indian Cyber Crime Coordination Centre (I4C) has identified 10 states as high-risk areas for “mule accounts,” which are bank accounts used by cybercriminals to launder illicit funds. Maharashtra, Uttar Pradesh, and Rajasthan are among the top hotspots, with other states like Haryana, Delhi, and Karnataka also featuring prominently on the list.
Mule Accounts and Cybercrime
Mule accounts are typically controlled by individuals who knowingly or unknowingly receive, transfer, or withdraw stolen funds on behalf of cybercriminals. These accounts are designed to conceal the origin of the stolen money and create multiple transaction layers, making it challenging for law enforcement agencies to track the proceeds.
Hotspots for Mule Account Activity
According to I4C data, Jamtara and Nuh districts have emerged as major hubs for mule account activity. In Jamtara, over 350 mule accounts were detected in 2025, with approximately ₹7 crore withdrawn from these accounts using ATMs and cheques. In Nuh, authorities identified over 1,000 mule accounts, with withdrawals amounting to ₹18 crore.
Government Response
The Central Bureau of Investigation (CBI) has identified nearly 8.5 lakh mule accounts opened across 700 bank branches nationwide in 2025. This has prompted banks to enhance their due diligence norms and monitoring systems to detect suspicious account openings and transactions.
To raise awareness about the risks associated with mule accounts, banks have begun distributing comic booklets featuring characters like Chacha Chaudhary and Sabu to new account holders. The material explains how mule accounts are misused and warns customers against allowing others to operate their bank accounts.
Call to Action
The Indian government has urged states to strengthen vigilance, boost digital literacy campaigns, and improve coordination between banks and law enforcement agencies. Citizens have been advised not to share banking credentials or agree to transfer money on behalf of unknown individuals.
As cybercrime cases continue to rise, dismantling mule account networks has become a critical component of India’s strategy to curb digital financial crimes. The government’s efforts to raise awareness and enhance coordination between banks and law enforcement agencies are crucial in combating this growing threat.
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