Karnataka Cracks Down on Digital Fraud: 8,788 Complaints Linked to 869 Mule Accounts Exposed
Karnataka Police Uncover Massive Digital Fraud Network, Freezing Over ₹13 Crore in Suspicious Transactions
In a significant blow to organized online fraud networks, Karnataka Police have identified 869 mule bank accounts linked to 8,788 cybercrime complaints, resulting in the freezing of over ₹13 crore in suspicious transactions.
The Investigation
The statewide operation, spearheaded by the Cyber Command, has led to the arrest of 68 key suspects and the seizure of incriminating materials, including mobile phones, passbooks, ATM cards, and PAN cards.
The Cyber Command, established in April 2025 and fully operational since September 2025, has centralized the reporting system for nearly 45 cybercrime police stations across the state.
The Impact
This unified approach has enabled investigators to overcome previous challenges, such as fragmented data and jurisdictional issues, which often hindered timely investigations.
By integrating data from multiple districts, authorities can now track funds as they move across state borders, facilitating more effective tracing and freezing of suspicious transactions.
Understanding Mule Accounts
Mule accounts, a crucial component of digital fraud networks, are bank accounts opened by individuals, often through deception or small financial incentives, to channel stolen funds.
Investigators found that funds from multiple states were routed into these accounts and layered through successive transfers, making it difficult to identify the masterminds.
The Cyber Command’s Strategy
A specialized team of trained “cyber commandos” plays a vital role in the Cyber Command’s strategy.
These officers possess expertise in digital forensics, dark web monitoring, cryptocurrency transaction tracking, and data recovery.
Authorities acknowledge that cybercrime has evolved into a highly technical domain, requiring specialized skills beyond conventional policing.
“The current approach focuses on early detection and immediate freezing of suspicious funds, enabled by real-time coordination with banking institutions.”
The Way Forward
While the freezing of over ₹13 crore and the identification of hundreds of mule accounts is a significant achievement, officials caution that cybercriminal tactics are constantly evolving.
New forms of investment scams, “digital arrest” frauds, fake customer care calls, and loan app scams continue to emerge.
The linking of 8,788 complaints to 869 mule accounts signals a strategic shift in Karnataka’s fight against cybercrime, relying on technology, coordination, and proactive enforcement.
Authorities believe this centralized model could serve as a template for other states grappling with the growing threat of digital fraud.
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