Karnataka Police Busts ₹85 Crore Cyber Fraud Ring, Arrests 68 Individuals
Karnataka Authorities Dismantle Massive Cyber Fraud Network, Arrest 68 Individuals
In a significant blow to cybercrime operations in India, Karnataka’s specialized cyber command has apprehended 68 individuals in connection with a large-scale online scam worth ₹85.05 crore. The arrests were made following a coordinated operation conducted between December 2025 and February 2026, which uncovered a complex web of fraudulent bank accounts used to launder funds siphoned from victims across the country.
Investigation Reveals Complex Web of Fraudulent Bank Accounts
According to investigators, a total of 869 bank accounts linked to cyber fraud were identified during the probe. These accounts were allegedly opened using forged or fraudulently obtained identity credentials and were controlled by different modules of the network to receive, transfer, and withdraw money quickly to evade detection. The operation resulted in the registration of 60 criminal cases under various laws, including cheating, forgery, identity theft, and information technology laws.
Arrested Individuals Were Account Holders, Facilitators, and Cash Handlers
The investigation revealed that the arrested individuals were primarily account holders, facilitators, and cash handlers who allowed their bank accounts to be used for illegal transactions in exchange for commissions. In some cases, the accused withdrew cash from ATMs immediately after funds were credited and handed it over to higher-level operators. During the searches, investigators seized ATM cards, mobile phones, and other electronic devices believed to have been used for coordinating transactions and communicating with other members of the network.
Digital Evidence Being Analyzed to Identify Additional Beneficiaries
Digital evidence recovered from the devices is being analyzed to identify additional beneficiaries and the masterminds behind the operation. Preliminary findings indicate that the mule accounts were used in a range of cyber frauds, including impersonation scams, investment fraud, OTP-based theft, and fake customer care schemes. The layered movement of funds through multiple accounts made it challenging for victims to trace the money and delayed recovery efforts.
Network Exploited Economically Weaker Sections
The network allegedly exploited individuals from economically weaker sections by persuading them to open bank accounts or share account access in return for small payments. These accounts were then used to receive fraudulent proceeds before the money was rapidly transferred or withdrawn. Investigators are now working to map the financial trail, freeze remaining suspect accounts, and identify inter-state links.
Cybercrime analysts noted that mule accounts remain a critical enabler of online fraud, allowing perpetrators to distance themselves from the actual flow of funds. The large number of accounts identified in the operation points to a structured system designed to sustain high-value scams. Authorities have urged citizens to exercise caution and not share bank account details, debit cards, or OTPs with anyone, and to avoid allowing others to use their accounts for transactions.
Victims Advised to Report Incidents Immediately
Victims of cyber fraud have been advised to report incidents immediately to the national cybercrime helpline 1930 or file complaints on the cybercrime portal to improve the chances of freezing funds before they are withdrawn. Further arrests are likely as the investigation expands and digital forensics continues to uncover additional links in the mule account network.
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