Mule Account Racket Busted: Four Arrested Including Bank Officials

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Cybercrime Unit Dismantles Mule Account Network, Arrests Four Suspects

A recent operation by the Cyberabad Cyber Crimes Wing has led to the disruption of a sophisticated mule account network, resulting in the arrest of four individuals, including two bank officials. The suspects allegedly facilitated cyber fraud transactions through suspicious bank accounts, with investigators currently probing over 30 accounts linked to the scheme.

Accused Individuals and Modus Operandi

According to authorities, the accused individuals were motivated by the promise of easy money and operated in a coordinated manner. The group allegedly conspired to open bank accounts using forged documents, including a fake rental agreement for a shutter in the Pahadishareef area. The fabricated documents were used to open a current account in the name of “Star Agro Industries.”

Records show that approximately ₹6,67,565 was credited into the account in October 2025 as part of transactions linked to online fraud.

Police reported that a portion of the profits generated from the account operations was given to the accused as commission, while the involvement of bank officials made it easier to manage the accounts. The suspects were detained following a tip-off and subsequently disclosed details about their roles during interrogation.

Ongoing Investigation

The Cybercrime Wing is currently investigating whether additional suspicious accounts were opened in the same branch, with preliminary findings suggesting that over 30 mule accounts may have been operated from a single branch. Experts believe that such networks are used to quickly route and layer money obtained through online frauds, often using fake companies to conceal banking identities.

The police are working to identify victim-related transactions, freeze proceeds of crime, and examine banking records, call detail records, and digital evidence. An official from the cybercrime wing emphasized the importance of strict compliance with Know Your Customer (KYC) norms, warning that bank employees found colluding in opening mule accounts would face serious consequences.

The investigation is ongoing, with further arrests and assessments of financial losses expected upon completion. Authorities have pledged to take action based on the findings, highlighting the need for robust security measures to prevent similar schemes in the future.