Mule Accounts Sebi Are Becoming The Favorite Weapon of Scammers, Thus People Are Being Defrauded of Lakhs

Mule Accounts Sebi

Mule Accounts Sebi Are Becoming The Favorite Weapon of Scammers, Thus People Are Being Defrauded of Lakhs

Cases of banking fraud are increasing rapidly. An increase in cases of malware attacks and phishing has also been seen. Mule accounts are mostly used for this. RBI is continuously making efforts to stop this.

Actually, mule accounts are accounts that are opened only for carrying or illegal activities. Mule accounts make it easier to carry out front-running or circular trading. This type of account is registered in the name of one person. But, it is used by many others.

Mule Account Weapon of Cybercrime

RBI has also tried to stop these mule accounts which have become weapons of cyber crime. According to Biocatch’s report on digital banking fraud, there were documented frauds worth Rs 302 billion in the year 2023. With this, 13 thousand 530 cases were reported in the banking system and there was a 49 percent increase in fraud cases.

At the same time, during this period, fraud was also done through UPI payments. Along with this, phishing and malware attacks were carried out. They were cheated on the pretext of various kinds of investment and part-time job offers.

How Fraud is Done with Mule Account?

Let us talk about how this fraud happens.  For this, first of all, some money is made available to the investors by luring them with huge returns. After this, when trust is established, a big investment is made from them.

A mule account is used for this. Scammers are not easily able to get hold of these accounts. 126 such accounts have recently surfaced in Bengaluru.  This shows that mule accounts have become a big problem in the fraud ecosystem.

RBI Changed KYC Rules for Prevention

The Reserve Bank of India (RBI) had recently made changes in the Know Your Customer rules in view of the increasing problem of Mule Accounts. Its purpose is to ban Mule accounts. Continuous efforts are being made to stop mule accounts in the Indian banking system.

However, the report claims that only 9 out of 10 Mule accounts have been identified at present.

About The Author:

Yogesh Naager is a content marketer who specializes in the cybersecurity and B2B space.  Besides writing for the News4Hackers blog, he’s also written for brands including CollegeDunia, Utsav Fashion, and NASSCOM.  Naager entered the field of content in an unusual way.  He began his career as an insurance sales executive, where he developed an interest in simplifying difficult concepts.  He also combines this interest with a love of narrative, which makes him a good writer in the cybersecurity field.  In the bottom line, he frequently writes for Craw Security.


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