Woman Arrested for Routing ₹70.85 Lakh in Cyber Fraud Through Mule Bank Account

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Woman Arrested for Funneling ₹70.85 Lakh in Suspected Cyber Fraud Proceeds

A recent crackdown by the Karnataka Cyber Command has led to the arrest of a woman accused of utilizing a bank account to funnel approximately ₹70.85 lakh in suspected cyber fraud proceeds.

Alleged Mule Account Used to Receive and Transfer Illicit Funds

The account in question was allegedly used as a “mule” account, a term referring to a bank account used to receive, layer, and transfer illicit funds quickly to avoid detection.

According to investigators, the accused obtained the account details, including net banking credentials and the linked mobile number, from a man known to her family in December 2025.

She claimed the account would be used for legitimate expenses related to foreign travel and adventure activities, assuring the account holder that applicable taxes would be paid. However, the mobile number linked to the account was later changed without the account holder’s knowledge.

Transactions Totalling ₹70,85,137 Routed Through Account

On February 3, 2026, transactions totaling ₹70,85,137 were routed through the account, which are suspected to be part of a larger cyber fraud operation.

The misuse came to light after officials from the cybercrime wing visited the complainant’s residence for verification, acting on alerts received through the National Cybercrime Reporting Portal (NCRP).

Statewide Drive Targets Mule Bank Accounts and Organized Networks

This case is part of a broader statewide drive by the Karnataka Cyber Command targeting mule bank accounts and the organized networks that operate them.

Since December 2025, police have identified 60 organized mule account cases.
Detecting 869 mule bank accounts and linking 8,788 complaints to these accounts on NCRP.
Fraud transactions worth ₹85.05 crore have been traced, with ₹13.43 crore successfully put on hold.

Investigations Reveal Systematic Collection of Identity Documents

Investigations have revealed that mule herders systematically collect identity documents from unsuspecting individuals and open multiple bank accounts, often in the names of relatives.

These accounts are then operated like a parallel financial network to move illicit funds across jurisdictions.

Crackdown Continues with Focus on Dismantling Remaining Mule Networks

So far, 68 key accused have been arrested in connection with mule operations.

Police have executed 32 search warrants and conducted 35 searches across different parts of the state, seizing 68 ATM cards, 32 passbooks, 35 mobile phones, 37 cheque books, 28 SIM cards, and several other incriminating materials.

The scale and structure of the network indicate a business-like model used to support multiple cyber fraud modules simultaneously.

Authorities have warned that many individuals unknowingly become part of cybercrime chains by sharing bank credentials, SIM cards, or identity documents.

Once an account is used as a mule, the account holder’s risk of being implicated in the fraud increases.

Cyber Command Urges Public to Report Suspicious Requests Immediately

The Cyber Command has urged the public not to share bank login details, OTPs, SIM cards, or account access with anyone, including acquaintances, and to report suspicious requests immediately.

The crackdown is set to continue in the coming weeks, with a focus on dismantling remaining mule networks and tracing the masterminds behind the fraud operations.