India News | J-K: Kashmir Cyber Police Uncovers Mule Account Network Behind Cyber Frauds

Srinagar (Jammu and Kashmir) [India], April 6 (ANI): Cyber Police Station Kashmir Zone, Srinagar, has unearthed a sprawling and sophisticated network involved in the creation and management of mule accounts, which have become critical tools in the execution of large-scale cyber fraud and financial crimes.

A mule account is an bank account used to receive and transfer illicit funds on behalf of others, often in return for a commission. These accounts--belonging to individuals, shell companies, and enterprises--are primarily scouted through social media platforms such as Telegram and Facebook, and are then remotely controlled by fraudsters operating from outside Jammu & Kashmir and even from overseas.

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The release notes, "Once these accounts are set up, they are integrated into illegal payment gateways and used by criminal syndicates to collect deposits from victims on fake investment websites, offshore betting and gambling platforms, and fraudulent stock trading portals. Funds received in these mule accounts are immediately layered and diverted to other accounts or converted into cryptocurrency to obscure the money trail."

According to the release, "Bulk payout facilities provided by banks are also being misused in this process to distribute proceeds quickly. These accounts typically remain active for a short span--often less than a week--before being flagged due to suspicious transactions. However, within this brief window, transactions worth crores of rupees are executed and funneled across a chain of accounts."

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The release notes that the Cyber Police Kashmir has also discovered that several local kingpins are managing the operations of these accounts, acting as recruiters and handlers. These individuals onboard people--often from economically weaker sections--by offering commissions for account access.

As per the release, "In response to a request by Cyber Police Kashmir, the Indian Cyber Crime Coordination Centre (i4C), MHA, New Delhi has shared a list of 7,200 mule bank accounts operating from the Kashmir Valley alone--created since January 2025. This figure is expected to be much higher as the investigation progresses."

"To date, Cyber Police Kashmir has registered four FIRs, and more are underway. Preventive security action has been initiated against 21 individuals, 19 of whom belong to Srinagar district," the release said.

According to the release, "The hotspots for mule account activity include areas like Mehjoor Nagar, Natipora, Nowgam, Lasjan, Padshahibagh, Nowhatta, Khanyar, Rainawari, Soura, Batmaloo, Noorbagh, Qamarwari, Parimpora, Mujgund, Bemina, among others. Similar activities have been reported in other districts including Ganderbal, Kangan, Sumbal, Bandipora, Baramulla, Pulwama, Anantnag, Kulgam, and Shopian."

The release says that the Cyber Police Station Kashmir Zone, Srinagar, has strongly advised citizens "not to sell or rent their bank accounts, company registration certificates, or Udhyam Aadhaar registration documents to any individual or entity. Any such involvement in laundering illicit funds could result in serious legal consequences, including arrest under provisions related to organised crime and cyber fraud."

According to the release, "Banks are being encouraged to strengthen checks to detect misuse of accounts for illegal payment gateways."

The release notes, "Citizens are urged to report any suspicious cyber activity immediately via helpline 1930 or online at www.cybercrime.gov.in. Cyber Police Kashmir remains fully committed to dismantling these networks and securing the financial ecosystem of the Valley."

Earlier, discussing cybercrime and links between drug sale and terrorism in the city, Senior Superintendent of Police (SSP) Srinagar, Imtiyaz Hussain, shed light on the alarming growth of fraud cases and the links between drug trafficking and terrorism.

Hussain reported that over 7,200 mule accounts have been opened in recent times, contributing to a significant spike in cyber fraud.

"Cyber fraud of late has been becoming a huge menace. We have 7,200 mule accounts in our knowledge. We have lodged four FIRs regarding this under organised crime. Out of the accounts we have identified, 20-21 have been arrested," Hussain said, emphasising the importance of a regulatory mechanism to monitor suspicious bank accounts.

He also highlighted that in 2025 alone, law enforcement authorities had recovered over Rs 70 lakh from cybercrime victims. "The recovered money has already been released through the courts," he added.

Hussain also drew attention to the growing connection between drug trafficking and terrorism. "Last month, we seized 8 kg of heroin in Srinagar and found a direct link to terrorism. The heroin was sourced from Pakistan, and the money from its sale was used to finance terrorism," he explained. (ANI)

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)