Major Mule Account Network Fuelling Cyber Frauds busted, 21 arrested

SRINAGAR, Apr 6: The Cyber Police Station, Kashmir Zone, Srinagar, has uncovered a vast and sophisticated network behind the creation and operation of mule bank accounts — a key enabler in large-scale cyber frauds and financial crimes.
Police said that it has identified 7,200 mule bank accounts operating from the Kashmir Valley alone, created since January 2025. As many as 21 individuals, 19 of whom belong to Srinagar district, have been arrested during the investigation of four FIRs registered by the Cyber Police.
A mule bank account is an 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. Jammu travel guide
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.
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, Senior Superintendent of Police, Srinagar, Imtiyaz Hussain said during a press conference.
He said 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,” he said.
SSP said 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,” he said.
He added that 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.
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 organized crime and cyber fraud.