₹138 Crore Mule Account Racket Busted in Karimnagar

In a major breakthrough against cybercrime , Karimnagar police have dismantled a sophisticated mule account network involved in routing nearly ₹138 crore of fraudulent funds, highlighting the growing scale of financial fraud in India. The crackdown, conducted under Operation Crackdown 1.0 , led to the identification of 24 suspects , with 13 arrested , including bank officials , coordinators, intermediaries, and account holders. Investigations revealed a structured racket where coordinators managed operations, middlemen recruited individuals with small commissions, and account holders handed over their banking credentials, enabling criminals to launder money generated through phishing and other online scams. Authorities found that a limited number of accounts, including those in RBL Bank , handled massive transaction volumes, routing funds through virtual platforms and transferring them abroad.

A key concern in the case is the alleged violation of KYC norms , with some bank employees facilitating the opening of fraudulent accounts. Reports indicate that account holders were paid upfront incentives along with transaction-based commissions, exposing systemic loopholes in financial oversight. Preliminary findings also point to international links , with suspected connections to foreign cybercrime syndicates, where funds were layered and moved across borders to evade detection. Police have registered cases under Bharatiya Nyaya Sanhita , including Section 112 (organized crime) and Section 318(4) (cheating), along with provisions of the IT Act, and have intensified efforts to track absconding accused and uncover the broader network.

This case underscores a rising national trend where mule accounts form the backbone of cyber fraud ecosystems, often exploiting unaware individuals. Authorities have issued a strong advisory urging citizens not to share or “rent” their bank accounts, warning that such actions could make them complicit in criminal activities. Victims are encouraged to report incidents promptly through the 1930 helpline , as enforcement agencies continue efforts to curb the expanding threat of digital financial crime.