Operation Crackdown 1.0: Telangana Police Bust Mule Network Linked to 9,451 Cyber Frauds

In a sweeping crackdown on cybercrime facilitators, the Telangana Police carried out a statewide enforcement drive called “Operation Crackdown 1.0,” targeting individuals who allegedly helped cyber fraudsters operate mule bank accounts used to move stolen money. The coordinated operation was conducted simultaneously across Telangana on February 25 , with police focusing on suspicious accounts identified through nationwide cybercrime data.

Investigators began by analysing complaints recorded on the National Cyber Crime Reporting Portal (NCRP) , which revealed a pattern of fraudulent financial transactions routed through bank accounts opened in Telangana. Acting on these findings, authorities deployed 137 special police teams comprising 512 personnel , who conducted surprise inspections at 137 bank branches across the state.

During the drive, officers examined 1,888 suspected mule accounts that were linked to 9,451 cybercrime cases reported across India. According to preliminary estimates, these accounts were involved in financial fraud amounting to nearly ₹100 crore . Mule accounts are typically opened in the names of individuals who allow cybercriminals to use their banking facilities to receive and transfer illicit funds in return for a commission.

As the investigation unfolded, police registered 549 FIRs and identified 626 suspects believed to be part of the network. So far, 208 people have been arrested , including individuals from different professions. Among those taken into custody were 15 women, seven students, two lecturers, and an employee of the electricity department . Police said several of the accused knowingly allowed their bank accounts to be used for fraudulent transactions in exchange for a five percent commission on each transfer.

Search operations conducted during the crackdown resulted in the seizure of 63 mobile phones , along with 208 bank passbooks and cheque books linked to the suspicious accounts. Investigators found that the individuals involved came from varied backgrounds, including bank employees, software engineers, businessmen, private sector workers, healthcare staff, students, and daily wage labourers , with ages ranging from 19 to 45 years .

The probe also uncovered sophisticated methods used to create and operate these accounts. Some suspects allegedly opened virtual bank accounts using fake identities , submitted forged KYC documents , and relied on proxy mobile numbers to avoid detection. In one case reported in Warangal , a suspect used bank accounts belonging to family members to route fraudulent funds.

Police also identified 52 additional facilitators who helped sustain the network. Their roles included recruiting people willing to open bank accounts, arranging SIM cards, collecting ATM cards and PIN details , and withdrawing or transferring money once fraudulent funds were deposited.

The investigation further exposed lapses in banking procedures. Authorities arrested two bank employees linked to Bank of Maharashtra and Jubilee Hills Merchant Cooperative Bank , alleging that they assisted in opening suspicious accounts without following proper KYC verification norms . Officials discovered that 19 bank branches had more than 20 mule accounts each , raising concerns about weak compliance and monitoring systems within some banking institutions.

Because several of these accounts were connected to cybercrime cases registered in other states, police booked the accused under Section 112 of the Bharatiya Nyaya Sanhita (BNS) . Investigators are continuing to trace the flow of funds and identify additional links in the network.

The Telangana Police have reiterated their zero-tolerance policy against cybercrime , warning that individuals who allow their bank accounts to be used for suspicious transactions can face serious legal consequences. Authorities also urged the public to never share bank account details, ATM cards, PIN numbers, or OTPs with others, stressing that even permitting someone to use one’s account for financial transfers can amount to a criminal offence.