The Central Bureau of Investigation (CBI) has arrested two bank officials for their alleged role in opening and actively facilitating ‘mule accounts’ used in large-scale cyber fraud. According to the agency, the accounts were opened in collusion with organised cyber criminals and were later used to route and launder fraud proceeds.
In an official statement, the CBI said the action is part of a broader nationwide probe aimed at preventing the misuse of the banking infrastructure for cyber-enabled financial crimes.
Who Are the Arrested Accused
Based on the analysis of digital devices, transaction data and technical evidence, the CBI found that the following officials played an active role in the racket:
- Then Assistant Manager, Canara Bank, Patna
- Then Business Development Associate, Axis Bank, Patna
According to investigators, both officials acted in active connivance with cyber fraudsters to open mule accounts and ensure that these accounts remained fully operational.
The agency stated that the accused not only facilitated the opening of such accounts but also guided the cyber criminals on fund movement, helping them execute seamless money mule transactions across multiple accounts.
Quid Pro Quo and Tips to Evade Banking Red Flags
The CBI said its investigation has unearthed substantial evidence suggesting that the accused officials received quid pro quo benefits in return for assisting the cyber fraud network.
The statement further revealed that the officials allegedly advised fraudsters on how to bypass banking system red flags, enabling large and suspicious transactions to take place without triggering immediate alerts.
According to the agency, such insider assistance is critical for executing cyber fraud operations at scale, and without it, routing and layering of illicit funds would be extremely difficult.
Part of a Larger Nationwide Crackdown
The arrests form part of a larger CBI operation against organised cyber fraud syndicates. In earlier phases of the same investigation, the agency had:
- Conducted searches at 61 locations across the country
- Arrested 13 accused persons
- Filed charge sheets under IPC/BNS provisions and the Prevention of Corruption Act
The two arrested bank officials are considered a key link in this wider network, investigators said.
Arrests from Varanasi and Bettiah
According to the CBI, the arrests were made on December 24, 2025. One official was apprehended from Varanasi, Uttar Pradesh, while the other was arrested from Bettiah, Bihar.
The agency said both accused are being produced before the competent jurisdictional courts after obtaining transit remand.
Role of Other Bank Officials Under Scanner
The CBI has clarified that the investigation is still ongoing, and the role of other bank officials involved in the opening and operation of mule accounts is also under examination.
Officials said the probe is focused on identifying systemic vulnerabilities within the banking ecosystem that are exploited by cyber criminals to facilitate fraud at scale.
Aligned with Government’s Zero-Tolerance Policy
In its statement, the CBI said the action reflects the Government of India’s firm policy against cyber crime and its supporting ecosystem.
The agency emphasised that arresting end-level fraudsters alone is insufficient, and that it is equally important to dismantle the institutional and insider support structures operating within banks and digital systems.
The CBI indicated that more arrests and charge sheets are likely in the coming days, as the investigation spans multiple states, accounts and financial trails.
