Noida | December 26, 2025 |A 23-year-old man has been arrested for allegedly assisting cybercriminals by allowing his bank account to be used for routing nearly ₹80.60 lakh of fraud proceeds linked to a fake stock market investment scam, police said on Wednesday. Investigators said the accused acted as a money mule, enabling cyber fraudsters to temporarily park and move illicit funds through his account in return for commission.
The arrest follows a complaint registered earlier this year in connection with an online investment fraud in which a victim was duped after being promised unusually high returns through a fake stock trading platform. The case highlights the growing role of mule accounts in facilitating large-scale cyber frauds across multiple states.
Account Used as a Channel for Fraud Proceeds
According to investigators, the accused allowed cybercriminals to route money obtained from victims through a current account opened in his name. The account was later identified as one of several channels used to siphon off funds collected during the scam.
Police said that during the probe, several suspicious bank accounts were flagged and frozen. One of these accounts was found to have received a substantial portion of the defrauded amount, prompting investigators to track the account holder and place him under surveillance before making the arrest.
How the Accused Was Recruited
During questioning, the accused reportedly told investigators that he was first contacted by an unknown individual through Facebook, who later shifted the conversation to WhatsApp. He was allegedly offered a commission in exchange for opening a bank account that could be used for “business transactions.”
Acting on the instructions received, the accused opened a current account under the name “Pal Enterprises” at a branch of Bank of Baroda. Police said he was paid around ₹50,000 for opening the account and handing over its operational control.
Movement and Coordination with Fraud Network
Investigators further revealed that after opening the account, the accused travelled to Lucknow, where he stayed at a hotel for nearly five to six days along with members of the fraud network. During this period, he allegedly followed instructions related to the operation of the account, including the receipt and transfer of funds.
Police said the coordination suggests that the accused was aware that the account was being used for suspicious financial activities, even if he was not directly involved in contacting victims.
Multiple Transactions, Wider Network
Financial analysis revealed that approximately ₹7.30 lakh linked directly to the September investment fraud case was routed through the accused’s account. In addition, investigators found that nearly ₹99 lakh connected to other complaints and suspected fraud cases had also passed through the same account over time.
Officials said this pattern indicates that the account was repeatedly used as part of a broader and organised cyber fraud network, rather than a one-time transaction.
Legal Action and Ongoing Probe
A case has been registered under relevant provisions of the Bharatiya Nyaya Sanhita (BNS) for cheating and cheating by impersonation, along with Section 66D of the Information Technology Act, which deals with cheating by personation using computer resources.
Police said further investigation is underway to identify other members of the network, trace the final beneficiaries of the money, and determine whether the accused facilitated similar transactions in additional cases.
Police Advisory to the Public
Authorities have once again warned citizens against sharing bank accounts, credentials or opening accounts on behalf of unknown persons, even if offered financial incentives. Police stressed that allowing one’s account to be used for such purposes constitutes a criminal offence, regardless of whether the account holder directly interacts with victims.
Experts note that money mule recruitment through social media platforms has emerged as a key enabler of cybercrime, making it harder for investigators to track the main perpetrators.
Rising Concern Over Mule Accounts
Law enforcement agencies say mule accounts remain a critical link in the cybercrime ecosystem, allowing fraudsters to quickly move money across accounts and jurisdictions. Increased monitoring of suspicious transactions and greater public awareness are seen as essential to disrupting these networks.
Police said the investigation will continue, with a focus on uncovering additional accounts and individuals connected to the fraud, and recovering as much of the defrauded money as possible.
