Bengaluru: In a major crackdown on cyber fraud networks, Karnataka’s specialised cyber command has arrested 68 people across the state for allegedly operating mule bank accounts used to route proceeds of online scams worth ₹85.05 crore.
Investigators said the arrests followed a coordinated operation conducted between December 2025 and February 2026, during which authorities mapped a web of fraudulent bank accounts opened using misused personal documents and used to layer and withdraw funds siphoned off from victims across the country.
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According to police, a total of 869 bank accounts linked to cyber fraud were identified during the probe. The accounts were allegedly opened using forged or fraudulently obtained identity credentials and were controlled by different modules of the network to receive, transfer and withdraw money in quick succession to evade detection.
The operation led to the registration of 60 criminal cases under cheating, forgery, identity theft and information technology laws. Multiple suspects were traced through transaction trails, SIM card linkages and digital device analysis, following which coordinated raids were carried out in several districts.
Police said the arrested individuals were primarily account holders, facilitators and cash handlers who allowed their bank accounts to be used for illegal transactions in exchange for commissions. In several cases, the accused allegedly withdrew cash from ATMs immediately after funds were credited and handed it over to higher-level operators.
During the searches, investigators seized ATM cards, mobile phones and other electronic devices believed to have been used for coordinating transactions and communicating with other members of the network. Digital evidence recovered from the devices is being analysed to identify additional beneficiaries and the masterminds behind the operation.
Preliminary findings indicate that the mule accounts were used in a range of cyber frauds, including impersonation scams, investment fraud, OTP-based theft and fake customer care schemes. The layered movement of funds through multiple accounts made it difficult for victims to trace the money and delayed recovery efforts.
Police sources said the network exploited individuals from economically weaker sections by persuading them to open bank accounts or share account access in return for small payments. These accounts were then used to receive fraudulent proceeds before the money was rapidly transferred or withdrawn.
Investigators are now working to map the financial trail, freeze remaining suspect accounts and identify inter-state links. Officials said the possibility of the network being connected to organised cyber crime syndicates operating from multiple states is being examined.
Cybercrime analysts noted that mule accounts remain a critical enabler of online fraud, allowing perpetrators to distance themselves from the actual flow of funds. The large number of accounts identified in the operation points to a structured system designed to sustain high-value scams.
Authorities have urged citizens not to share bank account details, debit cards or OTPs with anyone and to avoid allowing others to use their accounts for transactions. People have also been warned against opening bank accounts on behalf of unknown persons or handing over SIM cards and identity documents.
Victims of cyber fraud have been advised to immediately report incidents to the national cybercrime helpline 1930 or file complaints on the cybercrime portal to improve the chances of freezing funds before they are withdrawn.
Further arrests are likely as the investigation expands and digital forensics continues to uncover additional links in the mule account network.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
