Maharashtra, Uttar Pradesh and Rajasthan are among the 10 high-risk states where cybercriminal networks are increasingly opening “mule accounts” to siphon off and launder illicit funds, officials in the Union Ministry of Home Affairs (MHA) have said. The widening footprint of such accounts underscores the growing sophistication of cyber fraud operations across the country.
Mule Account Hotspots Listed
Other states and Union Territories flagged as major hotspots include Haryana, Delhi, Dadra and Nagar Haveli and Daman and Diu, Karnataka, Madhya Pradesh, Bihar and Tamil Nadu. The Indian Cyber Crime Coordination Centre (I4C), a specialised wing under the MHA, has identified these regions after analysing patterns of suspicious banking transactions linked to cyber fraud.
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How Mule Accounts Operate
A mule account is a bank account controlled knowingly or unknowingly by an individual—often referred to as a “money mule”—to receive, transfer or withdraw illegal funds on behalf of cybercriminals. Such accounts are used to conceal the origin of stolen money and create multiple transaction layers, making it harder for enforcement agencies to trace the proceeds.
Jamtara and Nuh Lead Statistics
Investigations suggest that fraudsters first deposit money obtained through scams into these accounts. The account holders are then instructed to move the funds to other accounts, withdraw cash from ATMs, or route the money through cheques. In return, they are often paid a small commission.
Data compiled by I4C reveals the scale of the problem in certain districts. In Jharkhand’s Jamtara—long associated with cyber fraud—more than 350 mule accounts were detected in 2025 alone. Approximately ₹7 crore was withdrawn from these accounts using ATMs and cheques, while an additional ₹3.8 crore was routed through them. Nearly 5,000 ATM IDs and over 20 cheque branches were reportedly involved in transactions traced back to the district.
Transnational Crime Networks
In Haryana’s Nuh district, authorities identified over 1,000 mule accounts in 2025. Withdrawals from these accounts amounted to ₹18 crore, with another ₹0.8 crore routed through the first layer of transactions. More than 1,400 ATM IDs and 75 cheque branches were linked to suspicious activity.
Officials explained that spreading transactions across multiple accounts and geographic regions is a deliberate strategy to break the audit trail. The layering process ensures that even if one account is flagged, the larger network remains partially insulated.
Investigators have also flagged a transnational dimension to the problem. Several cybercrime syndicates are reportedly shifting their operational bases to countries such as Cambodia, Vietnam and Myanmar while continuing to use mule accounts in India to route funds. This cross-border element has complicated enforcement efforts and requires coordination with international agencies.
8.5 Lakh Mule Accounts Detected
According to officials, the Central Bureau of Investigation (CBI) identified nearly 8.5 lakh mule accounts opened across 700 bank branches nationwide in 2025. The sheer volume has prompted banks to tighten due diligence norms and enhance monitoring systems to detect suspicious account openings and transactions.
Chacha Chaudhary Awareness Campaign
To raise awareness, banks have begun distributing specially designed comic booklets featuring characters like Chacha Chaudhary and Sabu to new account holders. The material explains how mule accounts are misused and warns customers against allowing others to operate their bank accounts.
Authorities have also expressed concern that some Business Correspondents (BCs) may have been compromised to facilitate the opening of mule accounts, particularly in remote or financially vulnerable regions where awareness levels are low.
MHA Calls for Vigilance
The MHA has urged states to strengthen vigilance, boost digital literacy campaigns and improve coordination between banks and law enforcement agencies. Citizens have been advised not to share banking credentials or agree to transfer money on behalf of unknown individuals.
With cyber fraud cases rising sharply, dismantling mule account networks has become a critical pillar of India’s broader strategy to curb digital financial crimes.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
