A cyber fraud network that allegedly opened bank accounts in the names of students and used them for illegal financial transactions has been uncovered in Karnataka’s Gadag district. Five accused have been arrested in connection with the case, and investigators have recovered 11 mobile phones and eight bank kits, including passbooks, ATM cards, linked SIM cards and internet banking credentials.
Investigations revealed that members of the gang targeted students by promising assistance in obtaining scholarships. Under this pretext, they persuaded the students to open bank accounts in their names. Once the accounts were created, the accused allegedly collected all the associated documents and banking access details, which were later used for cybercrime-related financial transactions.
The main accused have been identified as Raja (23) and Vakdoth Vakeel (24), residents of Dasarahalli Tanda in Huvina Hadagali taluk of Vijayanagara district. According to the investigation, the two allegedly planned and executed the operation together. Their primary targets were students residing at the Post-Metric Professional Boys’ Hostel on Kalasapur Road in Gadag city.
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Student Bank Accounts Scam: ₹2,000 Deposits to Avoid Suspicion
To gain the students’ trust, the accused reportedly claimed they could help them secure government scholarships. They encouraged the students to open bank accounts and even deposited an initial amount of around ₹2,000 in each account to facilitate the process and avoid suspicion.
Once the accounts were opened, the accused allegedly took possession of the passbooks, ATM cards, internet banking credentials and SIM cards linked to the accounts. These bank accounts were later used to route money obtained through cyber fraud. Investigators suspect that funds from various online fraud operations across different regions were transferred through these accounts.
Goa Operation Busted: Accused Caught Handing Bank Kits to Network
Based on credible information, a case was registered on March 11, and an investigation was launched. During the probe, authorities learned that the accused were travelling to Goa to hand over the collected bank kits and account details to other members of the network. Acting on this information, investigators tracked their movements and apprehended them.
During interrogation, the main accused reportedly disclosed that they had travelled to Goa to discuss commission related to transactions carried out through eight fraudulently opened bank accounts with another member of the network identified as Kumar, a resident of Attikatti Tanda. Kumar is currently absconding.
Five Arrested Including Goa-Based DJ and Hotel Worker; 11 Phones Seized
Further investigation led to the arrest of three more accused. They have been identified as Zeeshan Ansari alias Zeesu (22), originally from Jharkhand and working in a hotel near Calangute Beach in Goa; Akash (32), a DJ artist from Bilaspur in Chhattisgarh who was residing near Mapusa in Goa; and Sahil (22), a student from Bilaspur, also staying in Goa.
During the operation, investigators seized 11 mobile phones and eight bank kits. The recovered kits contained passbooks, ATM cards, linked SIM cards and internet banking credentials. Preliminary findings revealed that three of the accounts were opened in Haveri district and five in Gadag district, all in Bank of Maharashtra branches.
Larger Network Suspected: Mule Accounts Fuel Cross-State Cybercrime
Investigators believe that the gang may have opened several more accounts using the same method. Authorities suspect that the network could be larger and may extend across multiple states, with similar bank accounts being used to facilitate cybercrime transactions.
Efforts are currently underway to track three more suspects believed to be associated with the network. Investigators are analysing the seized mobile phones and the transaction history of the bank accounts to determine the total amount of money that passed through them and to identify links to other cyber fraud cases.
Cybercrime experts note that such “mule accounts” have become a common tool used by fraud networks in recent years. Criminal groups often exploit unsuspecting individuals—particularly students and migrant workers—by persuading them to open bank accounts, which are then used to transfer illegal funds. This practice makes it difficult for investigators to trace the actual masterminds behind large-scale cyber fraud operations.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
