Moradabad: A massive cyber fraud network has been uncovered in Uttar Pradesh’s Moradabad, where nearly ₹34 crore was siphoned off using around 1,100 bank accounts. Investigations reveal that these accounts were systematically used by cyber criminals, while most account holders belonged to economically weaker sections who were lured under the pretext of availing government welfare schemes.
Fraudsters allegedly used fake government scheme promises to trap the poor
According to preliminary findings, these accounts were used exclusively to route fraudulent funds between 2023 and now. Notably, they were not used for regular banking transactions, but solely for cybercrime-related activities. Authorities have identified 1,100 such accounts so far, of which more than 500 have already been closed, while the rest remain active and under scrutiny.
Officials indicate that the network operated through a well-planned strategy. Cyber fraudsters targeted individuals in rural and semi-urban areas, convincing them to open bank accounts by promising benefits under various government schemes. In many cases, account holders were paid small amounts in return, after which full control of their accounts was taken over by the fraudsters.
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The stolen money was moved within hours through layered transfers
The stolen money was directly transferred into these accounts and then quickly dispersed into multiple other accounts within hours. This method, commonly known as “layering,” is widely used in money laundering to obscure the money trail. As a result, tracking the actual masterminds becomes significantly more challenging for investigating agencies.
The probe has revealed that the highest number of such accounts was opened in the Moradabad district. Additionally, accounts linked to people from Badaun, Sambhal, Rampur, and Bijnor were also used to channel fraudulent funds. Investigators are now working to connect these accounts and identify the key operators behind the network.
More than 1,100 accounts surfaced in the probe
So far, authorities have reached nearly 800 account holders. Most of them stated that they were misled into opening bank accounts with promises of government benefits. Some admitted receiving small payments, after which their accounts were used without their knowledge. Several account holders were completely unaware that transactions worth lakhs or even crores were being routed through their accounts.
Officials have warned that even if account holders are not directly involved in the fraud, they may still face legal consequences, as their accounts form a critical link in the chain of financial crime. Citizens have been urged to remain vigilant and avoid sharing banking details or documents with unknown individuals.
Commenting on the case, renowned cybercrime expert and former IPS officer Prof. Triveni Singh said that such operations rely heavily on “money mule networks.” He explained,
“Cyber criminals exploit poor and unsuspecting individuals by using their bank accounts to move illicit funds, allowing the real perpetrators to stay hidden. This is part of an organised financial crime ecosystem that combines social engineering with financial layering techniques.”
He further cautioned that allowing someone else to use one’s bank account—even unknowingly—can make a person part of a criminal chain. Safeguarding financial information and documents is therefore critical.
Cyber police officials also highlighted that timely reporting can significantly reduce losses. In this case, victims who reported promptly to the helpline helped authorities freeze and recover nearly ₹9 crore. This underlines the importance of immediate action in cyber fraud cases.
The case underscores a growing trend where cybercrime is no longer just a technological threat but also exploits social and economic vulnerabilities. As digital adoption expands, authorities will need to strengthen technical capabilities, while citizens must remain alert and informed to avoid falling prey to such sophisticated fraud networks.
