Hyderabad. A ₹1.04 lakh investment fraud complaint lodged in Telangana’s Nizamabad district has led investigators to uncover a massive cyber fraud network operating across 14 states. What initially appeared to be a routine online scam investigation eventually exposed a web of 46 mule bank accounts allegedly used to route proceeds of cybercrimes worth nearly ₹152.18 crore.
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Small Investment Fraud Complaint Leads to Bigger Network
The case dates back to January 2025, when a private company employee from Nizamabad approached the police after losing ₹1.04 lakh through an online investment application promising unusually high returns.
Investigators said the victim was initially shown small profits on minor investments. This gradually encouraged him to deposit larger amounts in multiple instalments. The fraud came to light when he was unable to withdraw the money.
During the investigation, police traced the transferred funds to a current account opened at a private bank branch in Nizamabad. The account was immediately frozen and its holder, Mohammad Abdul Jawed, was detained for questioning. According to investigators, Jawed admitted that he merely opened the account while its operations were allegedly controlled by his handler, identified as Nithish.
As investigators dug deeper, they discovered another account, 56820000100031001, which was allegedly linked to cyber fraud cases reported in several states. Officials said the account had been used in investment scams, fake-call frauds, and other social engineering operations. The account later emerged as a crucial link connecting multiple cybercrime syndicates.
Crackdown Finds 46 Mule Accounts Linked to Complaints
Police records revealed that the same account had first surfaced in June 2024 on the National Cyber Crime Reporting Portal. In that earlier case, a Noida-based victim from Uttar Pradesh allegedly lost nearly ₹4 lakh in an investment fraud, with the money eventually reaching the same Nizamabad-linked account. However, the investigation at the time reportedly stalled because the connected accounts were spread across different states.
In February 2026, the Telangana Cyber Security Bureau launched a special operation named “Crackdown 1.0” to identify and dismantle mule account networks involved in cyber frauds. During the operation, investigators reportedly recovered data related to 13 bank accounts from Nithish’s mobile phone. These accounts were linked to suspicious transactions worth nearly ₹31 crore, with most of them opened in the same private bank.
Authorities then sought details of all current accounts opened in the bank between 2024 and 2026. Out of 106 accounts examined, 46 were allegedly linked to complaints registered on national cybercrime databases. Investigators suspect that certain bank insiders may also have played a role in facilitating the opening of these accounts. So far, seven accused have been arrested, while several others remain absconding.
Victims Across States Point to Wider Social Engineering Fraud
The investigation also brought forward stories of victims from different parts of the country. In Noida, an IT professional was allegedly lured into investing large sums in fake IPO opportunities. In Bihar’s Buxar district, a homemaker was tricked through a fraudulent transaction message and convinced to transfer money back to scammers. In Gujarat’s Vadodara, a man allegedly transferred funds after hearing a cloned voice impersonating his relative. Meanwhile, a government employee in Hyderabad reportedly lost nearly ₹13 lakh after investing through a fake stock market application.
Renowned cybercrime expert and former IPS officer Prof. Triveni Singh said cybercriminals are increasingly relying on social engineering tactics, fake investment platforms, and fabricated digital identities to manipulate victims. According to him, mule account networks have become the backbone of organised cyber fraud operations because they help criminals rapidly transfer money through multiple accounts, making investigations more difficult.
