Hyderabad: As cybercrime continues to surge across India, Hyderabad Police have launched an ambitious and wide-ranging initiative called Operation Octopus, aimed at dismantling the infrastructure that enables large-scale cyber fraud.
Rather than limiting investigations to frontline scammers, the operation seeks to identify and disrupt every layer of the criminal ecosystem, including mule bank accounts, fraudulent SIM cards, banking loopholes, cryptocurrency laundering channels and the individuals orchestrating these operations from within India and abroad.
Investment App Lures and Multi-State Fund Routing
The operation gained momentum after investigators examined the complaint of a Hyderabad resident who lost nearly ₹36 lakh in an alleged online investment scam. The victim was reportedly lured through a social media advertisement promoting stock market investments and was subsequently added to WhatsApp groups populated by individuals posing as trading experts. Encouraged by screenshots of purported profits and promises of high returns, he downloaded trading applications shared through links and transferred large sums of money into bank accounts provided by the fraudsters.
When he later attempted to withdraw his earnings, the applications stopped functioning and the so-called advisors became unreachable, prompting him to approach the cybercrime police.
During the investigation, officers discovered that the stolen funds had been routed through multiple bank accounts spread across different states. A portion of the money was allegedly withdrawn in Gujarat before being transferred through additional intermediaries. Investigators believe the funds were eventually converted into cryptocurrency and moved through digital channels, making tracking and recovery significantly more difficult.
According to investigators, the cyber fraud network operates through a sophisticated multi-layered structure. At the lowest level are the callers, social media operators and online fraudsters who interact directly with victims. Above them are agents who procure mule accounts, suppliers of fraudulent SIM cards, money handlers and intermediaries who facilitate the movement and laundering of illicit proceeds before they reach the alleged kingpins.
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Mule Account Networks and Banking Sector Collusion
The first phase of Operation Octopus focused on the mule account network. Police identified more than 350 suspicious bank accounts allegedly linked to over 850 cybercrime cases involving transactions worth approximately ₹150 crore. During the operation, more than 100 individuals were apprehended, including account holders, account suppliers and a bank employee suspected of facilitating the opening or operation of such accounts.
The second phase shifted attention to vulnerabilities within the banking system. Investigators reportedly uncovered instances of inadequate KYC verification, weak due diligence and alleged collusion by certain employees. Raids conducted across multiple states led to the arrest of more than 50 individuals, including several bank employees. Authorities believe aggressive account-opening targets and insufficient monitoring mechanisms may have been exploited by organised cybercrime syndicates to establish large numbers of accounts for fraudulent activities.
Ghost SIM Connivance and Identity Misuse
The third phase targeted the growing problem of “ghost SIMs”—mobile connections allegedly activated using the identities of unsuspecting individuals. Police identified 1,194 such SIM cards believed to have been used by cybercriminals to conceal their identities and coordinate fraudulent operations. Investigators found that some SIM cards were activated through misuse of customer data, while others were obtained by persuading individuals to surrender mobile connections in exchange for money or incentives.
Renowned cybercrime expert and former IPS officer Prof. Triveni Singh said, “Modern cybercrime extends far beyond technical hacking. Criminals increasingly rely on social engineering, fake investment platforms, mule accounts and cryptocurrency channels to build complex, multi-layered fraud networks. Combating such organised crime requires dismantling the entire ecosystem rather than focusing solely on individual offenders.”
Helpline Mobilization and Digital Asset Fragmentation
Police have urged citizens to immediately report suspected cyber fraud through the national cybercrime helpline 1930. Investigators say the first few hours after a fraudulent transaction are critical, as swift reporting increases the chances of freezing funds before they are dispersed through multiple accounts and crypto channels.
Officials acknowledge that once money is fragmented across numerous accounts and converted into digital assets, recovery becomes significantly more challenging. With Operation Octopus still underway, investigators are now focusing on identifying and reaching the higher-level operators believed to be controlling the vast cyber fraud network from behind the scenes.
