Ahmedabad: Gujarat Police has uncovered cyber fraud transactions worth approximately ₹2,289 crore during a statewide operation targeting mule accounts allegedly used to move and conceal proceeds of online fraud. The operation, called “Operation Mule Hunt 1.0,” led to 565 FIRs, 638 arrests and action against 913 mule accounts linked to 4,052 cybercrime cases across the country.
Operation Targets Fraud Money Trail
The operation was conducted by the Cyber Centre of Excellence with the participation of police commissionerates, range-level units, local crime branches and cyber police stations across Gujarat.
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According to the state government, investigators analysed data from the Indian Cyber Crime Coordination Centre, the National Cyber Crime Reporting Portal, the Coordination Portal and the 1930 cyber fraud helpline. Special nodal officers were appointed across districts to coordinate investigations, while banks were asked to support real-time sharing of account information.
Officials said the objective was to identify and dismantle mule account networks allegedly used by cybercriminals to receive, transfer and launder money generated through online frauds.
638 Arrested, 4,052 Cases Linked to Accounts
The operation resulted in the registration of 565 FIRs and the arrest of 638 individuals. Authorities took action against 913 mule accounts, which were later linked to 4,052 cybercrime cases reported across India. Of these, 491 cases were registered in Gujarat.
Investigators found that some account holders had allegedly allowed their bank accounts to be used in exchange for commissions or monetary benefits. In other cases, individuals may have become part of the network without fully understanding how their accounts were being misused.
Officials said mule accounts remain a key part of cyber fraud operations because they make it harder for law enforcement agencies to trace stolen funds back to those running the scams.
AI-Based Monitoring Planned for Banks
Authorities said the crackdown has already shown measurable results. Cheque withdrawals linked to mule account activity reportedly dropped by nearly 80 percent, from around ₹126 crore per month to ₹25 crore.
The number of first-layer mule accounts, which initially receive fraudulent funds, also declined by about 30 percent between August and December 2025. During the same period, ATM withdrawals linked to such accounts fell by nearly 66 percent.
To strengthen digital payment security, the banking sector is preparing to implement an artificial intelligence-based risk scoring framework under Reserve Bank of India guidelines. The system, being developed through the Indian Digital Payment Intelligence Platform, will classify transactions into low, medium and high-risk categories.
A dedicated intelligence-sharing platform, Mulehunter.ai, has also been established to help banks exchange information on suspicious accounts. Authorities believe such coordination will help prevent cybercriminals from exploiting gaps in the financial system.
Cybercrime expert and former IPS officer Prof. Triveni Singh said action against mule accounts is among the most effective ways to disrupt the financial infrastructure behind large-scale cyber fraud. He also warned people against allowing others to use their bank accounts for commissions, saying such arrangements can lead to serious legal and financial consequences.
