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.
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.
Data Integration and Financial Intelligence
According to the state government, investigators analyzed data from the Indian Cyber Crime Coordination Centre (I4C), the National Cyber Crime Reporting Portal (NCRP), 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.
Nationwide Impact and Commissions
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.
Choking Illicit Cash Exits
The intensive law enforcement campaign forced a significant shift in how cyber-syndicates attempt to withdraw stolen funds from the banking ecosystem. Data from the operation shows a sharp 75% overall reduction in check withdrawals by fraudsters, with monthly check extractions plummeting from ₹126 crore down to ₹25 crore.
Furthermore, efforts aimed at freezing the “first-layer” accounts—where victims’ funds are initially deposited—resulted in a 30% reduction in active suspect accounts. Physical cash withdrawals via ATMs, a common tactic used by syndicates to completely erase the digital paper trail, also registered a dramatic 66% decline during the final quarter of the crackdown.
AI-Based Monitoring Planned for Banks
To build on the success of the operation, the Reserve Bank of India (RBI) is guiding the implementation of an Artificial Intelligence-based risk-scoring system. Developed through the Indian Digital Payment Intelligence Corporation (IDPIC), the system will classify daily banking transactions as low, medium, or high risk.
This classification system will enable commercial banks to proactively identify and flag suspicious accounts before major laundering occurs. Additionally, a central registry hosted at mulehunter.ai has been created to facilitate immediate, multi-bank information sharing regarding flagged fraudulent entities.
