New Delhi: An investigation into an online fraud complaint involving just ₹10,000 has led Delhi Police to uncover a nationwide cybercrime network that allegedly laundered crores of rupees through mule bank accounts. The Central District Police arrested six accused, including a bank manager, while legal action was initiated against four officials of a private bank. Investigators found that the syndicate had been supplying corporate current accounts opened in the names of fake companies to cybercriminals for the past three to four years, enabling them to channel and conceal proceeds of online fraud.
During the investigation, police identified 248 mule bank accounts through which transactions worth more than ₹70 crore had been routed. These accounts were linked to 156 cyber fraud complaints registered across 19 states and Union Territories, involving financial losses of nearly ₹20 crore. Authorities have so far frozen ₹56 lakh, while efforts are underway to trace and recover the remaining funds.
According to investigators, those arrested include Kundan Kumar, a manager with Suryoday Small Finance Bank. Legal proceedings have also been initiated against four officials and associates of a private bank. Investigators suspect that the banking system was misused to open corporate accounts in the names of shell companies, with alleged insider assistance facilitating their use by cyber fraudsters.
The syndicate came to light after a resident of Patel Nagar reported losing ₹10,000 in a fake job scam. A digital analysis of the money trail revealed that part of the defrauded amount had been transferred to the current account of a fictitious firm named Damian Traders. Through digital profiling and technical surveillance, police tracked down Mohit Soni, who was arrested on July 8. His interrogation subsequently exposed the wider criminal network.
Search operations led to the recovery of 248 bank account kits, 38 SIM cards, 22 mobile phones, 28 fake company seals, 55 debit and credit cards, ₹1 lakh in cash, and a Maruti Brezza vehicle. Investigators believe these resources were used to create shell companies, open fraudulent bank accounts and move stolen funds through multiple layers of transactions to obscure their origin and destination.
Police said the investigation has also revealed international links to Dubai and the United Kingdom. Preliminary findings suggest that cybercriminals operating overseas were provided with Indian bank accounts through the syndicate to receive and transfer proceeds of online fraud. Authorities are now searching for the absconding kingpin in India as well as the alleged mastermind believed to be operating from the United Arab Emirates. Financial transactions with possible cross-border links are also under scrutiny.
Renowned cybercrime expert and former IPS officer Prof. Triveni Singh said mule bank accounts have become one of the most critical components of organised cybercrime. He explained that criminals first create shell companies and then use multiple bank accounts to layer and move stolen money, making it extremely difficult for investigators to trace the final beneficiaries. He stressed that banks must strengthen Know Your Customer (KYC) verification and enhance monitoring of corporate accounts, while members of the public should verify all job offers, investment schemes and financial requests before transferring money.
Police said the investigation is continuing, with forensic examination of seized digital devices, banking records and financial transactions expected to reveal additional links to other cyber fraud modules operating across the country. Authorities have urged the public to report suspicious online transactions immediately through the National Cyber Helpline 1930 or the National Cyber Crime Reporting Portal, noting that prompt reporting significantly improves the chances of freezing fraudulent transactions and minimising financial losses.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
