355 Suspicious Bank Accounts Under Scanner; Five Youth Trafficked for ‘Cyber Slavery’ Rescued from Abroad
Basti – What began as scattered cyber-fraud incidents has now exposed a deeper rot inside the banking system. Investigators in Basti district have unearthed an alarming pattern: certain bank staff, instead of safeguarding customers’ deposits, were allegedly helping cyber-criminals operate mule accounts. In a major crackdown, police have registered an FIR against the Branch Manager of Axis Bank, Lalganj, after evidence indicated his role in facilitating fraudulent transactions.
Senior officials say this is just the beginning. Any banking professional found bypassing KYC norms or supporting suspicious accounts will face strict criminal action.
355 Mule Accounts at the Core of Multi-State Cyber Fraud
The district’s Cyber Cell has identified 355 active mule accounts used to route proceeds of online fraud. Investigators found that several accounts were opened with forged documents, many dormant accounts were mysteriously reactivated, and high-volume suspicious transactions were deliberately ignored by bank staff.
What Are Mule Accounts?
Mule accounts are bank accounts used to launder illicit money, mask the identity of fraudsters, and scatter stolen funds across multiple destinations. Cyber gangs often lure poor or unemployed individuals into giving up their bank accounts for a small commission or under false pretexts. Once the fraud amount enters a mule account, it is instantly transferred through several layers, making it difficult for police to trace the masterminds.
Commission, Negligence and Collusion: Bank Officials Under Lens
The investigation suggests that a section of bank employees directly or indirectly enabled these criminals. According to sources:
- Some officials opened accounts on fake or incomplete KYC documents.
- Unusually large transactions were not flagged or reported as required under RBI’s guidelines.
- Suspicious credits and immediate outward transfers were ignored despite clear red flags.
Police officials clarified that the era of treating only fraudsters as criminals is over. Bank employees who facilitate such transactions—whether knowingly or through willful negligence—will also be booked as co-accused.
Lalganj, Kotwali and Sonha: Hotspots of Suspicious Banking Activity
A majority of the flagged mule accounts originate from branches located in Lalganj, Kotwali and Sonha police station limits. These accounts were used to divert lakhs of rupees across several states within minutes. Investigators believe that the involvement—or silence—of insiders significantly strengthened the cyber syndicates’ operations.
Five Youth Trapped in ‘Cyber Slavery’ Rescued from Abroad
In a disturbing parallel development, authorities rescued five youths from Basti district who had been trafficked abroad under the guise of lucrative “data entry” or “IT support” jobs. Once taken overseas, they were coerced into executing cyber fraud operations for criminal syndicates—a growing phenomenon now referred to as cyber slavery.
Those Rescued Include:
- Suraj Pandey (Parsa Purani, Rudhauli)
- Rampreet Yadav (Sukrauli, Lalganj)
- Sugandh Vishwakarma (Ranipur Berta, Parasrampur)
- Dilip Kumar (Ibrahim Chak Sheikhpur, Sonha)
- Maizuddin (Hasanpur village)
Authorities say these youths were promised high salaries but ended up working under threat and captivity.
Clear Indicators of Money Laundering Ignored by Bank Staff
According to the Cyber Cell, several mule accounts exhibited classic money-laundering behaviour: sudden deposits of large sums into the accounts of labourers, students or unemployed individuals, followed by rapid withdrawals or transfers.
“When such patterns emerge repeatedly and are still overlooked by bank staff, it becomes evident that the system is being exploited from within,” an officer said.
District Police Chief Sends Stern Message to Banks
Superintendent of Police (Basti), issued a firm statement:
“Mule accounts are the backbone of cyber fraud. Any bank employee found violating KYC norms or intentionally keeping suspicious accounts active will face stringent legal action. No official can escape responsibility.”
A Strong Warning: “Not Just Fraudsters — Their Enablers Are Criminals Too”
The ongoing crackdown marks a shift in strategy. Instead of chasing only the frontline cyber-criminals, the police are now dismantling the support ecosystem that enables them—particularly within the banking network.
The message from the administration is unequivocal: cyber fraud cannot be controlled unless both the fraudsters and their collaborators face equal accountability.
