The Central Bureau of Investigation (CBI) has summoned several bank officials in connection with one of India’s largest cyber fraud crackdowns involving over 8.5 lakh suspected mule accounts. The accounts, allegedly used to channel funds from cybercrimes, are under intense scrutiny amid revelations of possible collusion by insiders at financial institutions.
Officials familiar with the investigation confirmed that the CBI, acting on intelligence provided by state police and cybercrime units, is now probing whether certain bankers facilitated the opening of fake or fraudulent accounts, knowingly or through negligence.
Widening Probe into Cybercriminal Financial Networks
The CBI’s inquiry has expanded nationwide, targeting branches in states with the highest number of flagged accounts. These mule accounts are believed to have been used to route illicit money gained from phishing, fake loan apps, investment scams, and e-commerce fraud.
Sources indicate that the accounts were opened using forged documents or impersonated identities, raising concerns about the effectiveness of existing Know Your Customer (KYC) protocols. The investigating agency is reportedly examining whether bribes or lapses in internal verification processes allowed these accounts to slip through the system.
A senior official stated, “There are signs of systemic abuse. We’re investigating the extent of involvement—whether these were individual lapses or part of an organized collusion.”
CBI Coordination with Financial Institutions and Regulators
The CBI has begun coordinating with the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) to tighten the net around digital fraud channels. Banks have been asked to provide detailed logs of accounts suspected of fraud, along with data on the officials who processed or approved the openings.
While banks have not been officially named yet, several major private and public sector institutions are expected to be part of the investigation. Regulators are also expected to review internal audit reports and file suspicious transaction reports (STRs) where applicable.
The discovery of over 8.5 lakh mule accounts marks a critical moment in India’s battle against cyber-enabled financial crime. The accounts are not only being used for funneling stolen money but are increasingly tied to money laundering networks with transnational footprints.
About the Author – Anirudh Mittal is a B.Sc. LL.B. (Hons.) student at National Forensic Sciences University, Gandhinagar, with a keen interest in corporate law and tech-driven legal change.