Hyderabad: The Cyberabad Cybercrime Police have dismantled a significant interstate syndicate allegedly involved in facilitating online investment scams by supplying mule bank accounts and SIM cards to cybercriminals. The arrest of six accused has revealed a deep-rooted network linked to fraudulent transactions amounting to more than ₹1 crore across India.
Those arrested have been identified as V. Srinivas Rao, Ch. Ganesh, G. Naveen Kumar Reddy, S. Rajesh, M. Sudheer, and Mohd. Ashraf. The accused hail from different parts of Telangana and Andhra Pradesh and were reportedly operating this illegal activity for several months.
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Modus Operandi: Trading Profits That Never Existed
According to investigators, the gang specialized in procuring multiple bank accounts and mobile SIM cards — either by renting them from individuals or using forged credentials. These accounts were then handed over to operators of fraudulent trading and investment platforms.
The cybercrooks behind these platforms lured victims with fabricated profit dashboards, displaying inflated and fake returns on investments. Trusting what they saw on screen, unsuspecting investors transferred substantial funds into the mule bank accounts supplied by the arrested gang.
A senior investigating officer explained:
“Their primary role was to offer a banking channel to fraudsters, masking their identity and making the money trail difficult to follow.”
Forensic Search Uncovers Links to 400 Cases Nationwide
A forensic examination of the electronic devices seized from the accused led to significant breakthroughs. Police recovered images of more than 60 cheque leaves, beneficiary details, and other digital records tied to numerous fraudulent transactions.
These findings have so far connected the syndicate to nearly 400 cyber fraud cases registered across multiple states in India, including three cases under Cyberabad jurisdiction.
Officials believe the extent of the crime could be much larger, particularly as evidence suggests the network was involved with scammers operating beyond Indian borders.
Commission-Based Criminal Enterprise
The group allegedly operated on a flexible commission model. Depending on the nature of the account and its risk level, payments varied from a fixed fee per account to a percentage cut of the illicit transaction value routed through the system.
Investigators further revealed that one member of the gang was in touch with foreign fraud operators via Telegram, assisting them with mule accounts to execute scams targeting Indian citizens.
Several More Suspects On the Radar
Authorities say that while six have been apprehended, several key members remain absconding. Raids are underway at multiple locations to trace the remaining culprits and identify beneficiaries of the laundered proceeds.
The Cyberabad Police also issued a public advisory urging citizens to stay vigilant:
- Avoid investing on unverified online trading portals
- Do not trust unsolicited financial profit claims
- Refrain from transferring funds to unknown bank accounts
- Report suspicious activity to the nearest cybercrime unit
Rising Threat of Mule Account Networks
Cybersecurity experts warn that such mule account suppliers have become a critical backbone of the fast-expanding digital fraud economy in India. By masking the true identity of scammers, these intermediaries make financial investigation highly complex, leading to longer resolution times and reduced chances of victim recovery.
Officials said the arrests mark an important milestone but stressed that breaking the entire supply chain of such cybercrime modules will require deeper surveillance and coordinated operations across states.
