Economic Fraud
Cybercrime Surge: Half a Million Suspicious Bank Accounts Frozen
New Delhi: The Indian government has frozen approximately 4.5 lakh “mule” bank accounts over the past year. These accounts, often opened using stolen identities, are primarily used to launder the proceeds of cyber frauds.
State Bank of India, Punjab National Bank, Canara Bank, Kotak Mahindra Bank, and Airtel Payments Bank were found to have the highest number of such accounts.
The Indian Cyber Crime Coordination Centre (I4C) recently informed the Prime Minister’s Office (PMO) about this alarming trend. They highlighted the evolving tactics of cybercriminals, who are increasingly resorting to cheque withdrawals, ATM transactions, and digital transfers to siphon funds from these “mule” accounts.
The I4C’s analysis, based on data from the Citizen Financial Cyber Frauds Reporting and Management System, revealed a disturbing pattern. Approximately 40,000 suspicious accounts were linked to SBI, 10,000 to PNB, 7,000 to Canara Bank, 6,000 to Kotak Mahindra Bank, and 5,000 to Airtel Payments Bank.
Since January 2023, the National Cybercrime Reporting Portal has registered nearly 1 lakh cyber complaints, with estimated losses exceeding Rs 17,000 crore.
To address this growing threat, the government’s high-level inter-ministerial panel has identified vulnerabilities in the banking system and directed state and union territory police forces to proactively investigate and take action against “mule” account holders. Bank managers and officials involved in opening such accounts are also under scrutiny.
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The Reserve Bank of India and the Department of Financial Services have been instructed to implement necessary measures to strengthen security protocols and prevent future incidents.
Airtel Payments Bank, in response to these concerns, emphasized its commitment to digital financial inclusion while maintaining robust security measures. The bank highlighted its real-time API integration with the I4C suspect registry, advanced AI/ML models for fraud detection, and innovative customer verification processes like Face Match to mitigate risks associated with “mule” accounts.