In a major cyber fraud case, four accused involved in opening and misusing bank accounts, also known as mule accounts, have been arrested by Khorabaar police. Authorities seized 10 mobile phones, two SIM cards, one passbook, an ATM card, and three ATM slips from the accused. Investigations revealed that the gang opened a total of 16 mule accounts, using them to carry out transactions worth approximately ₹98 lakh. The accused were presented in court on Saturday and sent to jail.
The investigation revealed that the accused specifically targeted women in rural areas. They lured victims by promising benefits under government welfare schemes, convincing them to provide Aadhaar and PAN cards. Using this information, the accused first procured SIM cards and then opened bank accounts, retaining the passbooks and ATM cards for themselves.
Case Triggered by Complaint of a Victim
On 12 March, a woman filed a complaint at Khorabaar police station, stating that her acquaintances Shakti Jaiswal and Shivam Patwa had promised her government benefits, including cash and a sewing machine, to persuade her to hand over her Aadhaar and PAN details. They then obtained a SIM card and opened a bank account in her name. Using the passbook and ATM card retained by them, the accused misused the account and carried out multiple transactions, with approximately ₹12 lakh withdrawn from the victim’s account.
Following the complaint, police arrested Vansh Nishad, Shobhit Gaur, Shakti Jaiswal, and Shivam Patwa. During interrogation, authorities obtained details of additional mule accounts. The accused are being prosecuted under BNS sections 318(4), 3(5), and IT Act section 66-D.
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Mule Accounts and Handling of Funds
Investigators revealed that the primary role of the accused was to open mule accounts and launder cyber fraud proceeds. They earned a commission for every account and transaction handled. So far, 16 accounts were opened by the gang in Gorakhpur, all of which were used in fraudulent activities. Through these accounts, approximately ₹98 lakh was laundered. All accused are college graduates or degree holders, with Vansh Nishad leading the operation.
Funds Converted to Cryptocurrency and Transferred Abroad
Police said that once funds were received in the accounts, the gang converted the money into USDT via ATMs and then into cryptocurrency. This method allowed them to easily transfer the money abroad. The gang operated through a structured network, with members at different locations responsible for executing the fraud and laundering the money.
Authorities are now investigating the full network to trace other potential mule accounts and additional members of the gang. Officials have warned citizens not to fall prey to similar schemes under the guise of government welfare and advised against sharing sensitive information such as Aadhaar or PAN details.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
