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Gujarat Police have busted a major cyber fraud network operating across the country, arresting eight persons for allegedly facilitating a ₹826-crore nationwide scam by opening and supplying bank accounts created in the names of fake companies to cybercriminals.
Investigators said the accused had opened 82 bank accounts linked to nine fictitious firms, which were then used by organised cyber fraud syndicates to route illicit funds collected from unsuspecting victims across multiple states. The arrests were made in Surat as part of an ongoing crackdown on mule accounts and financial conduits used in digital frauds.
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According to officials, the accused played a key enabling role in cybercrime by creating shell entities, opening accounts using forged or misleading documentation, and handing over complete banking access — including cheque books, ATM cards and digital credentials — to cyber gangs operating through online platforms.
Preliminary findings indicate that the bank accounts were used in at least 1,229 cybercrime cases registered across India, with the total fraud amount exceeding ₹826 crore. The scam is believed to be among the larger cyber fraud operations uncovered in Gujarat in recent years.
Operation Mule Hunt
The arrests were made under Operation Mule Hunt, a targeted drive launched to identify and dismantle networks supplying mule bank accounts to cybercriminals. Police said such accounts are a critical link in online fraud ecosystems, allowing criminals to quickly move money, withdraw cash or divert funds through informal channels before detection.
Investigators said the accused earned commissions on each bank account opened, with payments varying depending on transaction volume and risk exposure. Apart from facilitating digital transfers, some of the accused allegedly withdrew large sums in cash, which were later routed through hawala channels, further complicating efforts to trace the money trail.
Officials said cybercriminals used SMS, WhatsApp and Telegram to contact potential victims, often posing as investment advisors or representatives of trading platforms. Victims were lured with promises of high returns and quick profits, after which funds were transferred to the fake accounts controlled by the accused.
“These mule accounts provided anonymity and speed to cyber gangs, enabling them to defraud citizens and shift money before banks or law enforcement could flag the transactions,” an official said.
Fake firms, real losses
Police said the accused deliberately set up firms that appeared legitimate on paper, using fabricated business details and addresses. The accounts were then dispersed among multiple cyber syndicates, making the operation both scalable and difficult to detect.
Authorities are now coordinating with banks, financial intelligence units and cybercrime cells in other states to freeze linked accounts, identify end-users of the funds and trace beneficiaries further up the criminal chain. More arrests are likely as the investigation expands.
Growing cyber threat
The bust comes amid a sharp rise in cybercrime cases across India, with fraudsters increasingly exploiting digital payments, messaging platforms and social engineering techniques. Law enforcement agencies have repeatedly warned citizens against clicking unknown links, downloading APK files from unverified sources or responding to unsolicited investment offers.
In a separate recent incident highlighting the scale of the threat, a 53-year-old Mumbai businessman lost ₹9.71 lakh after opening a malicious APK file received through a fake e-challan message on WhatsApp. The malware enabled unauthorised IMPS transactions without the victim’s knowledge.
Public advisory
Police have urged citizens to remain vigilant, verify the authenticity of messages claiming to be from government agencies or financial institutions, and immediately report suspicious transactions. Banks have also been asked to strengthen due diligence while opening accounts and closely monitor unusual transaction patterns.
Officials said the crackdown on mule accounts will continue, with a focus on dismantling the financial infrastructure that allows cyber fraud networks to thrive.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
