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An organised cyber fraud racket that lured unsuspecting individuals with promises of quick loans, opened bank accounts in their names and then used those accounts to route proceeds of online fraud has been busted by the Indore police’s crime branch. One accused has been arrested for allegedly misusing personal documents of multiple victims to create so-called “mule accounts” used in illicit financial transactions.
Police identified the accused as Vishnu Parmar, a resident of Chandan Nagar in Indore. A case has been registered against him under relevant sections dealing with cybercrime and financial fraud. Investigators said the accused allegedly approached people offering assistance in securing loans and, under the guise of documentation, collected Aadhaar cards, PAN cards, electricity bills and photographs.
Using these documents, bank accounts were opened without the genuine knowledge or control of the account holders, police said.
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Complaint led to the probe
The case came to light after a complaint was filed by Sadab Khan, a resident of Ahmed Nagar. According to the complaint, the accused assured him of arranging a loan within a short time and collected his personal documents as part of the “process”. Based on these documents, accounts were opened in his name at Indian Bank and UCO Bank.
Police said that after the accounts were opened, the accused retained the passbooks and ATM cards, effectively controlling the accounts while the account holder remained unaware that any such banking relationship existed.
Further investigation revealed that similar accounts were opened in the name of the complainant’s mother and several other individuals using the same modus operandi. These accounts were allegedly used to transfer and layer money generated from multiple online fraud cases, a common tactic to conceal the original source of illegal funds.
Notice triggered alarm
The seriousness of the fraud became apparent on September 29, 2025, when the complainant received a notice from the Valsad Rural police station in Gujarat regarding suspicious financial transactions linked to his bank accounts. Alarmed, he approached the concerned bank branches, where officials confirmed that illegal transactions had taken place.
Bank authorities clarified that the transactions were not conducted by the account holder and that the accounts appeared to have been misused by third parties. It was then that the complainant realised his documents had been exploited for cyber fraud activities.
Arrest and seizures
Based on evidence gathered during the probe, the crime branch arrested Vishnu Parmar from his residence on Dhar Road. Police seized ATM cards, passbooks and a mobile phone from his possession. The mobile device has been sent for forensic examination to identify transaction trails, contacts and possible links to a larger network.
Investigators are now working to determine how many accounts were opened, the total amount routed through these accounts and whether other individuals were involved in operating or recruiting mule account holders.
Police officials said mule accounts have become a preferred tool for cybercriminals, as they help obscure the identity of the actual perpetrators while exposing innocent account holders to legal and financial consequences.
Growing threat, research warns
Cybercrime experts note that such cases are on the rise nationwide. According to research by the Future Crime Research Foundation, mule accounts now form the backbone of a large proportion of cyber fraud operations in India. The foundation’s studies indicate that individuals are often drawn in by offers of loans, jobs or commissions and unknowingly hand over their documents, after which their bank accounts are taken over by organised fraud networks.
The research highlights that in many cases, the first legal and financial liability falls on the account holder, even though they may not have executed the fraudulent transactions themselves.
Police advisory
Indore police have reiterated their appeal to citizens not to share personal or banking documents with unknown persons or agents offering loans, subsidies or financial assistance. Officials warned that allowing someone else to use one’s bank account or transferring money on another person’s instructions constitutes a serious offence and can invite stringent legal action.
Citizens have been advised to verify any loan-related calls, messages or emails with the concerned bank or approach the police in case of suspicion. Authorities said timely caution and verification can prevent individuals from becoming unwitting participants in mule account-based cyber fraud.
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.
