In a significant crackdown on cyber crime, police in Kandhamal, Odisha, have uncovered a mule account racket linked to cyber fraud worth over ₹6 crore, arresting five persons, including an employee of a private finance company. Authorities seized 16 mule bank accounts, eight ATM cards, a laptop, 11 mobile phones and a passport from the accused.
The operation was carried out by the Kandhamal Cyber Police Station following specific inputs from the CID Crime Branch, which indicated that money siphoned off in multiple cyber crime cases had been routed through bank accounts linked to Kandhamal district.
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Who are the accused
Among those arrested is Tusarkanti Das, an employee of a private finance company based in Bhubaneswar and a native of Mayurbhanj. The other four accused—Abhinash Mahapatra, Kiran Kumar Behera, Gopal Singh and Badal Kumar Swain—are residents of areas under the Phulbani Town Police Station limits.
Addressing a press conference, Kandhamal Additional Superintendent of Police Ramendra Prasad said the accused were involved in operating and supplying mule accounts—bank accounts opened or rented out for the sole purpose of temporarily parking and transferring proceeds of cyber fraud.
How the racket was detected
According to police officials, a letter from the CID Crime Branch revealed that nearly ₹6 crore had been siphoned off in 22 cyber crime cases registered across different states. Transaction trail analysis showed that the defrauded money was routed through multiple bank accounts linked to Kandhamal district.
Based on this intelligence, the Kandhamal Cyber Police registered a case and launched a detailed investigation. Surveillance of suspicious accounts and digital footprints eventually led investigators to the accused. Preliminary findings showed that the accounts had no genuine business or income linkage and were used exclusively to move illicit funds across banking channels.
Mule accounts: the backbone of cyber fraud
Cyber crime experts say mule accounts form the financial backbone of organised online fraud networks. Such accounts are often opened by exploiting vulnerable individuals or are rented out for commissions, allowing masterminds to distance themselves from the actual flow of money.
The Future Crime Research Foundation (FCRF), which studies cyber-enabled financial crimes, has repeatedly flagged the growing misuse of mule accounts in India.
According to FCRF, a majority of high-value cyber fraud cases—ranging from investment scams and fake trading platforms to “digital arrest” and impersonation frauds—depend heavily on networks of mule accounts to launder money and evade detection.
“Without mule accounts, large-scale cyber fraud becomes extremely difficult,” FCRF notes. “These accounts obscure money trails and slow down investigations. Targeting local mule networks is therefore critical to breaking the larger cyber crime ecosystem.”
Probe widened, more arrests likely
Police officials said the investigation is ongoing and inter-district and inter-state links have not been ruled out. Investigators are analysing the seized mobile phones and laptop for chat records, transaction data and contact networks that could lead to other members of the racket and potential masterminds.
Authorities are also examining whether the seized accounts were used in other categories of cyber fraud, including online investment scams, fake call centre operations and identity theft.
Signal of tougher enforcement
The Kandhamal case reflects a broader shift in policing strategy, with law enforcement agencies increasingly targeting the financial infrastructure of cyber crime rather than only end-level operatives.
Experts believe that sustained action against mule account networks could significantly disrupt cyber fraud operations, which continue to inflict heavy financial losses on individuals across the country.
For now, the ₹6 crore Kandhamal case underlines a hard reality of the digital age: cyber fraud is not just a technological crime, but one deeply rooted in local networks and systemic abuse of the banking system—an area where enforcement agencies are now tightening the noose.
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.
