In a major crackdown on organised cybercrime, police in Bihar’s Katihar have arrested four individuals, including a bank manager and a chartered accountant, for their alleged role in operating mule accounts used in large-scale financial fraud.
The accused are suspected to have facilitated crores of rupees in fraudulent transactions by providing and managing bank accounts for cybercriminal networks.
Mule accounts used to route fraud money
According to investigators, the accused were involved in creating and operating mule accounts—bank accounts used to receive and transfer illegally obtained funds.
These accounts were allegedly used by cyber fraudsters to:
- Park money obtained through scams
- Layer transactions to avoid detection
- Withdraw or transfer funds across multiple channels
Police said the transactions linked to these accounts ran into several crores, indicating a well-organised network.
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Bank manager and CA played key roles
Among those arrested are a bank manager and a chartered accountant, whose involvement has raised serious concerns about professional misconduct and internal system abuse.
Authorities allege that:
- The bank manager facilitated account openings and bypassed verification norms
- The chartered accountant helped structure and manage financial flows
- Other accused assisted in operating and coordinating the accounts
The collusion enabled fraudsters to legitimise and move illicit funds smoothly through the banking system.
Investigation reveals organised cyber network
Preliminary findings suggest that the accused were part of a larger cyber fraud syndicate, working in coordination with unknown operators across different regions.
Police are now examining:
- Bank records and transaction histories
- Digital devices seized from the accused
- Links to other fraud cases across states
Officials believe the network may have connections to interstate or even international cybercrime operations.
Crackdown on mule account networks intensifies
Law enforcement agencies have increasingly focused on mule account networks, which play a critical role in enabling cyber fraud.
Authorities have warned that professionals and bank officials involved in such activities face serious criminal liability, including charges of cheating, criminal conspiracy, and money laundering.
Further arrests likely
Police officials have indicated that the investigation is ongoing and more arrests are likely as the financial trail is traced.
The case highlights the growing sophistication of cyber fraud networks and the role of insider collusion in exploiting banking systems for illegal financial activities.
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.
