Telangana police have uncovered a large, organised cyber fraud operation in Khammam district in which nearly ₹650 crore was allegedly laundered through mule bank accounts and routed to international cybercrime networks operating from Southeast Asia, officials said.
Investigators have so far verified transactions worth ₹547 crore, while the total amount moved through the identified accounts is estimated at around ₹650 crore. The probe has led to the arrest of 18 to 20 accused, with several others still absconding.
The case surfaced following a complaint filed on December 24 by a 30-year-old unemployed man from a village in Sathupally mandal, who alleged that he was coerced into opening bank accounts that were later taken over and misused for cyber fraud activities.
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110 mule accounts used since 2021
According to the investigation, the accused had been operating the network since 2021, systematically targeting unemployed youth and daily-wage labourers in and around Sathupally. Victims were induced to open bank accounts in exchange for small payments ranging between ₹3,500 and ₹10,000.
In total, around 110 bank accounts were opened and used as mule accounts to receive and transfer proceeds of cyber fraud. Police said these accounts formed a critical link between domestic victims of online scams and overseas fraud syndicates.
Investigators found that some of the accounts were opened in the names of business entities and family members linked to the key accused, enabling large volumes of money to be moved without immediately triggering suspicion.
Money moved abroad via layered transfers
Officials said money siphoned from cyber fraud victims across India was first deposited into the mule accounts. From there, it was transferred through multiple layers of current accounts held in the names of individuals and companies, making the trail complex and difficult to trace.
A significant portion of the funds was subsequently converted into cryptocurrency before being sent to cybercrime operators based abroad. Preliminary estimates suggest the accused may have earned over ₹60 crore as commission for facilitating the laundering of illicit proceeds.
Foreign cybercrime links under scanner
Police said the mule accounts were supplied to international cyber scam networks, with operational links traced to Cambodia and Myanmar. These networks are believed to be involved in large-scale online fraud, including investment scams, impersonation fraud and digital payment cons.
The involvement of overseas operators has added an international dimension to the investigation, prompting coordination with central agencies and financial intelligence units.
Large transaction volumes flagged
During the probe, investigators detected unusually high transaction volumes across several accounts linked to the accused. Individual accounts were found to have processed transactions running into tens and even hundreds of crores of rupees, officials said, adding that these figures are preliminary and likely to rise as deeper forensic and crypto-transaction analysis continues.
The scale and pattern of transactions indicated a well-structured and professionally run operation, rather than isolated instances of account misuse.
Money laundering angle flagged
Given the magnitude of funds involved and the cross-border flow of money, the Enforcement Directorate has been informed about the suspected money laundering aspects of the case. Further action under financial crime laws is expected once the full trail is established.
Officials said efforts are ongoing to trace additional mule accounts, identify beneficiaries abroad, and apprehend the remaining accused who are currently on the run.
Warning against mule account misuse
Investigators have reiterated that individuals who allow their bank accounts to be used for illegal transactions — even if they are not directly involved in committing fraud — can face serious legal consequences. Authorities have urged citizens, particularly unemployed youth, not to fall prey to offers of easy money in exchange for opening or sharing bank accounts.
The case is being seen as one of the largest mule-account-based cyber fraud rackets uncovered in Telangana in recent years, highlighting the growing sophistication and scale of organised digital crime networks.
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.
