Hyderabad | Stepping up action against the misuse of bank accounts in cybercrime, the Malkajgiri Cyber Crime Police have uncovered a mule account network in two separate cases registered over the past week. Three persons have been arrested in connection with investment fraud and part-time job scams, while court-approved refunds amounting to more than ₹16.28 lakh have been secured for victims.
According to the police, the cases were detected between January 11 and 17 during investigations into cyber-enabled financial fraud. The probe revealed that bank accounts opened in individual and business names were deliberately handed over to cyber fraudsters, enabling the receipt and onward transfer of cheated funds.
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Investment fraud and misuse of bank accounts
The first case relates to a fake investment scheme in which a current account was opened in the name of a commercial establishment and later placed under the control of cybercriminals. Through this account, around ₹16 lakh was transferred by a victim in November 2025 after being induced to invest in a fraudulent scheme.
Investigators said the account holder was aware that the funds were obtained through cheating and had received a commission for facilitating the transaction. Analysis of banking records also indicated that the same account had links to at least two other cybercrime cases registered in different States, pointing to the presence of an organised mule account network.
Part-time job fraud via messaging platforms
The second case involved a part-time job scam in which the victim was lured through a messaging platform into joining a group that offered online hotel booking-related tasks. Small payments were initially credited to the victim’s account to build trust.
Once confidence was established, the victim was persuaded to make repeated high-value payments under various pretexts, including task upgrades and commission unlocks. Investigators found that the victim ultimately suffered losses exceeding ₹47 lakh. The bank accounts used to receive and move the funds in this case were also found to be linked to cybercrime cases registered in Andhra Pradesh and Maharashtra.
Court-approved refunds bring relief
Alongside the arrests, the Cyber Crime Police Station at Malkajgiri initiated refund proceedings with court approval. In compliance with judicial orders, a total amount of ₹16,28,616 was refunded to victims, providing immediate financial relief. The police said efforts were ongoing to identify additional victims and trace further proceeds of crime for possible recovery.
Clear message on mule accounts
Investigators emphasised that renting, selling or allowing the misuse of bank accounts is a criminal offence and has emerged as a critical enabler of cyber fraud. Mule accounts allow offenders to quickly move illicit funds while concealing their identities, making detection and recovery more complex.
The police said focused action against such networks would continue, with enhanced scrutiny of suspicious banking transactions and coordination with authorities in other States.
Public advisory
The police have urged the public to remain cautious of unsolicited calls, social media advertisements and job or investment offers promising unusually high returns. Citizens have been warned against sharing banking credentials or allowing others to operate their accounts under any circumstances.
Victims of cyber fraud have been advised to immediately contact the national cybercrime helpline 1930 and lodge complaints with the nearest cybercrime police station to improve the chances of timely intervention and recovery.
Officials indicated that further arrests and recoveries are likely as investigations progress. The action is being viewed as a significant step towards dismantling mule account networks and strengthening protection for victims of cyber-enabled financial crimes.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
