Bengaluru | A major cyber fraud network operating out of Mangaluru in Karnataka has been uncovered, where local bank accounts were allegedly used to route money obtained from online scams in India and abroad. Two men have been arrested in connection with the case for allegedly running a “crypto-as-a-service” operation that provided mule bank accounts to international cybercriminals.
Investigations revealed that the accused targeted local residents and acquaintances by luring them with the promise of a legitimate online trading business. Once the victims agreed, the accused collected their bank account details and other banking credentials. These accounts were then allegedly used to transfer and withdraw funds generated through various cyber fraud schemes, allowing the perpetrators to conceal their digital trail.
The arrested accused have been identified as Mohammed Aneesh (30) and Saleeth Ahmed M (32), both residents of different localities in Mangaluru. The case came to light after a complaint was filed on March 10 by Mohammed Sinan, who alleged that acquaintances had taken control of his bank account under the pretext of using it for trading activities. He later discovered that suspicious financial transactions were being carried out through the same account.
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During the investigation, it emerged that the accused had been operating the network for some time. They allegedly convinced individuals to open bank accounts or share existing account details by promising quick profits through online trading platforms. These accounts were then reportedly linked to international cybercrime networks, which used them to route money obtained through online fraud in different parts of the world.
Authorities have so far identified at least 37 bank accounts connected to the accused. These accounts had already been flagged for suspicious activity on the National Cyber Crime Reporting Portal. Investigators also found that the accounts were linked to more than 88 cyber fraud complaints registered across several states in India. The complaints include cases related to investment scams, online trading fraud, lottery scams, and digital payment fraud.
As part of the investigation, banks were alerted about the suspicious transactions, following which several accounts were frozen to prevent further misuse. Investigators believe that a significant amount of money may have been routed through these accounts, and a detailed financial analysis is currently underway to determine the full scale of the operation.
Cybersecurity experts say that mule accounts play a crucial role in cybercrime networks. Such accounts are used by fraudsters to move illegal funds through multiple transactions, making it difficult to trace the original source of the money. In many cases, these accounts belong to individuals who are either misled or persuaded with financial incentives to share their banking details.
Renowned cybercrime expert and former IPS officer Prof. Triveni Singh said that organised mule account networks have become a key component of modern cyber fraud operations. According to him, “Cybercriminals often begin with social engineering tactics, offering people easy money, trading opportunities, or fake job offers. Once an individual shares their banking details, the account is quickly integrated into a fraud network and used to move stolen funds. This helps criminals hide their identity and complicates the investigation process.”
Experts have cautioned that individuals should never share their bank account details, debit card information, OTPs, or internet banking credentials with unknown persons or entities. Offers that involve using a personal bank account for trading or business purposes on behalf of others should be treated as potential cyber fraud attempts.
Investigations into the case are still ongoing, and authorities suspect that the network may not be limited to the local level. Efforts are currently underway to identify other individuals who may have assisted in arranging mule accounts or facilitating financial transactions linked to the fraud operation.
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.
