Authorities have uncovered a large network of mule bank accounts allegedly used by cybercriminals in Uttar Pradesh’s Moradabad district, with investigators identifying more than 1,000 bank accounts that were allegedly used to receive and transfer proceeds of cyber fraud committed across the country. So far, suspicious transactions exceeding ₹2 crore have been traced through these accounts. Six FIRs have been registered within the past week, five accused have been arrested, and further investigation is underway.
The accounts were identified during the analysis of complaints registered on the National Cyber Crime Reporting Portal. Investigators found that the accounts were allegedly used to channel money obtained through cyber fraud committed in multiple states. According to the preliminary investigation, transaction values ranged from as little as ₹1,000 to several lakh rupees.
Investigators also found that the mobile numbers and email addresses used at the time of opening several accounts were subsequently changed and replaced with different contact details. In some cases, accounts were opened in the names of business entities, while in others, investigators suspect that bank accounts were created using individuals’ identity documents without their knowledge or consent. Authorities believe this points to an organised network engaged in creating and operating mule accounts.
The Cyber Police Station is now examining the identities of the account holders, banking records, and the source of funds. The investigation has revealed that money was transferred into these accounts from bank accounts located in various districts of Uttar Pradesh as well as Delhi, Haryana, Punjab, Maharashtra, and Rajasthan, indicating that the network may be linked to cybercrime operations spanning multiple states.
Separate FIRs have been registered in the Dilari, Bhojpur, Katghar, and Majhola police station areas. Based on the interrogation of the five arrested accused, investigators are working to identify additional suspects and individuals involved in operating the mule accounts. Digital evidence and banking records are also being analysed to trace other members of the network.
According to the Future Crime Research Foundation, mule bank accounts have become one of the primary financial tools used by cybercriminals to launder illicit proceeds. Instead of receiving stolen funds directly, fraudsters route money through third-party accounts, making it more difficult for investigators to identify the original source of the funds and the ultimate beneficiaries. In many cases, account holders are persuaded to provide access to their bank accounts in exchange for small commissions, while in others, forged documents or stolen identities are allegedly used to open accounts.
A Researcher at Algoritha Security said that changing registered mobile numbers and email addresses linked to bank accounts is a common tactic used by cybercriminals to conceal their digital identity and evade detection. The researcher added that banks should strengthen Know Your Customer (KYC) verification, monitor suspicious transactions more effectively, and enhance risk management systems to identify unusual banking activity at an early stage.
Police said the investigation is continuing, with digital evidence, banking records, and telecom data being examined to determine the full scale of the network. Authorities are also seeking to establish the total amount of cybercrime proceeds routed through these accounts and identify any additional individuals involved. Further legal action will be taken if more evidence or accomplices are uncovered during the investigation.
