The Telangana Cyber Crime Police have busted a major interstate cyber fraud network involving transactions worth ₹3.7 crore, arresting a 33-year-old general store owner, Mohammed Ashfaq, for allegedly renting out his bank account to cybercriminals on commission.
Investigators said Ashfaq’s account emerged as a key conduit in at least 29 cybercrime cases across the country, including 12 cases registered in Telangana. The account was allegedly used to route proceeds from multiple online frauds, prominently online stock market and trading scams. Ashfaq was arrested in connection with one such case in which a victim was cheated of ₹49.9 lakh.
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How a local account became a national fraud conduit
According to police, Ashfaq knowingly allowed cyber fraudsters to use his bank account in exchange for commission, effectively turning himself into a critical link in a larger, organised cybercrime ecosystem. Investigators said he had met the fraud operators in New Delhi, where the account was allegedly used in his presence for online trading-related frauds.
Funds credited into the account were subsequently diverted through internet banking to multiple other accounts, creating layers that helped obscure the money trail and delay detection.
A senior police officer described the arrangement as a textbook case of the “mule account model”, in which account holders either knowingly or for monetary gain hand over control of their accounts to criminal networks. “Once money lands in such accounts, it is rapidly moved through multiple channels to distance the end beneficiaries from the original crime,” the officer said.
WhatsApp lure and the fake investment pitch
The case came to light after a victim approached the cybercrime police with a complaint detailing how he had been duped through a WhatsApp-based investment scam. According to the complaint, the victim was first contacted by a woman who identified herself as “Meena Bhat”, claiming to be associated with an investment group.
He was later added to a WhatsApp group and directed to an internal portal link, where members were encouraged to invest in what was projected as a legitimate trading opportunity. To build confidence, the victim initially invested ₹2 lakh and was allowed to withdraw small profits.
Encouraged by these early returns, he transferred larger sums into multiple bank accounts over time. The fraudsters later claimed that an IPO allocation had exceeded the invested amount and demanded additional funds to close the subscription. When the victim refused to transfer more money, he was blocked from the group and all communication channels.
One account, 29 cases
Realising that he had been cheated, the victim lodged a formal complaint. During the investigation, police traced the transaction trail and discovered that Ashfaq’s bank account had surfaced in 29 cybercrime cases nationwide. These cases included online trading frauds, investment scams and other forms of digital cheating.
Police believe the Telangana case is only one slice of a much larger interstate cyber fraud syndicate, with links extending to multiple states. Investigators are now working to identify other account holders, money mules and the principal operators controlling the network.
Warning on mule accounts
Officials said the arrest sends a strong deterrent message to individuals tempted to rent out their bank accounts for easy money. “Allowing your bank account to be used by others is not a minor lapse—it makes the account holder an active participant in serious criminal conspiracies,” an officer said.
Probe continues
The investigation is ongoing, with police examining Ashfaq’s contacts, the full flow of funds and the digital infrastructure used by the syndicate. Authorities indicated that more arrests are likely as the network is unravelled.
The case once again underlines how mule accounts have become the weakest yet most dangerous link in cyber fraud operations, enabling criminals to scale scams across states while remaining hidden behind layers of digital transactions.
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.
