Are Mule Accounts the Backbone of Modern Cyber Fraud?

₹85 Crore Cyber Fraud: Class-5 Tailors Built ‘Dollar Route’ Using Mule Bank Accounts, Earned 5–10% Commission

The420.in Staff
4 Min Read

In a startling cybercrime bust, Class-5-educated tailoring workers allegedly ran a nationwide ₹85 crore fraud network by supplying bank accounts to organised scammers, routing the proceeds through US dollar conversion and cryptocurrency and earning 5–10% commission on each transaction.

Cyber Crime Police have arrested Nadeem, Gufran and Mayur Afzal Rana. Two mobile phones, bank cheque books and a diary containing details of multiple accounts and transactions were seized from their possession.

Tamil Nadu trader’s ₹4 crore ‘digital arrest’ fraud exposed the racket

The investigation began after a trader in Tamil Nadu was duped of nearly ₹4 crore in a digital arrest scam. A portion of the defrauded money was traced to bank accounts operated from Muzaffarnagar. Acting on a complaint received through the Pratibimb portal, the cyber team analysed suspicious mobile numbers and bank trails, leading to the unravelling of the wider network.

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Poor and unsuspecting people’s accounts used as mule accounts

Police said the accused initially used their own and relatives’ bank accounts. After those accounts were frozen due to multiple complaints, they began opening or procuring accounts of poor, vulnerable and unsuspecting individuals, which were then handed over to cyber fraudsters across the country.

Within just two months, around ₹60 lakh was routed through these accounts and later converted into dollars. The key handler, Mayur Afzal Rana, allegedly used the funds to purchase cryptocurrency, making the money trail difficult to trace.

Saudi returnee brought cyber fraud know-how

One of the accused, Gufran, had recently returned from Saudi Arabia, where he was exposed to cyber fraud techniques. After returning to India about six months ago, he teamed up with Nadeem—both school dropouts working as tailors—and set up the account-supply network in exchange for commissions.

70+ complaints nationwide; ₹85 crore transaction footprint

Police said the bank accounts linked to the trio have surfaced in more than 70 cyber fraud complaints across multiple states. The total transaction value of suspected fraud money flowing through these accounts is estimated at ₹85 crore. Investigations are ongoing to identify additional accounts and beneficiaries.

Commission model: supply accounts, cut percentage, pass funds onward

During interrogation, the accused revealed they provided bank accounts to cyber fraud gangs operating in different states. Once the money was deposited, they deducted 5–10% as commission and passed the remaining amount to the main operator, who converted it into cryptocurrency and moved it further.

Police advisory

Cyber Crime Police have warned the public not to share bank accounts, ATM cards, cheque books, SIM cards or OTPs with unknown persons. Even account holders can face legal action if their accounts are used for laundering fraud proceeds.

The case highlights how organised cybercrime networks are exploiting mule bank accounts as the critical link in large-scale fraud, showing that limited formal education is no barrier when structured criminal ecosystems and digital tools are involved.

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.

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