Ratlam (Madhya Pradesh): In a significant breakthrough, the cyber cell of Ratlam Police has busted a large interstate cybercrime network and arrested three individuals allegedly involved in routing proceeds of cyber fraud through mule bank accounts.
The action was taken under Operation MATRIX, launched on the instructions of the State Cyber Police Headquarters in Bhopal. Officials had placed a suspicious bank account under surveillance after detecting unusually high and frequent financial transactions.
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Investigators found that the account was registered in the name of Pratham Mittal, a 23-year-old resident of Ratlam, in which Rs 47.75 lakh was deposited on March 25, 2026. This unusually large transaction triggered suspicion, and further investigation confirmed that the account was being used as a mule account for laundering illicit funds.
The case is linked to a complaint filed by KC Sridhar of Coimbatore, Tamil Nadu, involving an internet banking and digital arrest scam amounting to Rs 67.75 lakh. During the probe, it was established that a portion of the defrauded money was routed through the Ratlam-based account.
During interrogation, accused Pratham Mittal allegedly admitted that he opened the account on the instructions of his associates Hemant Rayak and Shubham Reda in exchange for a commission, and later handed it over to the network for fraudulent use.
Police said the gang operated through multiple mule accounts, fake identities, and coordinated digital channels to circulate illicit funds across different states while attempting to conceal the origin of the money and evade detection.
Investigators have recovered mobile phones, bank documents, and other digital evidence containing chats and instructions linked to the operation of the fraud network. These findings indicate that the syndicate was functioning in a highly organised manner.
According to sources, the group was involved in multiple types of cyber fraud, including digital arrest scams, investment frauds, fake loan offers, UPI scams, and online gaming frauds, targeting victims across India.
Data from the national cybercrime helpline (1930) shows that more than 375 complaints are linked to these mule accounts, with total estimated losses of around Rs 77.72 crore.
Investigations also revealed that the network used a layering technique, transferring small amounts of money through multiple accounts to avoid banking alerts and financial monitoring systems.
In addition, fake companies and shell firms were created to give the accounts a legitimate business appearance, while they were actually being used solely for money laundering purposes.
Officials further stated that encrypted messaging applications were used for communication between members of the syndicate, helping them hide identities and coordinate transactions securely.
Cyber officials have warned that mule accounts have become one of the most critical components of modern cybercrime networks, enabling large-scale fraud and money laundering operations.
Renowned cybercrime expert and former IPS officer Prof. Triveni Singh has expressed concern over such networks, stating that, “Cybercriminals exploit weak links in the banking system and turn ordinary accounts into tools of crime”
He added that, “Mule accounts play a central role in digital arrest and investment fraud cases, and dismantling them is essential to break the entire cybercrime ecosystem”.
Authorities have urged citizens not to share bank details, OTPs, SIM cards, or personal documents with unknown individuals and to immediately report any suspicious transactions to the 1930 cybercrime helpline.
Meanwhile, forensic teams are analyzing seized devices, laptops, and financial records to trace the complete money trail, identify beneficiaries, and uncover possible international links connected to the interstate cyber fraud syndicate.
