Shivamogga: A city-based man has been arrested in connection with a large-scale cyber fraud operation after investigators uncovered his alleged role in supplying bank accounts and financial credentials to online criminal networks, enabling frauds running into tens of crores of rupees across the country.
The accused, Sharath Kumar, also known as Gunda, a resident of Tunga Nagar and a driver by profession, is alleged to have acted as a key intermediary in creating and managing multiple bank accounts used for online fraud. Investigators say the accounts were used to receive, route and withdraw proceeds from cyber crimes reported in several states.
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According to the police complaint, the case came to light after Sharath allegedly approached his acquaintance Amit, who runs a tea stall in the city, and sought access to his bank account. Sharath is said to have asked for the passbook, ATM card and the mobile number linked to the account, assuring Amit of a fixed commission to be paid every fortnight in return for the use of the account.
Trusting the assurance, Amit reportedly handed over the requested banking details. However, weeks later, Sharath informed him that the account had been frozen by the bank. Growing suspicious, Amit visited the bank branch to verify the status, where he was reportedly informed that as many as 51 cyber crime complaints had been linked to transactions conducted through his account.
Alarmed by the revelation, Amit lodged a formal complaint with the police, triggering a detailed probe by the district cyber crime unit. Investigators subsequently traced the transactions and linked them to a broader network of bank accounts allegedly operated or controlled by Sharath.
During the course of the investigation, the police arrested Sharath and produced him before the court, which remanded him to judicial custody.
Searches conducted in connection with the case led to the seizure of 18 passbooks, 25 ATM cards, seven cheque books, two mobile phones and two QR codes. The materials, investigators said, indicated the systematic use of multiple bank accounts — commonly referred to as “mule accounts” — to facilitate illegal money transfers linked to online fraud schemes.
Police findings suggest that at least 19 bank accounts connected to Sharath were used in cyber fraud cases registered across various parts of the country. Officials said more than 96 cases of fraud have so far been traced to these accounts.
Preliminary financial analysis indicates that citizens were allegedly duped of around ₹55,43,56,248 through the network. Of this, transactions worth approximately ₹11,48,42,898 were found to have been transferred through the identified accounts during the period under scrutiny. Further analysis is underway to determine the final trail of the funds and identify additional beneficiaries.
Investigators believe the accused provided bank credentials to organised online fraud groups, who then used the accounts to collect money from victims under various pretexts, including fake investment schemes, digital arrest scams and impersonation frauds.
Police sources said the case highlights the growing threat posed by mule account networks, where individuals allow their bank accounts to be misused in exchange for commissions, often without fully understanding the legal consequences.
The investigation is ongoing, with authorities examining whether more individuals were involved in procuring bank accounts or facilitating withdrawals. Efforts are also underway to identify and trace victims linked to the remaining fraud cases.
The police have cautioned citizens against sharing bank details, ATM cards or mobile-linked credentials with others, warning that account holders can face criminal liability even if they claim ignorance of how the accounts were misused.
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.
