Limbayat police in Surat have arrested two accused in connection with a ₹5.5 crore cyber fraud case registered in Mahisagar district, officials said. Investigators believe the fraud was executed through an organised network that used multiple mule bank accounts to circulate the illicit proceeds before transferring the money to the bank account of an educational trust located in Mahisagar.
According to police, the accused avoided using the funds directly and instead routed the money through several bank accounts opened or operated solely for the purpose of moving funds. Such accounts, commonly referred to as mule accounts, are often used in cyber crimes to obscure the origin of money and conceal the identity of the final beneficiaries.
Investigators said the systematic layering of transactions made it difficult to trace the money trail in the initial stages. However, advanced analysis of banking data and transaction patterns eventually revealed that the funds were being funnelled into a single trust account after passing through multiple intermediaries.
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Police officials said the trust’s bank account came under scrutiny after banks flagged repeated high-value deposits and withdrawals as suspicious. Based on alerts generated by banking surveillance systems, a closer examination of the account activity was carried out, leading to the registration of a formal complaint at the Lunawada taluka cyber crime police station.
During the course of investigation, it emerged that the accused allegedly received a commission of around 25 per cent for transferring the fraud proceeds into the trust’s account. Officials believe this commission structure was designed to incentivise the safe movement of funds while keeping the operational network insulated from direct exposure.
The cyber fraud came to light after multiple victims from different locations reported unauthorised online transactions and fraudulent digital payments. Acting on these complaints, the cyber crime unit analysed transaction logs, bank records and digital footprints. The analysis revealed that the money trail extended across several districts before converging into a single account.
Based on technical evidence and banking documentation, police identified the suspects and carried out arrests in Surat. The accused were taken into custody by Limbayat police and produced before a court, which subsequently handed them over to Mahisagar police for further investigation.
Police officials said custodial questioning will now focus on identifying other members of the network, including those who provided mule bank accounts and those who may have offered technical or logistical support. Investigators are also attempting to trace the original source of the cyber fraud operations and determine whether the activities were being controlled from a central location.
Authorities are examining whether the educational trust was aware that its bank account was being used to park proceeds of cyber crime. As part of this process, the trust’s banking records, KYC documents and digital transaction logs are being thoroughly scrutinised to establish accountability and intent.
Police also confirmed that one of the arrested accused is facing proceedings in a separate criminal case registered earlier in Surat. Officials clarified that the two cases are being investigated independently and that the earlier case will not affect the legal process in the cyber fraud matter.
With cyber-enabled financial crimes showing a steady rise, police said further arrests could not be ruled out as the investigation progresses. Officials emphasised that the case highlights the growing sophistication of cyber fraud networks and the increasing misuse of mule accounts and institutional bank accounts to launder illicit funds.
Authorities have urged citizens to regularly monitor their bank statements and digital payment histories and to report any suspicious transactions immediately to the cyber crime helpline or the nearest police station.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
