Hyderabad: In a major crackdown on cybercrime networks operating across the country, authorities in Telangana carried out a large-scale operation that led to the arrest of 208 individuals allegedly involved in facilitating cyber fraud through mule bank accounts.
Those arrested include bank employees, software engineers, students, businesspersons, private employees and women who were allegedly allowing cybercriminals to use their bank accounts to route fraudulent funds.
According to sources familiar with the investigation, the arrests were made as part of a state-wide campaign titled “Operation Crackdown 1.0.” The operation, launched on February 25, aimed to identify and dismantle bank accounts being used by cyber fraudsters to move stolen money across multiple financial channels.
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During the course of the investigation, a total of 1,549 cases were registered and 626 suspects were identified. Out of them, 208 individuals were arrested. Among those held were two bank employees, software engineers, seven students, two lecturers, a government employee and 15 women.
Investigators found that most of the accused were functioning as so-called mule account holders. These individuals allowed cybercriminals to use their bank accounts for transferring fraudulent funds in exchange for commissions of up to five per cent on each transaction routed through their accounts.
Officials said the mule account network enabled cybercriminals to rapidly transfer fraud proceeds across multiple accounts, making it difficult for investigators to trace the origin and final destination of the money.
As part of the operation, 137 teams conducted simultaneous inspections at 137 bank branches across Telangana. A total of 512 personnel were involved in the coordinated drive.
During the verification process, investigators examined 1,888 suspicious bank accounts that were linked to 9,451 cyber fraud cases reported across different parts of the country.
Preliminary estimates suggest that the financial loss linked to these cases is around ₹100 crore.
During the raids, investigators seized 63 mobile phones along with 208 bank passbooks and cheque books that were allegedly used to facilitate cyber fraud transactions.
Renowned cyber crime expert and former IPS officer Prof. Triveni Singh explained that mule accounts have become a critical tool for cybercriminals to move stolen funds quickly.
“After extracting money from victims, cybercriminals transfer the funds through several mule accounts. These accounts are often opened in the names of individuals who hand over their banking details, ATM cards and credentials in exchange for small commissions,” he said.
According to him, the rapid movement of money across multiple accounts makes it extremely difficult to track the complete transaction trail.
Investigators also found that in some cases bank accounts were opened online using fake identities, fabricated KYC documents and proxy mobile numbers. Such practices allow cybercriminals to operate anonymously and move funds quickly through multiple digital channels.
In one case, investigators discovered that an accused person had used bank accounts belonging to his own family members to route cyber fraud proceeds.
During the investigation, authorities also identified 52 associates who were allegedly playing key roles in maintaining the mule account network. Their responsibilities included recruiting individuals to open bank accounts, arranging SIM cards, collecting ATM cards and PIN details, providing internet banking credentials and coordinating cash withdrawals or fund transfers once fraudulent money was deposited.
Investigators also observed that several bank branches had an unusually high number of suspicious accounts, highlighting the need for stricter monitoring and stronger KYC verification procedures within the banking system.
Cybersecurity experts warn that this model of cybercrime is expanding rapidly, with criminals combining technical tools and social networks to recruit individuals willing to lend their bank accounts.
Experts advise the public never to share bank account details, ATM cards, PIN numbers or internet banking credentials with anyone.
They also stress the importance of reporting cyber fraud incidents immediately. Victims can file complaints through the National Cyber Crime Reporting Portal or contact the cybercrime helpline 1930.
According to experts, while the rapid growth of the digital economy has made financial transactions easier and faster, it has also created new opportunities for cybercriminals. In such an environment, vigilance, awareness and timely reporting remain the most effective safeguards against cyber fraud.
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.
