Varanasi: The investigation into a suspected mule-account network used for cyber fraud in Varanasi has uncovered a money trail of around ₹12 crore routed through 860 bank accounts, with funds allegedly originating from eight states. Although police have arrested 18 people in connection with 22 cases registered over the past three months, the alleged masterminds controlling the movement of the money remain out of reach.
A significant number of the arrested suspects are allegedly account holders who provided their bank accounts to cybercriminals in exchange for commissions. Investigators are now examining bank records, mobile data and digital transactions to identify the people who allegedly controlled the accounts and directed the movement of the funds.
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₹12 Crore Routed Through 860 Mule Accounts
According to the investigation, cyber fraud proceeds from eight states reached different mule accounts in Varanasi over the past six months. Police are trying to establish who sent the money to these accounts and where it was transferred after reaching them.
Instead of receiving fraudulent proceeds directly into their own accounts, cybercriminals allegedly routed the money through mule accounts. The funds were then transferred rapidly through multiple accounts, making it difficult for investigators to establish a direct link between the original victim, the money trail and the final beneficiary.
₹8 Crore Transactions Found in One Account
One of the accounts under scrutiny belongs to Anurag Maurya, a resident of Kotwan in the Sarnath area. Police found three complaints related to financial fraud associated with the account.
After examining nearly two years of banking records, investigators found transactions worth around ₹8 crore through the account. A case was subsequently registered by the cyber cell. Investigators are now examining how much of this amount was allegedly linked to cyber fraud, where the money originated and which accounts ultimately received or withdrew it.
Chetganj, Bhelupur and Sarnath Emerge as Key Areas
Of the 22 cases registered in connection with mule accounts, the highest number have been reported from Chetganj, Bhelupur and Sarnath police station areas. Fourteen people have been arrested from these three areas.
The accused allegedly provided their bank accounts to cybercriminals after being promised easy earnings or commissions. Police are now examining their communications and financial records to determine who approached them, how the accounts were operated and how much commission they allegedly received for each transaction.
Layering Used to Conceal the Money Trail
The investigation has revealed a pattern in which money allegedly obtained through cyber fraud, digital arrest scams and online investment fraud is first deposited into mule accounts. It is then moved through several layers of bank accounts.
This process, commonly referred to as layering, can make it difficult to trace the original source and final beneficiary of the money. In some cases, investigators suspect that current accounts may also have been rented out or opened in the names of other individuals.
After being moved through multiple accounts, the money may allegedly be withdrawn through ATMs or transferred through other financial channels. Police are therefore examining both banking transactions and cash withdrawals to identify the final recipients.
Mobile Phones and Bank Records Under Scrutiny
Investigators are analysing the mobile phones, bank accounts, digital transactions and contact lists of the arrested suspects. The focus is on identifying the people who allegedly controlled the account holders and issued instructions regarding the movement of funds received from different states.
Cyber police are also seeking information from banks regarding suspicious accounts and transactions. Complaints registered on the National Cyber Crime Reporting Portal (NCRP) are being linked with the investigation to establish whether the same accounts were used in multiple fraud cases.
Several mule accounts remain under investigation.
Renowned cyber crime expert and former IPS officer Prof. Triveni Singh said mule accounts have become a critical financial layer in organised cyber fraud. According to him, criminals often recruit account holders by offering commissions or promising easy income. Once funds start moving rapidly between multiple accounts, tracing the actual perpetrators becomes considerably more difficult.
The arrests in Varanasi indicate that investigators have reached several alleged lower-level participants in the network. However, the larger challenge remains tracing the alleged masterminds controlling the ₹12 crore money trail, identifying the final beneficiaries and determining whether the same network is connected to cyber fraud cases reported in other states.
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.
