Telangana Police Uncover Major Mule Account Network in Statewide Operation
In a significant crackdown on cybercrime, Telangana police have successfully dismantled a large-scale network of mule bank accounts used to funnel proceeds from online frauds across India. The operation, conducted under the banner of Operation Crackdown 1.0, has resulted in the registration of hundreds of cases and the arrest of more than 200 individuals, including bank employees who allegedly facilitated the fraudulent activities.
Operation Details and Arrests
As part of the drive, police registered 549 FIRs and apprehended 208 offenders, with two bank staff among those detained. The majority of cases were concentrated in the three city commissionerates, followed by districts such as Khammam and Suryapet. According to Telangana Cyber Security Bureau (TGCSB) Director General Shikha Goel, the operation commenced on February 25 and involved 137 special teams that scrutinized 1,888 bank accounts flagged by the National Cyber Crime Reporting Portal (NCRP).
These accounts were connected to 9,451 cyber fraud complaints, involving estimated losses of around ₹100 crore. Based on the investigation, police identified 626 suspects and arrested 208 of them, including 15 women, seven students, two lecturers, and a government employee, all accused of opening or aiding mule bank accounts. Two bank employees from Hyderabad and Asifabad were also arrested for allegedly bypassing KYC norms to create such accounts.
Seizures and Zero Tolerance Approach
During the operation, authorities seized 63 mobile phones along with 208 passbooks and chequebooks from the accused. Shikha Goel emphasized that this reflects the TGCSB's zero tolerance approach towards cybercrime networks operating from the state. She stated, "No mule account network will be allowed to operate from Telangana to cheat victims anywhere in India." Further investigations are ongoing to trace handlers, fund flow chains, and larger interstate cybercrime networks.
How Mule Accounts Operate
Investigators explained that mule accounts are typically opened in the names of unsuspecting individuals or those willing to rent out their bank accounts for a commission. Cyber fraudsters use these accounts to move and withdraw money siphoned from victims across various states. In a concerning finding, TGCSB officials discovered that in 19 branches of different banks, more than 20 mule accounts were opened per branch, with operators collecting a five percent commission on the amounts routed through.
Police cited a case from Warangal where an accused utilized the bank accounts of family members for illegal activities. A similar pattern was observed in Kodad town, where 30 FIRs related to mule accounts were registered. So far, investigators have identified 52 facilitators involved in recruiting account holders, supplying SIM cards, and managing the withdrawal or transfer of fraud proceeds.
Interstate Connections and Legal Actions
Officials noted that most of the mule accounts traced in Telangana were linked to cyber fraud cases reported in other states. Police have invoked section 112 (petty organised crime) of the Bharatiya Nyaya Sanhita against the accused and have informed respective state police for the execution of prisoner transit warrants. This operation highlights the growing threat of cyber fraud and the collaborative efforts needed to combat it effectively.
