Hyderabad: The Cyberabad police on Thursday arrested seven bank officials for their alleged involvement in facilitating mule accounts used by cybercriminals. According to a press note released by the police, certain bank employees and field officers colluded with cybercrime fraudsters and account suppliers by illegally opening current accounts, bypassing due diligence norms, and receiving commissions in return.
Details of the Arrests
Those arrested include a branch manager and an assistant manager of a public sector bank in Kukatpally, a former manager of a public sector bank in Pragathi Nagar, three field officers from two different private banks, and an assistant manager of a private bank. The officials were arrested in connection with five separate cases.
Modus Operandi
A Cyberabad police official stated that the accused bank officials and field staff were found to be actively facilitating the opening of bank accounts for cyber fraudsters. They knowingly ignored Know Your Customer (KYC) norms and verification procedures. In some instances, field verification was conducted only after receiving illegal commissions, thereby enabling fraudulent transactions. The official added that unusually high-value transactions were carried out through these accounts, far exceeding normal banking activity.
Violation of Regulations
Despite clear indicators of suspicious transactions, the accused failed to initiate mandatory safeguards, reporting mechanisms, and preventive measures as required under banking regulations and anti-money laundering (AML) guidelines. The police emphasized that their actions demonstrate serious misuse of official positions, breach of trust, and direct or indirect support to organized cybercrime networks, resulting in financial losses to innocent victims.
The investigation is ongoing, and the police are probing further links to larger cybercrime syndicates. The arrested officials have been booked under relevant sections of the Indian Penal Code and the Information Technology Act.
