Cybercrime Mule Account Network Uncovered in Telangana's Suryapet District
A clandestine and profitable cybercrime network is emerging in the rural villages of Telangana's Suryapet district, where unemployed youth are reportedly opening and supplying multiple mule bank accounts to cyber fraudsters. Some individuals are allegedly earning between ₹5,000 and ₹10,000 per day from these illicit activities, providing a significant income source in areas with limited job opportunities.
Police Investigations and Case Details
To date, approximately a dozen suspects have been summoned for questioning in connection with 46 cases, though no arrests have been made in these specific instances. Since February 25, the Kodad town police have registered 30 cases against local residents for operating accounts flagged by the National Cybercrime Reporting Portal due to suspected links to multiple cyber fraud complaints. Additionally, police in Nereducherla and Munagala have each registered eight mule account cases, involving suspects holding accounts in branches of the District Co-operative Central Bank Ltd (DCCB) and Telangana State Co-operative Apex Bank Ltd.
Most of the suspects are unemployed, with some being farmers or holding low-paying private jobs in Hyderabad. A Kodad town police official noted that the majority of accounts were opened in Kodad branches of five banks, leading to most cases being registered there. These banks include Bank of Baroda, HDFC Bank, Nalgonda District Co-operative Central Bank Ltd, Yes Bank, and City Union Bank.
Expansion to Other Areas and Crypto Connections
Similar cases have surfaced in other parts of Suryapet district, including villages such as Munagala, Tripuraram, Pollaram, Vallapuram, and Akupamula. Several men in their 20s and 30s are alleged to have opened multiple bank accounts that were later utilized in cyber fraud operations. Preliminary investigations have revealed that many suspects opened accounts across different banks and were also operating Binance crypto wallets, raising suspicions that fraud proceeds are being routed through a complex chain of bank and cryptocurrency transactions.
A senior police official explained, "There are lakhs of rupees worth of transactions through these wallets, and we suspect that crime proceeds from cyber fraud victims are deposited into mule accounts before being transferred to linked crypto wallets to purchase cryptocurrency. This cryptocurrency is then transferred to multiple users believed to be cyber fraudsters."
Operation Crackdown 1.0 and Statewide Impact
Police investigations are being conducted under 'Operation Crackdown 1.0,' launched by the Telangana Cyber Security Bureau (TGCSB) on February 25. In an official statement, Director General of Police B Shivadhar Reddy stated that the primary objective is to dismantle the network of mule bank accounts that serve as the backbone of cybercrime operations. According to TGCSB data, 4,775 mule accounts were active in Telangana in 2025. During the initial phase of the operation, 1,888 of these accounts were verified, revealing links to 9,431 cybercrime cases registered nationwide, including 782 cases from Telangana.
The DGP's office highlighted suspicions of an organized network possibly involving bank staff or agents. For instance, a single account in the Sultan Bazar branch in Hyderabad was linked to 496 criminal cases across the country, while in Suryapet district, 298 accounts in just four bank branches were confirmed to be connected to cybercrimes.
Arrests and Claims of Wealth
While rural bank accounts are allegedly used as conduits to move cyber fraud proceeds, senior police officials reported that over 100 accused, including some bank account holders and a few bank officials, have been arrested statewide for their involvement in more than 500 cases linked to mule accounts. Some suspects have claimed that certain mule account providers, who entered the illegal activity in 2024, have made profits exceeding ₹1 crore and purchased agricultural lands, SUVs, and gold. However, police stated they have yet to find evidence to substantiate these claims.
A police officer added, "Some suspects claim that one of the mule account providers is a former paramilitary constable who left his job to venture into this business. There are numerous claims regarding the wealth of these operators, and we are in the process of collecting evidence."
On average, each suspect has opened about 10 accounts, with police suspecting daily incomes ranging from ₹5,000 to ₹10,000. Many are natives of Suryapet district villages but operate from Hyderabad, with authorities currently analyzing the intricate bank and crypto wallet transactions to unravel the full extent of this cybercrime network.
