Unemployed Youth in Andhra Pradesh Supply Mule Bank Accounts to Cyber Fraudsters
In a disturbing trend across Andhra Pradesh, youngsters are allegedly opening and supplying mule bank accounts to cyber fraudsters, driven by the lure of easy money or sheer unemployment. These accounts serve as critical tools for a wide range of scams, including investment frauds, digital arrest rackets, job cons, and other illicit activities. Despite ongoing police crackdowns, enforcement officials report that new gangs, often composed of unemployed youth and low-income earners, continue to proliferate, providing these accounts for commissions.
High Commissions and Widespread Exploitation
Investigations have uncovered that these youngsters are selling both current and savings accounts, with earnings reaching up to ₹15,000 to ₹20,000 per savings account. Commissions on current accounts range from 0.5% to 2.5%, making this a lucrative but illegal venture. K Bhavani Prasad, inspector of the cybercrimes police station in Vizag city, stated, "During investigation, we found that the youngsters, including unemployed youth and some doing low earning jobs, are supplying both current accounts and savings accounts to cyber fraudsters. Some reportedly earn Rs 15,000 to Rs 20,000 per each saving account. The gangs were paid commission ranging from 0.5% to 2.5% by cyber fraudsters for providing access to current bank accounts, which were then used to route and withdraw illegal funds."
Case Studies and Modus Operandi
In specific cases, two youngsters—one from Vizag and another from Vijayawada—managed to open bank accounts of several individuals by offering them ₹5,000 to ₹10,000 per account. Later, they sold these accounts for as little as ₹20,000 each to cyber criminals. These accounts were then used to route and conceal proceeds from online frauds across the country. Police investigations reveal that gangs often target labourers and low-income groups, borrowing documents, taking debit cards, and paying a few thousand rupees for each account. Alarmingly, some bank employees have allegedly violated Know Your Customer (KYC) norms, facilitating this illegal activity.
Unaware Victims and Direct Sales
Nearly half of the mule account holders may be completely unaware that their accounts were exploited for criminal purposes. Once activated, these accounts are typically handed over to masterminds for commissions. In some instances, youths directly sell their own bank accounts to cyber crooks, bypassing middlemen entirely. This direct approach highlights the desperation and financial pressures faced by many in the region, as unemployment and economic hardship push individuals toward risky and illegal means of income.
The persistence of this issue underscores the need for enhanced vigilance from both law enforcement and banking institutions to curb the supply of mule accounts and protect vulnerable populations from becoming unwitting accomplices in cyber fraud.
