Karnataka CID Busts Major Mule Account Racket in Statewide Cybercrime Crackdown
In a significant blow to organized cyber fraud networks, the Karnataka Criminal Investigation Department (CID) has successfully dismantled a large-scale mule account racket, resulting in the arrest of 12 alleged masterminds and the flagging of over 42,000 suspicious bank accounts. This extensive operation, conducted by the CID's Cyber Command, underscores the escalating threat of cybercrime in the region and the authorities' intensified efforts to combat it.
Statewide Raids Uncover Widespread Fraud Network
The crackdown involved simultaneous raids across more than 29 districts in Karnataka, targeting individuals suspected of supplying bank accounts to cybercriminals for illicit activities. The operation, carried out on Thursday and Friday, led to the seizure of 25 ATM cards, 13 cheque books, 12 mobile phones, and other incriminating materials. Police officials have registered 17 First Information Reports (FIRs) so far, with expectations of more cases and arrests in the coming days as the investigation progresses.
How the Mule Account Racket Operated
According to an official press release, the racket was orchestrated by a network of so-called "mule herders" who procured bank accounts by collecting identity documents, ATM cards, and cheque books from unsuspecting individuals. In exchange for payments ranging between Rs 10,000 and Rs 20,000, these account holders often remained unaware that their financial details were being misused, exposing them to severe legal and financial repercussions.
The compromised accounts were then sold or leased to cybercriminals to facilitate transactions linked to various online scams, including illegal betting operations and "digital arrest" fraud schemes. Funds obtained through these cyber fraud activities were routed through the mule accounts and withdrawn via ATMs or transferred further to obscure the money trail, making detection challenging for law enforcement.
Intensified Surveillance and Ongoing Investigations
In response to a sharp rise in cybercrime cases across Karnataka, the police have ramped up surveillance on mule account operations in recent months. The arrested individuals include Dharmapal, Suhail, Aqeel, Mohammad Mujamil, Patel Jitendra Kumar, and Mohan Kumar, with cases registered at various cybercrime police stations in Bengaluru. Additionally, Juned Pasha, Majeed Madini, and Shaheed Alam were arrested in Kolar, while Chandrashekhar and Ramakiran were held in Tumkur, and Sharthkumar was apprehended in Shivamogga.
The police have emphasized that further investigation is underway to identify additional links within the network and trace the proceeds of crime. With the statewide operation still ongoing, more arrests are anticipated as authorities continue to dismantle these cyber fraud networks and protect citizens from financial exploitation.
