Karnataka CID Uncovers Massive Rs 100 Crore Cyber Fraud Network
The Criminal Investigation Department's cybercrime command cell in Karnataka has made a significant breakthrough in combating financial cybercrime. Following an extensive two-day operation, investigators have exposed a sophisticated racket involving over 40,000 mule accounts that facilitated illegal transactions worth at least Rs 100 crore over the past two years.
Coordinated Raids Lead to Multiple Arrests
In a meticulously planned crackdown that began on February 5, CID teams conducted coordinated raids at more than 100 locations across 29 districts in Karnataka. This operation resulted in the arrest of thirteen individuals identified as mule account "herders" from various parts of the state, including Bengaluru. These suspects are currently undergoing intensive interrogation as authorities work to unravel the full extent of the criminal network.
Key Accused Linked to 96 Cybercrime Cases Nationwide
DGP (CID-cyber command) Pronab Mohanty revealed crucial details about the investigation. Two primary accused—one operating from Shivamogga and another from Bengaluru—were found to have jointly conducted transactions totaling Rs 55 crore through 19 separate mule accounts during the investigation period. "Prima facie, these two accused are linked to 96 cybercrime cases reported across the country," Mohanty stated. He further disclosed that the masterminds behind this extensive racket are based in Delhi and Dubai, indicating an international dimension to the criminal enterprise.
How the Mule Account Racket Operated
Police investigation has uncovered the modus operandi of this sophisticated fraud network. The racket was operated through a hierarchical structure of mule herders who systematically procured banking documents, ATM cards, and cheque books from unsuspecting individuals in exchange for monetary compensation. These compromised accounts were then utilized by cybercriminals to route illicit funds obtained through various fraudulent activities.
The investigation revealed that most mule account holders came from working-class backgrounds and were frequently unaware that their bank accounts were being exploited for cyberfraud. "Many were paid a monthly commission ranging from Rs 10,000 to Rs 20,000 and did not comprehend the scale or criminal nature of the activities conducted through their accounts," explained an investigating officer involved in the case.
Diverse Cybercrime Activities Funded Through Mule Accounts
The compromised accounts served as conduits for multiple types of cybercrime, including:
- Illegal online betting operations
- Digital arrest fraud schemes
- Various other sophisticated online scams
This discovery highlights how mule accounts have become essential infrastructure for organized cybercrime, allowing criminals to launder money and obscure the trail of illicit funds.
Legal Proceedings and Ongoing Investigation
Following the raids and arrests, authorities have registered nearly 20 First Information Reports (FIRs) as they continue to build cases against those involved. The CID's cybercrime unit is now focusing on tracing the international connections of the racket and identifying additional participants in this widespread criminal network.
This crackdown represents one of the most significant actions against financial cybercrime in Karnataka's recent history and underscores the growing sophistication of digital fraud networks operating across state and national boundaries.
