Cyber police busts mule account network, 21 booked after i4C flags 7,200 fraud accounts in Kashmir

April 7, 2025 by News Desk

Representational Image

Cyber Police Kashmir has busted a network of mule bank accounts used in major cyber frauds, booking 21 people, 19 from Srinagar, after the Indian Cyber Crime Coordination Centre (i4C) flagged 7,200 such accounts in Kashmir.

Spokesperson in a statement issued here to news agency JKNS reads, a mule bank account is an account used to receive and transfer illicit funds on behalf of others, often in return for a commission. These accounts—belonging to individuals, shell companies, and enterprises—are primarily scouted through social media platforms such as Telegram and Facebook, and are then remotely controlled by fraudsters operating from outside Jammu Kashmir and even from overseas.

Once these accounts are set up, they are integrated into illegal payment gateways and used by criminal syndicates to collect deposits from victims on fake investment websites, offshore betting and gambling platforms, and fraudulent stock trading portals. Funds received in these mule accounts are immediately layered and diverted to other accounts or converted into cryptocurrency to obscure the money trail, it reads.

Bulk payout facilities provided by banks are also being misused in this process to distribute proceeds quickly. These accounts typically remain active for a short span—often less than a week—before being flagged due to suspicious transactions. However, within this brief window, transactions worth crores of rupees are executed and funneled across a chain of accounts, the statement reads.

Cyber Police Kashmir has also discovered that several local kingpins are managing the operations of these accounts, acting as recruiters and handlers. These individuals onboard people—often from economically weaker sections—by offering commissions for account access, it reads.

In response to a request by Cyber Police Kashmir, the Indian Cyber Crime Coordination Centre (i4C), MHA, New Delhi has shared a list of 7,200 mule bank accounts operating from Kashmir alone—created since January 2025. This figure is expected to be much higher as the investigation progresses.

To date, Cyber Police Kashmir has registered 04 FIRs, and more are underway. Preventive security action has been initiated against 21 individuals, 19 of whom belong to Srinagar district, it reads.

The hotspots for mule account activity include areas like Mehjoor Nagar, Natipora, Nowgam, Lasjan, Padshahibagh, Nowhatta, Khanyar, Rainawari, Soura, Batmaloo, Noorbagh, Qamarwari, Parimpora, Mujgund, Bemina, among others. Similar activities have been reported in other districts including Ganderbal, Kangan, Sumbal, Bandipora, Baramulla, Pulwama, Anantnag, Kulgam, and Shopian.

Cyber Police Station Kashmir Zone, Srinagar, has strongly advised citizens not to sell or rent their bank accounts, company registration certificates, or Udhyam Aadhaar registration documents to any individual or entity. Any such involvement in laundering illicit funds could result in serious legal consequences, including arrest under provisions related to organized crime and cyber fraud, it reads.

Statement further reads, banks are being encouraged to strengthen checks to detect misuse of accounts for illegal payment gateways.

Citizens are urged to report any suspicious cyber activity immediately via helpline 1930 or online at www.cybercrime.gov.in. Cyber Police Kashmir remains fully committed to dismantling these networks and securing the financial ecosystem of the Valley, reads the statement.

Meanwhile, SSP Srinagar Imtiyaz Hussain, while speaking to media persons in Srinagar as per news agency JKNS, said that cyber fraud has recently emerged as a major threat. “So far, around 7,200 mule accounts have come to our notice. We have filed four FIRs under organised crime in connection with this. From the identified accounts, 20 to 21 individuals have been arrested,” he said.

He further stated that in the current year, Cyber Police has managed to recover over Rs 70 lakh that had been siphoned off from victims. “The recovered amount has already been returned to the rightful owners through the court process,” he said.

Highlighting the need for strong preventive mechanisms, SSP Imtiyaz appealed to banks to introduce regulatory checks to detect mule accounts. “Accounts receiving large sums of money within days of being opened should be immediately flagged and reported to law enforcement. Last month, we also seized 8 kilograms of heroin in Srinagar, which was directly linked to terror funding. The consignment was brought from Pakistan, and the proceeds were being used to finance terrorist activities,” he added. (JKNS)