Karnataka: Cyber fraud racket busted, 12 arrested
July 9, 2025
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Home Bharat

Karnataka: Cyber fraud racket busted, 12 arrested for selling bank accounts to online scam syndicates

Twelve men from Uttar Pradesh and Bihar have been arrested in Bengaluru for running an interstate cyber fraud racket selling bank accounts of innocent individuals to online scamsters. The gang used these accounts to launder funds from phishing, investment scams, and job frauds across India

by Indresh
May 15, 2025, 01:25 pm IST
in Bharat, Karnataka
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In a major crackdown on cyber-enabled financial fraud, the Adugodi police have dismantled an interstate network illegally selling innocent individuals’ bank account details to cybercriminals, facilitating large-scale online scams. Twelve people have been arrested in connection with the case, following a complaint from a woman who was duped in a fraudulent work-from-home scheme.

The Fraudulent Promise of Easy Income

The investigation was launched based on a complaint filed by Sumiya Banu, who reported being conned after responding to a message offering commission-based work-from-home opportunities. After initial earnings were credited to gain her trust—Rs 800 as “profit” and Rs 10,000 for an earlier Rs 5,000 payment—the fraudsters gradually lured her into transferring over Rs 5 lakh in stages, promising to double the amount.

As the scam progressed, the criminals claimed her credit score was too low to withdraw the promised funds and demanded an additional Rs 3.24 lakh to “complete the transaction.” When the money was not refunded, she realised she had been tricked and approached the Adugodi police.

Massive Seizure Uncovers Scale of Operation

During the investigation, police arrested the following individuals, who are all natives of Uttar Pradesh and Bihar: The arrested are Harshvardhan (25), Sonu (27), Prakash Yadav (23), Gorakhnath (20), Sanjit Kumar (25), Akash Kumar Singh (19), Amit Yadav (19), Gaurav Pratap Singh (22), Brijesh Singh (20), Raj Mishra (21), Tushar Mishra (22), Shailesh Gautam (25).

From the arrested accused, police recovered 400 SIM cards,140 ATM cards,17 cheque books,27 mobile phones and 22 bank passbooks from various banks.

According to police, these tools were used to operate numerous fake or proxy bank accounts, which were later sold to unknown cybercriminals nationwide to launder money collected through phishing, investment scams, and online job frauds.

How the Racket Worked

The investigation, led by Inspector Ravikumar, found that Sonu, a labour contractor based in Mumbai, was at the centre of the racket. He had recruited migrant workers, opened bank accounts in their names, and then sold the account credentials and passbooks to cyber fraud syndicates.

Each bank account was sold for a commission of Rs 18,000 to Rs 20,000 for a nationalised bank account and Rs 3,000 for a local or cooperative bank account.

The accounts were being used to mask the identity of real fraudsters, making it difficult for victims and law enforcement to trace stolen funds.

From Mumbai to Prayagraj: Tracking the Network

Upon interrogating Sonu, police learned he had sold the bank details to Raj Mishra, a native of Prayagraj, Uttar Pradesh, and two others. Acting on this information, a special police team travelled to Prayagraj and arrested 10 additional suspects actively participating in the network.

Sonu confessed that he earned Rs 1,500 commission per account by exploiting workers under his employment and passing their financial records to cybercriminals.

Officials Warn Public About Emerging Cyber Threats

Senior police officials described the bust as a major success in the fight against cybercrime, as the gang enabled highly organised and anonymous financial fraud. They warned that such operations are growing more common and sophisticated, often using real, active bank accounts of unwitting individuals to siphon money from victims across the country.

The Adugodi police are continuing the investigation and working with cybercrime units and financial intelligence teams to trace the flow of funds, identify the end beneficiaries, and detain further accomplices involved in the scheme.

Authorities have urged citizens to remain cautious and avoid sharing personal financial information or documents. Suspicious online job offers, particularly those that promise high returns for minimal work, should be treated with scepticism and reported immediately to the cybercrime helpline (1930) or the nearest police station.

Topics: Online scam syndicatesAdugodi policeCyber fraud racket
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