BENGALURU: In a major breakthrough against rising cybercrime in Karnataka, the Criminal Investigation Department (CID) has unearthed a massive cyber fraud network operating through mule bank accounts across the state. After months of surveillance and intelligence gathering, CID teams carried out coordinated raids at more than 100 locations and exposed a sophisticated racket that used innocent people’s bank accounts for illegal online transactions.
The large-scale operation, conducted on February 6, led to the arrest of 13 key masterminds behind the organised cybercrime syndicate. Officials said the accused had created and managed over 40,000 mule accounts used to launder money obtained through various online frauds.
According to CID officials, the racket functioned by collecting bank account details, ATM cards and personal information from unsuspecting citizens. These accounts were then handed over to cyber fraudsters in exchange for money. In most cases, account holders were unaware that their bank details were being misused for illegal activities.
During the raids, investigators seized several mobile phones, laptops, SIM cards, debit cards and other digital evidence that revealed the scale of the operation. Preliminary investigations have indicated that thousands of online fraud cases across Karnataka and other states were linked to this mule account network.
How the racket operated
CID sources explained that the accused targeted financially vulnerable individuals, including students, daily wage workers and unemployed youth. They were promised small commissions or quick money in return for sharing their bank account details.
Once the fraudsters obtained access to these accounts, they used them to receive money from victims of cyber scams such as online job frauds, investment scams, phishing attacks and fake loan offers. The stolen money was quickly transferred through multiple accounts to make tracing difficult, and eventually withdrawn through ATMs.
“These mule accounts were acting as a bridge between the fraudsters and the victims. They helped criminals hide their real identity and evade law enforcement agencies,” a senior CID officer said.
Statewide crackdown
The operation was one of the biggest coordinated actions against cybercrime in Karnataka in recent years. More than 100 CID teams were deployed simultaneously across several districts, including Bengaluru, Mysuru, Mangaluru, Hubballi-Dharwad, Belagavi, Kalaburagi and Davanagere.
Officials said the investigation began after a sharp rise in online fraud complaints over the past few months. Patterns in financial transactions pointed to a common network of mule accounts used repeatedly for various crimes.
Following detailed technical analysis and tracking of suspicious bank transactions, CID teams identified the network’s main operators and planned a coordinated strike to dismantle the entire system.
Over 42,000 illegal accounts identified
During the probe, investigators found that more than 42,000 bank accounts were being actively used as mule accounts. Many of these accounts belonged to ordinary citizens who had no idea that they were part of a cybercrime chain.
“Most of the account holders were innocent people who were misled by the accused. They were either paid small amounts of money or promised benefits for sharing their ATM cards and bank details. They had no knowledge that their accounts were being used for criminal activities,” officials said.
The CID has now begun freezing suspicious accounts and coordinating with banks to prevent further misuse. Authorities are also in touch with cybercrime police stations across the country to identify cases linked to this network.
What are mule accounts?
A mule account is a bank account used by criminals to receive, transfer, or launder money obtained through illegal activities. Instead of using their own accounts, cyber fraudsters exploit others’ accounts to avoid detection.
These accounts play a crucial role in online scams by enabling criminals to create multiple layers of transactions, making it difficult for police to trace the original source of the fraud.
Warning to the public
Following the bust, the CID has urged citizens not to share their bank account details, ATM cards, OTPs or internet banking credentials with anyone. Officials warned that allowing others to use personal bank accounts can land individuals in serious legal trouble, even if they are unaware of the crime.
“People must understand that giving access to their bank accounts, even for small commissions, is a criminal offence. We appeal to the public to remain cautious and report any suspicious approaches immediately,” a CID spokesperson said.
