CBI Uncovers 8.5 Lakh 'Mule Accounts' in Pan-India Cyber Fraud Network
The Central Bureau of Investigation (CBI) is set to question bank officials in connection with a massive cybercrime syndicate that used 8.5 lakh "mule accounts" to launder illicit funds. The probe revealed that officials at 743 bank branches across India allegedly failed to conduct proper due diligence and report suspicious transactions, enabling the network. The CBI alleges a pan-India conspiracy, with bank staff conniving with criminals to open accounts, often using forged documents, to channel fraud proceeds.
Unpacked:
A mule account is a bank account, often opened with fake or stolen identities, used to receive and transfer illicit funds. Cybercriminals use these accounts to move stolen money, making it harder for authorities to trace the original source or final recipient of the funds.
Bank officials allegedly failed to conduct proper Customer Due Diligence (CDD) during account opening and did not generate Suspicious Transaction Reports (STR) for accounts showing abnormal activity. These oversights allowed criminals to open and operate large numbers of mule accounts without detection.
The investigation has revealed the involvement of bank agents, aggregators, bank correspondents, middlemen, and e-Mitra operators in addition to bank officials. Several individuals from these groups have already been arrested for their roles in the conspiracy.
The CBI has registered a First Information Report (FIR), conducted raids at 42 locations, seized incriminating evidence such as mobile phones and KYC documents, and arrested nine suspects, including bank staff and middlemen. The operation is part of intensified efforts to dismantle cyber fraud and financial crime networks in India.