Massive cyber fraud ring exposed: CID raids reveal 40,000 illegal bank accounts
In a significant breakthrough against rising cybercrimes, Karnataka CID’s Cyber Crime wing has dismantled a large-scale online fraud network that was operating using thousands of mule bank accounts. The operation, described as one of the biggest of its kind in the state, has sent shockwaves through the digital fraud ecosystem.
On February 6, CID teams carried out coordinated raids at more than 100 locations across Karnataka. The raids resulted in the arrest of 13 main accused who were allegedly acting as masterminds of the operation. Investigators discovered that the gang had created and managed more than 40,000 mule accounts to facilitate cyber fraud.
Mule accounts are bank accounts opened in the name of ordinary people but controlled by criminals to transfer and withdraw illegally earned money. CID officials said the accused collected ATM cards, bank passbooks and account details from gullible individuals by offering them small payments.
These accounts were then handed over to organised cybercriminal groups who used them to receive money from victims of online scams, investment frauds, phishing attacks and digital payment frauds. The money was later withdrawn through ATMs or transferred to other accounts to avoid detection.
During interrogation, it emerged that many of the account holders had no idea their details were being misused for criminal purposes. The fraudsters mainly targeted students, daily wage workers and unemployed youth, luring them with easy money.
A senior CID official said the operation was launched after a sharp rise in cyber fraud complaints from across the state. “We noticed a pattern where stolen money was being routed through multiple accounts. This led us to track down the mule account operators,” he explained.
So far, more than 42,000 suspicious accounts have been identified, and efforts are underway to freeze them in coordination with various banks. The CID is also examining electronic devices, call records and financial transactions linked to the arrested accused. Experts believe that breaking the mule account chain is crucial to stopping cyber fraud. Without such accounts, criminals will find it difficult to move stolen money. The CID has urged citizens to remain alert and never share bank documents or ATM cards with strangers. “Even lending your account for a small commission can make you part of a serious crime,” officials warned.
With cybercrimes increasing every year, the latest operation is seen as a major step toward cleaning up Karnataka’s digital financial system. Further investigations are continuing to trace more suspects and recover defrauded money.
