Telangana Police's 'Operation Crackdown' busts mule bank account webs

Telangana Police conducted a statewide enforcement drive titled "Operation Crackdown 1.0" on February 25 to identify and dismantle mule bank account networks facilitating cyber frauds across India. The operation was conceptualised and led by the Telangana State Cyber Security Bureau after analysing cyber fraud data from the National Cyber Crime Reporting Portal and identifying suspicious bank accounts opened in Telangana that were linked to complaints from different parts of the country.

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Operation Scale and Results

During the first-of-its-kind simultaneous drive, 137 police teams comprising 512 personnel carried out surprise checks at 137 identified bank branches across the state. Officials verified 1,888 suspicious mule bank accounts linked to 9,451 cybercrime cases across India, involving an estimated loss of around Rs 100 crore. The operation led to the registration of 549 FIRs, identification of 626 suspects and the arrest of 208 accused persons.

Profile of the Accused

Among those arrested are 15 women, seven students, two lecturers and one government employee from the Electricity Department. Most of the accused allegedly acted as mule account holders who allowed cyber fraudsters to route money through their bank accounts in exchange for commissions of up to 5 per cent per fraudulent transaction. Police also seized 63 mobile phones and 208 bank passbooks and cheque books that were allegedly being used to facilitate cyber fraud activities. Officials said the accused belonged to diverse professional and social backgrounds, including bank employees, software engineers, businessmen, private employees, healthcare workers, students and daily wage labourers, with ages ranging from 19 to 45 years.

Modus Operandi of Fraud Networks

Investigators also found that some mule account holders had opened online or virtual bank accounts using fake identities, fabricated KYC documents and proxy mobile numbers to help fraudsters operate anonymously and move money rapidly through multiple accounts. In one case in Warangal, a mule account holder allegedly used bank accounts belonging to his own family members to route cyber fraud proceeds. During the investigation, police also identified 52 associates and facilitators who allegedly helped recruit individuals to open bank accounts, arrange SIM cards, collect ATM cards and PIN details, and coordinate withdrawals or transfers after fraudulent amounts were credited.

Bank Collusion and Lapses

Two bank employees, from Bank of Maharashtra and Jubilee Hills Merchant Cooperative Bank, were arrested for their suspected role in facilitating irregular account openings and failing to follow proper KYC verification procedures. Police also found that in 19 bank branches, more than 20 mule accounts were identified, highlighting the need for stricter monitoring and improved KYC verification by banks.

Legal Action and Official Stance

Officials said many of the bank accounts verified during the operation were linked to cyber fraud complaints reported in other states through the NCRP system, even though there were no direct victims in Telangana. In such cases, police invoked provisions under the Bharatiya Nyaya Sanhita, particularly Section 112, which enables legal action against persons who assist or facilitate organised crime. The Telangana Police said the operation reflects a zero-tolerance policy against cybercrime infrastructure operating from the state and warned that mule account networks will not be allowed to operate from Telangana to cheat victims anywhere in India. Further investigations are underway to trace handlers, track fund-flow chains and uncover larger interstate cybercrime networks.

Advisory for Citizens

Authorities also advised citizens not to share their bank accounts, ATM cards, PINs, OTPs or internet banking credentials with anyone, warning that allowing others to use bank accounts for financial transactions--even for commissions--can lead to criminal liability. (ANI)