A latest crackdown in Jammu and Kashmir led cyber police to uncover hundreds of fraudulent financial institution accounts often known as mule accounts. In 2025, throughout a press convention, officers recognized 7,200 such accounts, with estimates suggesting the quantity may attain 30,000. However why ought to bizarre residents be anxious? As a result of these mule accounts can result in them changing into a part of cyber scams—and even invite authorized penalties.
Cybersecurity skilled Arya Tyagi shared two real-life circumstances. An engineering scholar from Noida acquired a name a couple of work-from-home alternative. Although he declined to pay Rs 8,000 to register, he accepted a second supply within the finance division to assist handle transactions. Quickly, he was requested to make use of his personal financial institution accounts to obtain cash and distribute it to numerous different accounts. He earned Rs 3,000 a day—till all his accounts have been flagged and frozen as mule accounts.
In one other case, a villager from Haryana fell sufferer to a scammer providing buying and selling ideas. The scammer gained entry to his checking account and used it to commit fraud. When a girl reported being scammed, the unsuspecting villager was caught instead of the true offender.
Indianexpress.com spoke to Tyagi and Ankush Mishra, deputy superintendent of police, of the Cyber/Particular Process Pressure in Dehradun, intimately, to grasp how mule accounts work and why they’re so harmful.
In keeping with Mishra, two key phrases are concerned:
🎯Shell firms: These entities exist solely on paper. They seem respectable however don’t have any operations. Usually used to open accounts that disguise prison exercise.
🎯Mule accounts: Very like a mule carries a load, these accounts are used to switch stolen cash. The account holders could also be unaware, or they could knowingly lend their identities for small sums.
“When India’s cybercrime helpline 155260 (now changed by 1930) was launched, authorities gained the power to freeze accounts, the place rip-off cash was being credited, shortly. Scammers tailored by routing stolen cash by way of mule accounts to make detection more durable,” mentioned Tyagi.
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A ‘cash mule’ refers to a person enlisted to obtain and switch funds acquired by way of fraudulent actions. This position is pivotal within the execution of assorted monetary crimes. The involvement of cash mules introduces an extra layer of complexity, making it difficult for regulation enforcement to hint the origins of illicit transactions. There are two varieties of cash mules:
🎯Unwitting victims: Tricked into sharing Aadhaar or PAN particulars for pretend authorities schemes. Scammers use these to open accounts with out the particular person’s information.
🎯Prepared contributors: Promote entry to their financial institution accounts in change for small commissions
Initially, scammers focused every day wage earners, rickshaw drivers, and slum residents—providing Rs 500–3,000 to open accounts. “A lot of them, as a consequence of restricted training and consciousness, agreed, unaware their names have been being utilized in monetary crimes,” mentioned Tyagi.
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Now, college students are widespread targets, and are promised two per cent commissions on month-to-month transactions in return for giving entry to their accounts. When fraud occurs ultimately, the police observe the account the place the cash landed, and account holders get caught. In most mule account circumstances, the particular person whose identify is on the account finally ends up being a sufferer too—their account will get frozen by cyber police, they usually lose entry to their very own cash,” mentioned Tyagi.
“The actual scammers stay hidden. It’s the account holder who finally ends up being traced, dropping entry to their very own cash,” Mishra mentioned.
In keeping with CloudSEK’s Risk Intelligence Crew’s report, cash mules are sometimes recruited by “brokers” by way of Telegram channels or private networks. These brokers fake to run profitable companies needing assist managing giant transactions. In 2023, CloudSEK continued its investigation and uncovered a community of cash mules, posing a major danger to the Indian banking ecosystem. This report focuses on a malicious cell utility (APK) recognized as a key software for on-boarding and managing these cash mules.
“As an investigating officer, the largest problem is monitoring down the true offender particularly in case of cash laundering,” mentioned Mishra.
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What can people do to guard themselves?
If somebody suspects that their PAN card or checking account is being misused, it is necessary they arrive ahead and report it. As soon as they do, the police can alert the financial institution and take the required steps to stop any additional harm.
🟡 Don’t share your private and financial institution particulars with anybody together with relations, particularly checking account particulars, PAN card and Aadhar particulars.
🟡Don’t settle for funds from or ship cash to unknown folks: Potential victims will be unable to determine the character of cash, it was obtained by way of what modes.
Mule accounts are the right instance of how simply unsuspecting residents can flip into victims and typically into unintentional accomplices.
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The Protected Aspect
Because the world evolves, the digital panorama does too, bringing new alternatives—and new dangers. Scammers have gotten extra subtle, exploiting vulnerabilities to their benefit. In our particular characteristic sequence, we delve into the most recent cybercrime traits and supply sensible ideas that will help you keep knowledgeable, safe, and vigilant on-line.