In a major crackdown on cyber-enabled financial crimes, the Central Bureau of Investigation (CBI) has arrested nine individuals following searches linked to the operation of approximately 8.5 lakh mule accounts in over 700 branches of various banks across the country. These accounts were allegedly being used to perpetrate cyber frauds, including the so-called “digital arrest” scams.
The action was undertaken as part of Operation Chakra-V, a multi-pronged initiative launched to tackle rising incidents of cybercrime. Based on specific inputs, the CBI conducted coordinated searches at 42 locations across Rajasthan, Delhi, Haryana, Uttarakhand, and Uttar Pradesh.
According to the agency, the mule bank accounts were being operated by organised cybercriminal networks engaging in impersonation, fraudulent advertisements, investment frauds, and UPI-based scams.
“These cyber fraudsters are being helped by the commissions and omissions of certain bank officials, agents, aggregators, bank correspondents, middlemen and e-Mitras who are facilitating in opening of the mule accounts used for receiving and transferring proceeds of cyber frauds as well as enabling withdrawals from such accounts,” the agency said in a statement on Thursday.
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The CBI initially instituted a preliminary enquiry to uncover the broader conspiracy involved in the creation of these mule accounts, the complicity of banking personnel and intermediaries, and to assess the adherence to existing regulatory norms.
The investigation revealed that over 8.50 lakh such accounts had been opened across more than 700 bank branches without adherence to prescribed Know Your Customer (KYC) norms, customer due diligence, or initial risk assessment protocols.
“The branch managers of the banks have also failed to conduct Enhanced Due Diligence in respect of certain suspicious transaction alerts generated by the systems. Some of the banks have also failed to send the acknowledgment/ thanking letters to customers to indirectly verify the addresses of the account holders,” the agency noted.
The agency further alleged that these actions violated the Reserve Bank of India’s Master Circular and internal banking guidelines.
“Accordingly, a First Information Report has been registered for offences of criminal conspiracy, cheating, forgery, use of forged documents as genuine… and also offence of criminal misconduct by bank officials under the Prevention of Corruption Act,” the CBI said.
During the searches, the CBI seized incriminating documents, mobile phones, digital evidence, bank account opening forms, transaction records, and KYC documents. The nine individuals arrested include middlemen, agents, account holders, and bank correspondents allegedly involved in facilitating the opening and operation of these mule accounts.
Earlier this month, the agency had searched 10 locations across Delhi, Haryana, Uttar Pradesh, and Maharashtra, arresting a person in Mumbai accused of supplying pre-activated SIM cards and mule bank accounts to cybercriminal syndicates.
In a related development last month, the agency arrested 11 alleged cybercriminals in two cases. In the first, six individuals were arrested for allegedly defrauding Japanese citizens, following searches at 19 locations in Delhi, Haryana, and Uttar Pradesh. In the second, searches were carried out at 42 locations across Assam, West Bengal, Bihar, Uttar Pradesh, Maharashtra, Telangana, Karnataka, and Tamil Nadu, leading to the arrest of five persons for allegedly selling unauthorised SIM cards being used for various forms of cyber fraud.
Published – June 26, 2025 08:14 pm IST
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