Srinagar, Apr 6: In a major crackdown on cyber-enabled financial crimes, the Cyber Police Station, Kashmir Zone, Srinagar, has unearthed a vast and sophisticated network involved in the creation and operation of mule bank accounts — a crucial tool in large-scale cyber frauds and financial scams.
Police revealed that 7,200 mule bank accounts—all created since January 2025—have been identified across the Kashmir Valley. During investigations into four FIRs registered by the Cyber Police, 21 individuals, including 19 from Srinagar district, have been arrested.
A mule bank account is typically used to receive and transfer illicit funds on behalf of others, often in exchange for a commission. According to officials, these accounts — opened in the names of individuals, shell companies, and small enterprises — are primarily sourced through social media platforms like Telegram and Facebook, and later controlled remotely by fraudsters operating from outside Jammu and Kashmir, including international locations.
Once activated, these accounts are linked to illegal payment gateways and used by criminal syndicates to collect money from victims via fake investment websites, offshore betting and gambling platforms, and fraudulent stock trading portals. The funds are swiftly moved through multiple accounts or converted into cryptocurrency to conceal the money trail.
Bulk payout services offered by banks are also being misused to rapidly distribute these illicit proceeds.
“These accounts are typically active for less than a week before being flagged for suspicious activity. Yet, within that short window, transactions worth crores of rupees are executed and funneled across a chain of accounts,” said Senior Superintendent of Police (SSP), Srinagar, Imtiyaz Hussain, during a press conference.
He further disclosed that local kingpins are operating within the Valley, recruiting individuals—often from economically weaker backgrounds—by offering commissions in exchange for access to their bank accounts.
“In many cases, people are unknowingly becoming part of this criminal chain by renting out their accounts or registration documents,” he said.
On the request of the Cyber Police Kashmir, the Indian Cyber Crime Coordination Centre (I4C) under the Ministry of Home Affairs (MHA), New Delhi, has shared detailed inputs identifying the 7,200 mule accounts in Kashmir. “This number is likely to rise significantly as the investigation expands,” SSP Imtiyaz added.
The hotspots for mule account activity in Srinagar include Mehjoor Nagar, Natipora, Nowgam, Lasjan, Padshahibagh, Nowhatta, Khanyar, Rainawari, Soura, Batmaloo, Noorbagh, Qamarwari, Parimpora, Mujgund, and Bemina. Similar operations have been reported in districts like Ganderbal, Kangan, Sumbal, Bandipora, Baramulla, Pulwama, Anantnag, Kulgam, and Shopian.
The Cyber Police have issued a stern advisory, urging the public not to sell or rent their bank accounts, company registration certificates, or Udhyam Aadhaar documents to any individual or organization. Involvement in such activities could attract serious legal consequences, including arrest under laws pertaining to organized crime and cyber fraud.
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