Bengaluru: In a major crackdown on mule bank accounts used in cyber fraud, the State Cyber Command Unit has arrested two alleged cyber fraudsters from Mangaluru who were reportedly linked to Chinese cybercriminal networks.
The operation was carried out under the supervision of Pronob Mohanty, Additional Director General of Police for cyber crime and narcotics.
The arrested individuals have been identified as Mohammed Anees and Saleeth Ahmed, both residents of Mangaluru.
Police officials said the accused were involved in operating mule bank accounts and facilitating financial transactions linked to cyber fraud operations run by foreign cybercriminals.
Bank accounts collected under guise of trading
Investigators said the accused allegedly obtained bank account details from members of the public by posing as operators of a trading business.
Using this pretext, they collected bank account credentials including passbooks, debit cards and cheque books from unsuspecting individuals.
These bank accounts were later used as “mule accounts”, allowing cybercriminals to route money obtained through online fraud.
Acting on specific intelligence inputs, officials of the State Cyber Command Unit tracked the suspects and carried out the operation that led to their arrest.
Police believe the two accused played a key role in facilitating financial transactions for an international cybercrime network.
Large quantity of evidence seized
During the raid, police seized several items believed to have been used in the operation.
The seized materials include four mobile phones, 18 debit cards, 17 bank passbooks, six cheque books, and a car.
Officials also recovered 1,479.31 USDT, a form of cryptocurrency widely used in digital transactions.
The confiscated materials are expected to help investigators trace the financial trail and identify other individuals involved in the network.
Link to Chinese cybercriminals
Investigations revealed that the mule account racket was operating in a systematic and organised manner with links to cybercriminals based in China.
According to police, Chinese fraudsters were looking to acquire cryptocurrency at lower prices. The arrested accused allegedly purchased cryptocurrency from individuals in India at cheaper rates.
They remained in contact with the Chinese operators through messaging platforms such as WhatsApp and Telegram.
The cryptocurrency was later sold to the foreign cybercriminals at higher rates, allowing the accused to earn profits from the transactions.
In return for these deals, payments were reportedly made to the accused in Indian rupees.
Over 70 bank accounts used
To facilitate the operation, the accused allegedly collected bank account details from residents of Mangaluru.
Police said more than 70 bank accounts were gathered and handed over to the Chinese cyber operators.
The foreign cybercriminals reportedly transferred funds into these accounts. Investigators later found that the money being routed through these accounts had been generated through cyber fraud activities.
Officials stated that the accused were aware that the funds were linked to cybercrime but allegedly continued assisting the foreign operators in order to earn financial gains.
Linked to dozens of complaints across India
Investigators also discovered that 37 bank accounts used in the racket were connected to more than 88 cyber fraud complaints registered across the country.
Authorities believe the case could be part of a larger network involved in international cyber fraud.
Police are currently examining financial records and digital evidence to trace the full extent of the operation and identify other individuals who may have been involved.
Investigation continues
Officials of the State Cyber Command Unit said further investigation is underway to track the money trail and determine the role played by other associates in the network.
Authorities are also working to identify victims whose funds may have been routed through the mule accounts used by the accused.
The case highlights the growing challenge posed by organised cybercrime networks that operate across international borders and use digital currencies and mule accounts to hide their activities.