Bengaluru: In a crackdown on cybercrime networks, Karnataka’s Cyber Crime Unit (CCU) has arrested five individuals for allegedly luring students into opening bank accounts that were later used for fraudulent activities.
The accused reportedly targeted vulnerable students by promising scholarships and financial assistance, only to misuse their bank accounts as part of organised cyber fraud operations.
Accused lured hostel students in Gadag
According to officials, the accused — identified as Raja (23), Vakdoth Vakeel (24), Zeeshan Ansari (22), Akash (32) and Sahil (22) — hail from different parts of the country, including Karnataka, Jharkhand and Chhattisgarh.
Investigations revealed that Vakeel and Raja approached students residing at a post-matric professional boys’ hostel on Kalasapur Road in Gadag.
By gaining the trust of students through false promises of scholarships and monetary benefits, they convinced them to open bank accounts in their names at the Bank of Maharashtra branch in Gadag.
Bank kits collected after account opening
Police said the accused even provided the initial deposit of ₹2,000 required to open the accounts, making the offer more convincing for the students.
“After the accounts were opened, the accused deceitfully collected passbooks, ATM cards, internet banking credentials and SIM cards linked to these accounts,” a CCU statement said.
These “mule accounts” are commonly used by cybercriminals to route and withdraw illegally obtained money, making it difficult for authorities to trace the original perpetrators.
Arrest during transit to Goa
On March 11, investigators received intelligence inputs that Vakeel and Raja were travelling to Goa to hand over the bank account kits to other members of the network.
Acting swiftly, the Cyber Crime Unit tracked their movements and intercepted them, leading to the arrest of all five suspects involved in the operation.
Seizures and wider network under probe
During the operation, officials seized eight bank kits — including passbooks, ATM cards, SIM cards and internet banking details — along with 11 mobile phones from the accused.
Preliminary investigations suggest that the suspects may have opened several more such accounts using similar methods.
“The inquiry confirmed that the accused lured innocent students to open bank accounts, which were later misused for cyber fraud. Further investigation is ongoing,” the CCU said.
Hunt on for absconding accused
Authorities have also identified at least three more individuals believed to be part of the next level of the network, who are currently absconding.
Efforts are underway to trace and apprehend them, while also identifying the full extent of the financial fraud carried out using these mule accounts.
Rising concern over mule account scams
Cybercrime officials have repeatedly warned about the growing use of mule accounts in digital fraud cases across India. Students and unemployed youth are often targeted due to their limited financial awareness and vulnerability to false promises.
Such accounts are typically used for laundering money obtained through phishing scams, online frauds and other illegal activities.
Conclusion
The arrests highlight the increasing sophistication of cybercrime networks and their exploitation of unsuspecting individuals. Authorities have urged the public, especially students, to remain cautious and avoid sharing banking details or opening accounts on behalf of unknown persons.
With investigations continuing, the Cyber Crime Unit aims to dismantle the larger network behind the operation and prevent further misuse of banking systems.