Karnataka CID Cracks Down on Massive Cyber Fraud Network Using Mule Bank Accounts

The Karnataka CID’s Cyber Crime Wing has dismantled a large-scale cyber fraud network operating through thousands of mule bank accounts across the state. Following coordinated raids at over 100 locations, authorities arrested 13 key accused and identified more than 42,000 suspicious accounts. The operation highlights the critical role of mule accounts in facilitating online scams, phishing attacks and digital payment frauds, and marks a significant step towards strengthening digital financial security in Karnataka.

Cyber News Feb 7, 2026 0 24 Add to Reading List

Karnataka CID Cracks Down on Massive Cyber Fraud Network Using Mule Bank Accounts

Karnataka CID Busts Massive Cyber Fraud Network Using Mule Bank Accounts

In a major breakthrough against the growing menace of cybercrime, the Karnataka CID’s Cyber Crime Wing has dismantled a large-scale online fraud network operating through thousands of mule bank accounts. The operation is being described as one of the biggest cybercrime crackdowns in the state’s history.

On February 6, CID teams carried out coordinated raids at over 100 locations across Karnataka, leading to the arrest of 13 key accused, believed to be the masterminds of the operation. Investigations revealed that the gang had created and managed more than 40,000 mule accounts to facilitate online financial frauds.

Key Highlights of the Operation

Aspect	Details
Date of Operation	February 6
Locations Raided	100+ locations across Karnataka
Main Accused Arrested	13 masterminds
Mule Accounts Used	40,000+ accounts
Suspicious Accounts Identified	Over 42,000
Targeted Victims	Students, daily wage workers, unemployed youth
Types of Fraud	Online scams, phishing, investment frauds, digital payment frauds

Mule accounts are bank accounts opened in the names of ordinary citizens but controlled by criminal networks to transfer and withdraw illegally obtained money. CID officials stated that the accused collected ATM cards, passbooks and banking credentials from gullible individuals by offering small monetary incentives.

These accounts were subsequently handed over to organised cybercriminal groups, who used them to receive money from online scams, phishing attacks, investment frauds and digital payment frauds. To avoid detection, the funds were withdrawn through ATMs or routed through multiple accounts, making the transaction trail complex.

During interrogation, it was revealed that many account holders were unaware that their banking details were being misused for criminal activities. The fraudsters deliberately targeted financially vulnerable sections of society, exploiting their lack of awareness and unemployment.

A senior CID official noted that the operation was initiated after a sharp rise in cyber fraud complaints across the state. Pattern analysis of financial transactions helped investigators identify the mule account network, leading to this large-scale crackdown.

So far, over 42,000 suspicious bank accounts have been identified, and steps are being taken to freeze these accounts in coordination with banks and financial institutions. Authorities are also analysing electronic devices, call records and transaction data linked to the accused.

Cybersecurity experts believe that breaking the mule account chain is crucial to combating cybercrime, as these accounts form the financial backbone of digital fraud. Without them, criminals find it difficult to move and launder stolen money.

The CID has urged citizens to remain alert and vigilant, warning that sharing bank documents or ATM cards, even for a small commission, can make an individual legally liable for serious offences.

With cybercrimes rising every year, this operation is seen as a significant step towards strengthening Karnataka’s digital financial system. Further investigations are ongoing to identify more suspects and recover defrauded funds.