Mumbai Police Bust Inter-State Cyber Fraud Network Using Mule Bank Accounts; 38 Cases Linked to ₹25.45 Crore Transactions

Mumbai : Mumbai’s Dongri Police have uncovered an alleged inter-state network that was reportedly supplying “mule bank accounts” to cyber fraudsters involved in online gaming, cricket betting and casino-related scams. The investigation has so far linked 17 bank accounts to 38 cybercrime cases registered across multiple states, with transactions worth approximately ₹25.45 crore coming under the scanner.

Three people have been arrested in connection with the alleged racket, while police are continuing their search for other suspected members of the network. Investigators believe the operation may be larger than what has been uncovered so far and are analysing financial and digital evidence to identify additional individuals and accounts.

The arrested accused have been identified as Nikhil Kamalkumar Jaswani, 28, from Pipariya in Madhya Pradesh; Rahul Shyamlal Parwani, 32, also from Madhya Pradesh; and Jai Biharilal Tirathani, 26, from Katni, Madhya Pradesh.

The case has been registered under relevant provisions of the Bharatiya Nyaya Sanhita, 2023, along with Sections 66(C) and 66(D) of the Information Technology Act, which deal with identity theft and cheating by personation using computer resources.

How the alleged racket operated

According to police, the network allegedly targeted financially vulnerable people and persuaded them to open bank accounts in their own names in return for small monetary incentives.

Once the accounts were opened, the account holders allegedly handed over important banking materials, including passbooks, debit cards, cheque books and SIM cards. These accounts were then allegedly used by members of the network to receive and transfer money connected to cyber frauds.

Such accounts, commonly referred to as “mule accounts”, can make it difficult for investigators to immediately identify the actual beneficiaries of fraudulent transactions because the accounts are registered in the names of people who may not be directly involved in the original scam.

The Dongri Police cyber team reportedly began investigating the suspected racket after receiving confidential information. Investigators followed the financial trail and gathered technical intelligence before conducting operations in different locations.

Investigation spread across Mumbai and other regions

The probe was not limited to Dongri. Police reportedly traced links to several areas, including Govandi and Mankhurd in Mumbai, as well as Belapur and Panvel in Navi Mumbai and Osmanabad.

During an operation near Sandhurst Road railway station on Dr Maheshwari Road in Dongri, police arrested the three accused.

Investigators have also identified five other suspected members who are currently wanted. Police are working to locate them and determine their alleged roles in the network.

Three women — Jyoti Patil, Jaya Dongre and Nisha Dongre, all residents of Lallubhard Compound in Mankhurd — have also been served notices under Section 35(3) of the Bharatiya Nagarik Suraksha Sanhita as part of the investigation.

Huge haul of banking and digital material seized

The scale of the alleged operation became clearer after police recovered a large quantity of banking and electronic material from the accused.

The seizure included 42 bank passbooks, 70 debit cards, 36 SIM cards, 23 mobile phones, three laptops, one tablet, 12 bank kits and a car. Police have estimated the total value of the seized property at around ₹50 lakh.

Investigators are now conducting a detailed technical examination of the seized phones, laptops and other digital devices. The data could potentially provide information about additional bank accounts, transactions, suspected fraudsters and other people connected with the operation.

38 cybercrime cases traced to 17 accounts

Police said they have so far identified or seized information relating to around 110 bank accounts during the investigation. Banking information for 17 of these accounts has been received and examined.

The preliminary verification of bank transactions, technical data and cybercrime complaints has reportedly revealed links between these 17 accounts and 38 cybercrime cases or complaints registered across India.

The cases span several states and Union Territories, highlighting the inter-state nature of the alleged operation.

The cases identified so far include:

• Maharashtra: 2 cases
• Karnataka: 9 cases
• Telangana: 6 cases
• Delhi: 2 cases
• Madhya Pradesh: 2 cases
• Uttar Pradesh: 5 cases
• Kerala: 2 cases
• Tamil Nadu: 2 cases
• Gujarat: 2 cases
• Jammu and Kashmir: 1 case
• West Bengal: 3 cases

Police are now coordinating the investigation and examining whether the same network may have been involved in other cyber fraud complaints that have not yet been connected to the identified accounts.

₹25.45 crore financial trail under investigation

One of the most significant aspects of the investigation is the amount of money that reportedly moved through the 17 bank accounts.

According to preliminary information gathered by investigators, transactions worth approximately ₹25.45 crore took place through these accounts over a period of roughly one-and-a-half to two months.

Police are now conducting a detailed financial investigation to determine where the money originated, where it was transferred and who ultimately benefited from the transactions.

Investigators are expected to examine beneficiary accounts, transaction patterns, digital communications and other financial records to establish the complete money trail.

The large volume of transactions has also raised the possibility that the accounts were being used repeatedly for different cyber fraud operations rather than being linked to a single incident.

Digital evidence could reveal more suspects

The Dongri cyber team is now examining the electronic devices seized during the arrests. Police believe the digital evidence could provide crucial leads about other people involved in the alleged racket.

Investigators are expected to examine messages, call records, banking-related communications, transaction details and other digital information found on the devices.

The technical investigation could also help establish connections between the accused, account holders, suspected cyber fraud operators and individuals who may have benefited from the money transferred through the accounts.

As the financial investigation expands, police are also expected to coordinate with law-enforcement agencies in other states where complaints connected to the accounts were registered.

Police warn citizens against renting out bank accounts

The case has also prompted police to issue a warning to the public about the risks of allowing someone else to operate their bank account.

Authorities have urged people not to hand over their bank accounts, debit cards, passbooks, cheque books, SIM cards or mobile phones to others in exchange for quick financial rewards.

Police have specifically cautioned citizens against sharing sensitive banking information such as OTPs, PINs, internet banking passwords and other account credentials.

Even when a person is not directly involved in a cyber fraud, allowing their bank account to be used by someone else can potentially result in the account being investigated if suspicious funds pass through it.

Police have therefore advised account holders to monitor their bank transactions regularly and immediately report any suspicious or unexplained activity to their bank and the authorities.

Investigation continues

The arrests mark an important development in the investigation, but police believe several questions still need to be answered. Investigators are continuing efforts to trace the five wanted suspects and identify other individuals who may have participated in the alleged network.

The examination of the seized digital devices and banking records is expected to provide further clues about the operation and its possible links to cybercrime cases across the country.

With 38 cases already connected to 17 accounts and ₹25.45 crore in transactions under scrutiny, the investigation could potentially uncover a much wider financial and cybercrime network.

For now, the Dongri Police are following the financial trail, analysing digital evidence and coordinating with police authorities in different states to establish the full extent of the alleged racket and identify everyone involved.

News source: Information for this article was gathered from a variety of reliable news outlets.