Cyber terror funding: Mule accounts under security radar, Counter Intelligence Kashmir conducts raids

Srinagar: Mule accounts have come under sharp security focus in Kashmir, with the Counter Intelligence Kashmir (CIK) wing of the Jammu and Kashmir Police on Wednesday carrying out coordinated raids at around two dozen locations across the Valley as part of a cyber terror funding probe, officials said.

According to officials, 15 searches were conducted in Srinagar, while the remaining raids were carried out in other districts. The operation is aimed at identifying and disrupting financial networks suspected of being used to facilitate terror-related activities through digital and banking platforms.

Investigators believe mule accounts - bank or digital payment accounts used to move, conceal or launder illicit funds - are being exploited by terror handlers to route money into Kashmir, particularly after sustained action against traditional hawala channels. Security agencies apprehend that such accounts are being used to transfer funds in small amounts to avoid detection while supporting logistics, recruitment, propaganda and cyber operations.

In recent weeks, dozens of people, particularly youth, have been questioned by the cyber police in Srinagar in an FIR related to mule accounts, indicating the widening scope of the investigation, sources said. Many of those questioned were allegedly contacted through online platforms or offered small commissions for allowing their accounts or digital wallets to be used for suspicious transactions.

During Wednesday’s raids, police teams seized electronic devices, bank records and digital transaction details for forensic examination, they said. Investigators are attempting to establish the complete money trail — from the origin of funds to the final beneficiaries — and identify handlers and coordinators operating from within and outside the Valley.

The action forms part of a broader crackdown by security and investigative agencies on terror financing networks in Jammu and Kashmir over the past several years. Since 2017, authorities have intensified scrutiny of financial flows linked to militancy, leading to multiple cases registered by the National Investigation Agency (NIA) and the Enforcement Directorate (ED).

Several hawala operators, separatist-linked functionaries and overground workers have been arrested, while properties allegedly acquired using terror funds have been attached. Bank accounts and business entities suspected of being used as conduits for militant financing have also been frozen.

Officials said the tightening of conventional funding routes has forced terror groups and their handlers to explore alternative methods, including digital payments, online wallets and proxy or mule accounts. In some cases, individuals were allegedly lured into opening bank accounts or sharing credentials in exchange for small sums, unknowingly becoming part of terror-linked financial chains.

Security agencies say choking terror finance remains central to their counter-terror strategy. Officials indicated that more searches, questioning and legal action are likely as investigators follow the digital money trail and move to dismantle emerging funding mechanisms.

“This is a continuous process. As methods evolve, so will our response,” an official said, underlining that preventing the flow of funds to militant networks is critical to maintaining security in the region.