Telangana: 18 arrested for ‘mule’ bank accounts linked to Rs 547 crore cyber fraud

Khammam Police Commissioner Sunil Dutt said that the investigation revealed the accused were involved in a large, organised cyber fraud network operating systematically between 2022 and 2025.

Hyderabad: Eighteen people were arrested in Telangana’s Khammam district for operating "mule" bank accounts through which transactions amounting to Rs 547 crore linked to cyber fraud were routed, police said on Sunday.

A case has been registered against 24 accused, of whom 18 have been arrested, police said, adding that the remaining accused are absconding.

Khammam Police Commissioner Sunil Dutt said in a statement that the investigation revealed the accused were involved in a large, organised cyber fraud network operating systematically between 2022 and 2025.

He said the accused induced multiple individuals, under the guise of employment, business opportunities and monetary incentives, to open and operate bank accounts in their names.

The internet banking credentials of these accounts were collected and misused, enabling the accused to exercise control over them, the commissioner added.

Police said the accounts were used for receiving, layering, transferring and laundering proceeds of cyber fraud, attracting offences under the Bharatiya Nyaya Sanhita and the Information Technology Act, 2000.

Analysis of bank accounts linked to the accused and their associates revealed transactions totalling Rs 547 crore, police said.

The "mule" accounts were provided to cyber fraudsters on a commission basis and used for transferring funds abroad, converting money into cryptocurrencies and making withdrawals.

Police said the transactions were linked to several cyber fraud cases registered in different states, adding that further investigation is underway.