Techies to teachers: TGCSB busts ₹100 Cr mule account network in Telangana; 208 held

Hyderabad: The Telangana State Cyber Security Bureau (TGCSB) has launched a major crackdown on cyber-enabled financial crimes and arrested 208 persons, including 15 women.

The arrested persons included bank employees, software engineers, lecturers, and students. They were operating mule bank accounts that facilitated Rs 100 crore cyber frauds across India.

Codenamed ‘Operation Crackdown 1.0’, it was launched on February 25. Nearly 1,549 FIRs were registered, and 626 suspects were identified across the state.

Wide network across professions

TGCSB Director Shikha Goel on Tuesday said the arrested individuals came from diverse professional and social backgrounds, underlining the widespread nature of cyber financial crimes.

Those arrested include:

Two bank employees from the Bank of Maharashtra and the Jubilee Hills Merchant Cooperative Bank

Software engineers and private employees

Two lecturers and a government employee from the Electricity Department

Businessmen, healthcare workers, and daily wage labourers

Seven students and 15 women

The accused are aged between 19 and 45 years.

Mule accounts used for Commission

Investigations revealed that most of the accused acted as mule account holders. They allowed cyber fraudsters to use their bank accounts to route illegal funds in exchange for commissions of up to 5% on every fraudulent transaction.

Some accused allegedly opened online or virtual bank accounts using fake identities, fabricated KYC documents, and proxy mobile numbers, enabling fraudsters to transfer funds swiftly across multiple accounts while remaining anonymous.

137 teams conduct simultaneous raids

In what officials described as the first-ever simultaneous operation of its kind in Telangana, 137 police teams comprising 512 personnel conducted surprise inspections at 137 identified bank branches.

The teams verified 1,888 suspicious mule accounts linked to 9,451 cybercrime cases reported across India. The total estimated fraud linked to these accounts is about Rs 100 crore. Police seized 63 mobile phones, 208 bank passbooks, and 208 cheque books

Irregular account openings under scanner

Significantly, two bank employees were arrested for allegedly facilitating irregular account openings and failing to adhere to proper KYC verification procedures. Cases were registered by TGCSB Headquarters Police Station and Komaram Bheem Asifabad Police Station.

In 19 bank branches, officials found more than 20 mule accounts each, raising serious concerns over monitoring systems and compliance mechanisms in certain banking institutions.

Family accounts misused in Warangal

In one case from Warangal, a mule account holder was found routing cyber fraud proceeds through bank accounts belonging to his own family members.

Investigators also identified 52 additional associates and facilitators who played crucial roles in sustaining the mule network. Their responsibilities included:

Recruiting individuals to open bank accounts

Arranging SIM cards

Collecting ATM cards and PINs

Providing internet banking credentials

Coordinating cash withdrawals and fund transfers

Data-driven investigation

The operation was conceptualised after TGCSB analysed cyber fraud data from the National Cyber Crime Reporting Portal. Suspicious bank accounts opened in Telangana but linked to complaints from various parts of the country were flagged for verification and action.

Officials said the crackdown sends a strong message that individuals aiding cyber fraud, even by “renting” their bank accounts, will face strict legal consequences.

TGCSB urged banks to strengthen KYC verification and internal monitoring systems to prevent misuse of accounts for cyber crimes.