Karnataka CID Busts Massive Cyber Fraud Network

In a landmark operation against online crime, Karnataka’s Criminal Investigation Department (CID) has dismantled a sprawling cyber fraud ring that relied on tens of thousands of illicit bank accounts. Authorities described the crackdown as one of the most extensive of its kind in the state, sending shockwaves through the digital crime ecosystem.

On 6 February, CID’s Cyber Crime wing conducted simultaneous raids at over 100 locations across Karnataka. The coordinated operation led to the arrest of 13 key individuals, alleged to be the masterminds behind the fraudulent network. Investigators uncovered that the gang had created and managed more than 40,000 “mule accounts” to facilitate the transfer and laundering of illicit funds.

Mule accounts are bank accounts opened in the names of ordinary citizens but controlled by criminals. CID officials reported that the accused obtained ATM cards, passbooks, and account details from unsuspecting individuals, offering small payments in exchange. These accounts were then used by organised cybercriminal groups to channel funds obtained through online scams, phishing attacks, fraudulent investment schemes, and digital payment frauds. Funds were withdrawn via ATMs or transferred to other accounts to obscure the money trail.

Interrogations revealed that most account holders were unaware of their accounts’ involvement in criminal activity. Vulnerable groups, including students, daily wage earners, and unemployed youth, were targeted with promises of easy money.

A senior CID officer explained the impetus for the operation: “A sharp increase in cyber fraud complaints revealed a recurring pattern—stolen funds were being routed through multiple accounts. Tracking these mule accounts allowed us to identify the operators behind them.”

Authorities have so far identified over 42,000 suspicious accounts, with efforts underway to freeze them in collaboration with banks. Electronic devices, call records, and financial transactions linked to the accused are being scrutinised as part of the ongoing investigation. Experts note that dismantling the mule account network is essential to disrupting cyber fraud, as criminals rely on these accounts to move stolen money undetected.

Citizens have been warned to exercise caution: sharing account details or ATM cards, even for small commissions, can implicate them in serious criminal offences.

The operation is viewed as a significant step in safeguarding Karnataka’s digital financial system, with further investigations ongoing to identify additional suspects and recover defrauded funds.

Key Figures from CID Operation