The Aryavarth Express New Delhi, March 3: Maharashtra, Uttar Pradesh and Rajasthan are among the top 10 states identified as high-risk zones for “mule accounts” used by cyber crime networks to siphon and launder illicit funds, officials from the Ministry of Home Affairs (MHA) said.
Other hotspots include Haryana, Delhi, Dadra and Nagar Haveli and Daman and Diu, Karnataka, Madhya Pradesh, Bihar and Tamil Nadu. The Indian Cyber Crime Coordination Centre (I4C), a specialised wing under the MHA, has flagged these regions for the growing misuse of bank accounts to route proceeds of cyber fraud.
A mule account is a bank account controlled—knowingly or unknowingly—by an individual to receive and transfer illegally obtained funds on behalf of criminals. Cyber fraudsters typically deposit stolen money into such accounts and instruct holders to withdraw cash, transfer funds to other accounts, or route transactions through cheques, often for a small commission. Victims are frequently lured through fake job offers, work-from-home schemes, social media ads, or online relationship scams promising easy earnings.
Data compiled by I4C highlights the scale of the problem. In Jharkhand’s Jamtara district, long considered a cyber fraud hub, more than 350 mule accounts were detected in 2025. Approximately Rs 7 crore was withdrawn through ATMs and cheques, while an additional Rs 3.8 crore was routed via these accounts. Nearly 5,000 ATM IDs and over 20 cheque branches were linked to the transactions.
In Haryana’s Nuh district, authorities identified over 1,000 mule accounts this year, with withdrawals totalling Rs 18 crore. Around Rs 0.8 crore was routed in the initial transaction layer, involving more than 1,400 ATM IDs and 75 cheque branches.
Officials said the deliberate layering of transactions across multiple accounts and regions is aimed at obscuring the money trail and complicating enforcement efforts. Investigators have also noted that several cybercrime networks are shifting operational bases to countries such as Cambodia, Vietnam and Myanmar, while continuing to use mule accounts within India to channel funds—adding a transnational dimension to the challenge.
According to the Central Bureau of Investigation (CBI), nearly 8.5 lakh mule accounts were identified in 2025 across around 700 bank branches nationwide. The surge has prompted banks and enforcement agencies to tighten due diligence norms and enhance transaction monitoring systems.
To raise awareness, banks have begun distributing comic books featuring popular fictional characters Chacha Chaudhary and Sabu to educate customers about financial fraud and the risks of allowing their accounts to be misused.
Officials also expressed concern that some Business Correspondents (BCs) may have been compromised by criminal networks to facilitate the opening of mule accounts, particularly in remote and economically vulnerable areas where awareness of banking procedures is limited.
The MHA has urged states to intensify vigilance, strengthen coordination between banks and law enforcement agencies, and expand digital literacy campaigns. Authorities have advised citizens not to share banking credentials or transfer funds on behalf of unknown individuals, warning that account holders can face prosecution if their accounts are used for illegal activities.
With cyber fraud cases on the rise nationwide, dismantling mule account networks remains a key pillar of India’s broader strategy to combat digital financial crimes.
