The Bengaluru police Tuesday announced the arrests of four members of a gang allegedly involved in creating mule accounts to open shell companies for siphoning money obtained through cybercrimes. The police suspect that the gang laundered a whopping Rs 150 crore using such accounts.
Police Commissioner Seemanth Kumar Singh, in a press conference, said the gang members were part of a larger network. The accused have been identified as Lakshmish N, 33, from Nagadevanahalli in Bengaluru; Prakash H, 43, from Thathaguni village near Kanakapura Road; Sunil Kumar, 45, from JP Nagar 7th Stage in Bengaluru; and Puttaswamyya, 54, from the Ramanagara district. According to police records, Prakash and Sunil Kumar were previously taken into custody in a related fraud case filed at the North CEN police station.
According to investigating officer Umesh Kumar, the accused lured innocent people into sharing their know your customer (KYC) documents by offering money or false promises of employment. Using these details, the scammers allegedly registered shell companies and opened hundreds of current accounts in the companies’ names. These accounts were then rented out to cybercriminals to facilitate the routing and laundering of money earned through online fraud, said the police.
Inspector Kumar explained that these were not ordinary bank accounts. Each one came as a complete package, including a SIM card, passbook, cheque book, and internet banking access— everything needed to conduct transactions smoothly and anonymously. He said the network was well-organised and operated almost like a “banking service for criminals”. The accused received 20 to 30 per cent of the money as commission.
The police confiscated one laptop, four cell phones, multiple cheque books from different banks, and documents related to these shell companies. Over 100 cybercrime cases have been filed on the National Cybercrime Reporting Portal (NCRP) in connection with this racket, and 357 mule accounts have been found so far. Early estimates suggest that these accounts may have been used to launder more than Rs 150 crore.
Authorities believe that the scam could not have operated without the assistance of an insider. The police suspect that bank staff may have been involved in opening and managing these fraudulent accounts. Investigations are underway to identify and arrest those higher up in the chain who orchestrated the entire operation.
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What are mule accounts?
Mule accounts are a growing concern in India’s cybercrime landscape. These are actual bank accounts, usually opened under fictitious or stolen identities, used by criminals to move and launder illegal funds. Account holders sometimes know what is happening with their accounts, and at other times, they have no idea that their identities are being used. In either event, they become part of a much larger criminal enterprise.
Mehak Singh is an intern with The Indian Express.
