Hyderabad police bust cyber fraud ring with ₹70 crore mule network

Police in Hyderabad have dismantled a major cybercriminal network operating an extensive money laundering scheme that netted approximately ₹70 crore in fraudulent transfers. The operation relied on a sophisticated system of money mule accounts—bank profiles opened using the personal details of unsuspecting individuals—to obscure the flow of illicitly obtained funds.

Investigators discovered that the accused systematically collected sensitive banking materials from 60 to 70 persons, including passbooks, ATM cards, debit cards, internet banking credentials and SIM cards. These items were then weaponized to establish and operate shell accounts that served as conduits for moving money obtained through various online scams and cybercrimes.

The scale of the operation underscores the vulnerability of India's banking system to organized digital fraud schemes. Money mule accounts represent a critical vulnerability in the financial ecosystem, as they enable criminals to distance themselves from illicit transactions while exploiting ordinary citizens whose documents have been compromised.

The Hyderabad cyber crime branch has registered cases against the accused under relevant sections of the Indian Penal Code and the Information Technology Act. Authorities are continuing their investigation to identify additional conspirators and trace the source and ultimate beneficiaries of the laundered funds. The case highlights the growing sophistication of cybercriminal networks operating across India and the need for enhanced coordination between financial institutions and law enforcement agencies.