The Criminal Investigation Department (CID) Cybercrime Command Cell in Karnataka has uncovered a massive network of cyber fraud that funds proceeds from online scams, illegal betting, and other cybercrimes using more than 42,000 “mule” bank accounts. Transactions are estimated at around ₹100 crore in the last year. The operation was coordinated, conducted as an entire statewide network and comprised raids at more than 100 locations in 29 districts, carried out between February 5 and 6, 2026, police officials said.
As part of their crackdown, 13 people — dubbed by officials “mule herders” — were arrested for procuring and managing these accounts on behalf of cybercriminal networks.
The police have discovered that the culprits targeted ordinary citizens, from students and daily-wage earners to unemployed youth, giving them small payments between ₹10,000 and ₹20,000 in return for obtaining access to their bank account information, ATM cards and cheque books. Those accounts were then leased or sold to cybercriminals who used them to collect funds they had stolen through online job frauds, phishing scams, fake investment platforms, digital arrest frauds and illegal betting sites.
Money entered the mule accounts was quickly filtered through several accounts to shield its origin and money was withdrawn via ATMs or used in other fraudulent transactions. The layers hampered law enforcement’s efforts to follow the money’s trail directly to the main perpetrators, officials said.
When police carried out the raids, they confiscated such physical evidence as ATM cards, cheque books, cellphones and other digital devices tied to the operations. There have been 17 First Information Reports (FIRs) registered so far with more arrests and charges anticipated as investigations proceed.
The police are warning that a large number of account holders didn’t realize their details were being misused, putting them at very serious legal risk. Authorities are calling all citizens to be cautious of sharing personal banking information and report any activities which could be considered to be fraud without delay.
This is in the context of growing threats of cyber fraud in Karnataka, and primarily in major urban areas like Bengaluru. Police are stepping up enforcement to address organised fraud networks and highlighted the importance of monitoring and awareness that will help keep the tide of abuse at bay from becoming ever more rampant.
Following up with the investigation, CID intends to map the entire trail of funds and network links to these large mule account schemes.
