Three Arrested for Operating Mule Accounts in ₹52-Lakh Cyber Fraud
The Visakhapatnam cybercrime police have arrested three persons for allegedly operating mule bank accounts for an international cyber fraud syndicate based in Dubai. The arrests were made after a school librarian from Visakhapatnam filed a complaint stating that she had lost ₹51.25 lakh in a fake trading scam. Another person also lost ₹91,500 through the same modus operandi, taking the total amount involved to over ₹52 lakh.
The accused, identified as Syed Ali Abbas Hussain Jaffri, Shaik Yousuf, and Zakir Hussain, all residents of Hyderabad, are alleged to have coordinated financial transactions through these accounts on the instructions of overseas masterminds named Shaibaz and Suleman. Police said the trio procured bank accounts from family members, friends, and acquaintances in exchange for high commissions. The illegally obtained funds were then moved through cash withdrawals, UPI transfers, demand drafts, and hawala channels.
Mule accounts are bank accounts used to receive and transfer money obtained through fraudulent means. They are often opened by individuals who may not fully understand their role in the illegal scheme, but in this case, the accused are believed to have knowingly operated the accounts for a cut of the proceeds.
The investigation began after the librarian complained that she was contacted on WhatsApp by individuals posing as American stock market experts. They directed her to download a fraudulent trading application named 'SALTORO IN' and lured her into investing large sums in shares and Initial Public Offerings (IPOs), promising high returns. The police noted that this is a common tactic used by cyber fraudsters to exploit people's interest in stock market investments.
Using technical analysis, bank transaction tracking, and field investigations, the police discovered that the money moved from layer-1 accounts to layer-2 accounts, a common method to obscure the trail. Digital footprints, mobile tower locations, and KYC details led the investigators to Telangana, where the suspects were identified and served notices.
The police arrested the three accused and produced them before a judicial magistrate, who remanded them to 14 days of judicial custody. Mobile phones seized from the accused contained incriminating WhatsApp chats and bank details, and the digital evidence has been sent for forensic examination.
The Visakhapatnam City Police has urged citizens to exercise caution when dealing with unsolicited investment offers on social media, unauthorized trading applications, and suspicious links. They advised people to verify the authenticity of any platform before investing money. Victims of cyber fraud can immediately dial the toll-free helpline 1930 or file a complaint through the official website www.cybercrime.gov.in.
The arrest highlights the growing threat of cyber fraud and the need for public awareness in recognizing and avoiding such scams. The police have also emphasized the importance of reporting fraudulent activity promptly to allow authorities to act quickly in tracing and recovering funds.
