A major cyber fraud network operating across multiple states has been exposed in Telangana, with police uncovering transactions worth ₹547 crore routed through so-called “mule” bank accounts.
The crackdown took place in Khammam district, where police arrested 18 people in connection with the case. A total of 24 accused have been named, while the remaining suspects are currently absconding, police said.
According to officials, the investigation revealed that the accused were part of a well-organised cyber fraud operation that functioned systematically between 2022 and 2025. Khammam Police Commissioner Sunil Dutt said the group created and controlled “mule” bank accounts to move large volumes of illicit funds.
“The accused induced multiple individuals, under the guise of employment, business opportunities and monetary incentives, to open and operate bank accounts in their names,” the commissioner said in a statement. He added that internet banking credentials of these accounts were later collected and misused, allowing the accused to retain full control over the transactions.
Police said these accounts were used for receiving, layering, transferring, and laundering proceeds generated from cyber fraud. The activities attracted offences under the Bharatiya Nyaya Sanhita and the Information Technology Act, 2000.
A detailed analysis of bank accounts linked to the accused and their associates showed cumulative transactions amounting to ₹547 crore. Investigators found that the “mule” accounts were supplied to cyber fraudsters in exchange for commissions.
Officials further said the funds were routed through multiple layers, transferred abroad, converted into cryptocurrencies, and withdrawn using various methods to evade detection. The transactions have been linked to several cyber fraud cases registered in different states across the country.
Police confirmed that further investigation is underway to trace additional links, identify missing suspects, and map the wider network involved in the fraud. Authorities are also examining cross-border fund flows and digital asset conversions connected to the case.
The arrests mark a significant step in tackling organised cyber crime and the misuse of banking channels for large-scale financial fraud, officials said.
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