In a major action against organised cybercrime, city cybercrime police have uncovered a large fraud network involving bank insiders and mule accounts operating across multiple states in India.
A total of 52 people, including 32 bank officials, were arrested for allegedly supporting a pan-India cyber fraud racket. The network used mule accounts to transfer and siphon off money from victims across Telangana, Andhra Pradesh, Karnataka, Maharashtra, West Bengal, Bihar, Delhi, Rajasthan, and Gujarat.
Cases have been registered against the accused for their role in opening and managing fraudulent bank accounts linked to cybercrimes. The arrests were made under “Operation Octopus 2.0”, a coordinated effort aimed at cracking down on insider involvement in financial fraud networks.
Police Commissioner V.C. Sajjanar said the operation was launched to dismantle organised cybercrime groups involving bank staff. “There has been a significant rise in investment scams, trading frauds, and “digital arrest” scams, wherein fraudsters exploit victims through manipulation, intimidation, and emotional coercion, leading to substantial financial losses,” he said.
The operation was conducted over 7 days across 9 states by 16 special teams. Those arrested include relationship managers, KYC approvers, probationary officers, clerks, and field officers from multiple banks, who allegedly worked with fraudsters to create mule accounts.
Investigators revealed that 15 account holders knowingly allowed their accounts to be used for illegal transactions, while 5 middlemen helped arrange these accounts and route funds to the masterminds.
The cybercrime police in Hyderabad identified a network of 350 bank accounts linked to 850 cases across India, involving transactions worth nearly Rs 150 crore.
The frauds mainly involved investment scams, trading frauds, and “digital arrest” schemes, where victims were pressured into transferring money. During the raids, police seized 26 mobile phones, 14 cheque books, storage devices, laptops, and other materials used in the crimes.
Cybercrimes DCP V. Aravind Babu said ACP R.G. Siva Maruthi and the team carried out the operation with precision and professionalism.
Officials highlighted that the arrests indicate insider involvement in banks, especially lapses in KYC checks that enabled misuse of accounts. Police confirmed that further investigation is ongoing to identify higher-level operatives, and legal action will continue against those involved.
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