Puducherry police have exposed a large and organised cybercrime network that operated from within an engineering college, involving fraud valued at nearly ₹90 crore. The investigation has revealed that several students were involved in selling bank accounts belonging to friends and classmates to cybercriminals. These accounts were later used for money laundering and conversion into cryptocurrency.
Authorities described the campus as a “cybercrime hotspot” where students, tempted by easy earnings, handed over their banking credentials to fraudsters.
How the case surfaced
The case came to light when two engineering students, Dinesh and Jaypratap, approached the police after their bank accounts were suddenly frozen. Police found that both had given access to their accounts to their friend Harish, who has since been arrested. Further investigation showed that Harish had collected information on more than 20 bank accounts from students and ordinary citizens.
These accounts were used as mule accounts to move funds linked to large scale cyber fraud. Officials confirmed that at least ₹7 crore had already been withdrawn through these accounts.
Seven arrested and more students under probe
Puducherry Cyber Crime Police have arrested seven people so far. They include four current students and three graduates.
Raids across several locations led to the recovery of ₹5 lakh in cash, 171 cheque books, 75 ATM cards, 20 mobile phones, multiple laptops and computers, several bank passbooks and credit cards, and one Hyundai Verna car.
Police said these seizures show the scale and sophistication of the operation.
China link and crypto trail
Investigators discovered that the network extended beyond India, reaching China and Dubai. Main accused Ganesan coordinated with cybercriminals based in China through the Telegram app.
His role involved depositing money through mule accounts in India, converting illicit funds into cryptocurrency, and transferring the amounts to crypto wallets for a commission. Officials said the system worked as a structured crypto based laundering model where students were treated as financial instruments.
How the campus turned into a hotspot
A senior officer said students were drawn in with offers of part time holiday work, data entry tasks, and trading jobs. In return, they were asked to hand over bank accounts, UPI IDs, KYC documents, passbooks, and ATM cards. Students were paid between ₹10,000 and ₹20,000 per account, which encouraged many to join in without realising the risks.
Police advisory
Puducherry Police issued a clear warning: “Do not allow anyone else to operate your bank account or digital wallet under any circumstances. Report any suspicious activity immediately to the Cyber Crime Helpline at 1930.”
Authorities noted that the network targets young people and that even small lapses can make them part of major financial crimes.
Probe continues across states
Police believe the network is active in Puducherry, Tamil Nadu, Karnataka, and Telangana. Investigators have sought support from college authorities to understand how the campus became a base for these activities. More arrests are expected as the probe expands to uncover the international network.
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