Srinagar, April 6: In a major breakthrough against cyber-enabled financial crimes, Cyber Police Kashmir Zone has unearthed a vast network of mule bank accounts operating from the Kashmir Valley, with a staggering 7,200 such accounts identified as being involved in laundering illicit funds. These accounts, critical conduits for large-scale cyber fraud, were uncovered during a comprehensive investigation that has sent shockwaves across law enforcement and banking sectors alike.
Addressing a press conference in Srinagar, Senior Superintendent of Police (SSP) Imtiyaz Hussain said that the Cyber Police has so far registered four First Information Reports (FIRs) related to the case, with more expected as investigations deepen. Preventive security actions have already been initiated against 21 individuals—19 of them hailing from Srinagar—who are believed to be directly or indirectly linked to the mule account operations.
Explaining the modus operandi, officials revealed that mule accounts are used to receive and move funds earned through illegal online activities on behalf of cybercriminals, often in exchange for a commission. These accounts are commonly operated under the names of individuals, fake companies, or shell entities. Cyber Police said these accounts are typically recruited via social media platforms such as Telegram, Facebook, and others, and are remotely controlled by fraudsters based outside Jammu and Kashmir, and even overseas.
Once activated, the mule accounts are swiftly integrated into illicit payment ecosystems, including fake investment websites, illegal betting and gambling portals, and fraudulent stock trading platforms. The proceeds received in these accounts are rapidly “layered”—a money laundering technique used to obscure transaction trails—by being transferred through multiple accounts or converted into cryptocurrency, making them nearly untraceable.
In collaboration with the Indian Cyber Crime Coordination Centre (I4C) under the Ministry of Home Affairs (MHA), New Delhi, Cyber Police Kashmir received a detailed list of 7,200 mule bank accounts created since January 2025 from within the Kashmir Valley. Authorities believe this number may rise significantly as investigations uncover deeper links.
Alarmingly, officials found that bulk payout services offered by banks were being exploited to disburse fraudulently acquired funds in record time. These mule accounts usually remain active for a short period—sometimes under a week—before being red-flagged for suspicious activity. Despite their brief operational windows, crores of rupees are transacted and moved through layers of accounts.
Investigators have also identified several local operatives or ‘kingpins’ managing this network, acting as recruiters and handlers. These individuals reportedly target youth and people from economically vulnerable backgrounds, offering them commissions in return for access to their bank accounts and identity documents.
According to the police, areas identified as hotbeds for such activities include Mehjoor Nagar, Natipora, Nowgam, Lasjan, Padshahibagh, Nowhatta, Khanyar, Rainawari, Soura, Batmaloo, Noorbagh, Qamarwari, Parimpora, Mujgund, and Bemina. Additionally, similar operations have surfaced in districts like Ganderbal, Kangan, Sumbal, Bandipora, Baramulla, Pulwama, Anantnag, Kulgam, and Shopian.
The police have strongly cautioned citizens against selling or renting out their bank accounts, company registrations, or Udyam Aadhaar documents to anyone, warning that such acts can attract criminal liability under laws governing organized crime and cyber fraud.
While banks have been asked to reinforce systems to detect suspicious financial behavior, the public has been encouraged to stay vigilant and immediately report any suspected cybercrime activity by calling the national helpline 1930 or visiting www.cybercrime.gov.in.
The case marks one of the largest crackdowns on mule account operations in Jammu and Kashmir and highlights the growing sophistication of cybercrime syndicates exploiting digital loopholes and economic vulnerabilities for unlawful gains.