In Jammu and Kashmir, a significant crackdown has been initiated by the police on the surge of mule accounts being used for the illicit transfer of funds. According to officials, a staggering 7,200 mule accounts have been uncovered in 2025 alone, with an estimated total reaching up to 30,000. The volume of transactions through these accounts is believed to be in crores, although the exact amount has not been disclosed yet.
The Srinagar Senior Superintendent of Police, Imtiyaz Hussain, revealed that 21 individuals have been arrested in connection with this scam, with the majority of them being from Srinagar. Mule accounts serve as intermediary bank accounts through which illegally obtained money is moved. Cybercriminals typically recruit individuals via social media platforms like Facebook and Telegram to open these accounts, which are active for a brief period of time before being closed. During this window, illicit funds are deposited and then swiftly withdrawn before any detection occurs.
“This surge in mule accounts has become a primary method for laundering money acquired through cyber fraud,” stated SSP Hussain, highlighting the obscurity these accounts provide in financial transactions. While many of the accounts belong to individuals, shell companies, or businesses in Jammu and Kashmir, they are controlled remotely by fraudsters operating elsewhere, even internationally. Once the accounts are active, the funds are rapidly dispersed to other accounts or converted into cryptocurrency to further complicate tracking efforts.
The investigation has led to the filing of four FIRs to delve into the utilization of mule accounts, with a concentration of cases originating from Srinagar and Jammu, as per Hussain. Those involved in opening such accounts will be thoroughly questioned to determine who directed them to do so, with the SSP ruling out any possibility of individuals being unaware of their names being used. The process of opening these accounts requires the submission of official documents and signatures of the account holders.
Additionally, the probe into mule accounts has revealed instances where Indians were lured abroad under false pretenses of job offers. In March, eleven Kashmiris, including a woman, were among over 600 Indians rescued from scam call centers in Myanmar. These individuals were enticed by fake job offers, leading them to Myanmar, only to realize they were being exploited by cybercriminals operating these fraudulent enterprises.
The cybercrime syndicates target foreign workers, particularly those with IT skills, through deceptive job offers and promises of lucrative salaries. Upon arrival in Myanmar, these individuals are stripped of their passports and confined in guarded compounds, where they are coerced into executing online scams. Many of them endure physical abuse and psychological coercion during their captivity.
As the investigation unfolds and more mule accounts are unearthed, the authorities remain vigilant in dismantling these networks and holding those involved accountable for their fraudulent activities. The crackdown on mule accounts in Jammu and Kashmir underscores the ongoing battle against financial fraud and cybercrime, emphasizing the importance of collaboration between law enforcement agencies and international organizations to combat such illicit activities effectively.