J&K police uncover 7,200 mule accounts tied to cybercrime, money laundering

SRINAGAR: A surge in mule accounts used to transfer illicit money has sparked a major crackdown in J&K, with police uncovering thousands of these fraudulent bank accounts, officials said.

In 2025 alone, 7,200 mule accounts have been identified and police estimate the total number could reach 30,000, according to Srinagar SSP Imtiyaz Hussain. While the transaction volume is estimated to be in crores, the amount has not been disclosed yet.

Police have arrested 21 people, including 19 from Srinagar, in connection with the scam, Hussain said Sunday.

A mule account is a third-party bank account used to move money obtained through illegal means. Cybercriminals recruit people — often through social media platforms like Facebook and Telegram — to open these accounts, which remain active for just a day or two. During this time, illicit funds are deposited before the accounts are quickly closed, Hussain said.

“These mule accounts have become a primary channel for laundering money obtained through cyber fraud,” the SSP said. “They are opened on a commission basis and used to obscure financial trails.”

Many of the accounts belong to people, shell companies, or enterprises but are controlled remotely by fraudsters operating outside J&K or even overseas, according to police. Once the accounts are active, funds are rapidly transferred to other accounts or converted into cryptocurrency to complicate tracking.

Four FIRs have been filed to investigate the use of mule accounts and most cases are emerging from Srinagar and Jammu, Hussain said.

“We are going to question everyone who opened such accounts. They will be asked who directed them to open these accounts,” he said, ruling out the possibility that people were unaware their names were being used. “These accounts require signatures and official documents of the account holders.”

The investigation into mule accounts has uncovered cases where Indians were lured abroad under false job offers.

Eleven Kashmiris, including a woman, were among more than 600 Indians rescued from scam call centres in Myanmar’s Myawaddy region in March. They were airlifted from Mae Sot airport in northwest Thailand, bordering Myanmar.

“These young people applied for jobs through advertisements on Facebook and Telegram. They submitted resumes, went through interviews, and were sent tickets to fly to the Myanmar,” Hussain said. “However, some of these companies were run by cybercriminals who trapped and exploited them to run scams.”

The cybercrime syndicates lure foreign workers, particularly targeting those with IT skills, with fake job offers and lucrative salaries. Once they arrive in Myanmar, their passports are confiscated and they are held captive in heavily guarded compounds, where they’re coerced into executing online scams. Many face physical abuse and psychological intimidation.