The Central Bureau of Investigation (CBI) has made a shocking discovery in its fight against cybercrime. Over 8.5 lakh mule accounts, spread across 700 bank branches nationwide, have been identified as tools for laundering illicit money. These accounts were allegedly used by cyber criminals to siphon funds from digital thefts, impersonation scams, fraudulent investments, and UPI-based frauds.
A recent coordinated search operation by the CBI targeted 42 locations across five states including Rajasthan, Delhi, Haryana, Uttarakhand, and Uttar Pradesh. The operation led to the arrest of nine suspects who played various roles in this elaborate scheme. Among those detained were middlemen, agents, aggregators, account holders, and even bank correspondents.
So what exactly is a mule account? It’s a bank account opened under a person’s name, sometimes without their knowledge, purely to move illegal money. The account acts as a temporary stop before funds are quickly transferred elsewhere. Once the money is moved, the account is often closed, making it nearly impossible to trace the criminals behind the transactions.
The CBI found that these accounts were opened using fake identification documents. But the real concern is the potential involvement of bank officials and e-Mitra agents who may have knowingly facilitated the process. Some bankers allegedly ignored suspicious transaction alerts or failed to follow standard KYC protocols.
According to an official, most mule accounts are used just once. Funds are deposited, rapidly distributed to other accounts, and the original account is abandoned. This fleeting usage makes tracking the criminals a serious challenge for law enforcement.
The investigation began after the CBI filed a new FIR based on alarming findings during an earlier enquiry. The agency was specifically looking into gaps in banking safeguards and potential collusion between fraudsters and financial personnel.
What they uncovered was a systemic failure. Over 700 bank branches had opened these dubious accounts without proper verification. In many cases, there was no customer due diligence, no initial risk assessment, and sometimes not even a confirmation letter sent to verify addresses. The CBI also noted violations of RBI guidelines and internal banking protocols.
As part of the crackdown, the agency seized incriminating documents, digital evidence, mobile phones, and transaction records. Individuals involved in the creation of these mule accounts have been identified, and an FIR has been lodged under charges of criminal conspiracy, cheating, forgery, and corruption.
The scale of this operation highlights how cybercriminals exploit weak links in the banking system. Despite strict regulations, fraudsters continue to find loopholes, often with insider help. The CBI’s findings serve as a warning for banks to strengthen their verification processes and for customers to remain vigilant against scams.
