Mule Bank Accounts
Ghaziabad police have busted a major nationwide cyber‑fraud network that used over 700 “mule” bank accounts to siphon about ₹67 crore from victims, arresting three key members of the gang linked to the Telegram‑based “Crown Pay” network.
Ghaziabad SP Dr. Irshad Raja briefing the media on the arrest of three cyber‑fraudsters involved in a ₹67‑crore mule‑bank‑account scam spanning 25 states.
A major cyber fraud and money-laundering racket has been exposed by police in Ghaziabad, revealing how a group of fraudsters allegedly used hundreds of bank accounts to move stolen money across the country. Investigators say the network used more than 700 mule bank accounts and routed nearly ₹67 crore collected through different online scams.
According to officials, the gang tricked financially struggling people into opening bank accounts using their identity documents. These accounts were later used to transfer fraud money received from victims across India. Three key suspects have been arrested so far, and police are now trying to track down other members of the network.
How the fraud network operated
Police say the racket worked through a system where poor or unemployed individuals were offered small payments to share their documents such as Aadhaar card, PAN card and photographs. Using these details, the accused allegedly created fake MSME and GST registrations to open bank accounts in the victims’ names.
Once the accounts were opened, they were no longer controlled by the actual account holders. Instead, the gang used them as “mule accounts” to receive money from cyber fraud victims.
Investigators believe the accounts were then connected to a Telegram-based payment platform known as “Crown Pay.” Through this network, money collected from different online scams was transferred quickly from one account to another to avoid detection.
Officials say the fraud money came from various online schemes such as fake investment opportunities, gaming platforms, reward offers and trading scams.
₹67 crore fraud linked to multiple complaints
The case came to light after dozens of victims across the country reported suspicious transactions through the National Cyber Crime Reporting Portal. So far, more than 75 complaints have been linked to this particular network.
According to police estimates, the fraud amount connected to these complaints has reached around ₹67 crore. However, investigators believe the actual amount could be even higher because the same accounts may have been used in other scams that are still being traced.
Arrests and seizures during investigation
During the investigation, Ghaziabad police arrested three men believed to be closely associated with the “Crown Pay” network. Officials say the accused were responsible for creating and managing mule accounts and transferring money through different digital platforms.
Police raids led to the recovery of several items used in the operation. Among the seized materials were:
- 19 SIM cards
- 12 ATM cards
- Five bank passbooks
- One cheque book
- Multiple mobile phones
- Fake MSME and GST documents
- Company stamps and seals
Forensic examination of the seized phones reportedly revealed special applications and APK files used to monitor bank alerts and manage transactions remotely.
How the money was laundered
Investigators say the gang followed a typical money-laundering pattern used by cyber criminals.
First, money collected from scam victims was deposited into one of the mule accounts. Within minutes or hours, the amount was transferred to other accounts through UPI or mobile payment apps.
The money was then moved to international cryptocurrency exchanges such as Binance and KuCoin. Here it was converted into stablecoins like USDT, which made the transactions harder to trace.
Once converted into cryptocurrency, the funds could be transferred globally or sold for cash through crypto traders.
Police say profits from these transactions were divided among different members of the network, including account suppliers, technical operators and higher-level handlers.
Network spread across 25 states
During questioning, the arrested suspects reportedly admitted that the network controlled more than 700 bank accounts across at least 25 states in India.
Investigators say spreading accounts across multiple states helps cyber criminals hide their tracks. Transactions appear to come from different locations and banks, making it difficult for a single police department to identify the entire pattern quickly.
Cyber-crime experts say this is a common method used by organised online fraud groups operating across the country.
Authorities expand investigation
The digital evidence collected in the case has been shared with several agencies, including the Indian Cyber Crime Coordination Centre (I4C) under the Union Home Ministry.
Authorities are now analysing transaction records and identifying other accounts that may have been used by the network. Police also plan to freeze or examine many of the suspected mule accounts once the financial trails are confirmed.
Investigators are also trying to locate the higher-level operators who may be running or controlling the Crown Pay system.
Warning for the public
Cyber-crime officials have warned citizens not to share their bank details or identity documents with unknown individuals. In many cases, people who agree to open bank accounts for others end up becoming part of illegal financial networks without fully understanding the consequences.
Authorities advise people to never share OTPs, UPI PINs, net-banking credentials or SIM card access with strangers offering online jobs or commissions.
If someone notices suspicious transactions in their account, they should immediately report the matter to their bank or file a complaint through the National Cyber Crime Reporting Portal.
Growing concern over mule-account fraud
The Ghaziabad case once again highlights how cyber-fraud networks are expanding rapidly across India. With the help of mule accounts, criminals can move stolen money quickly and make it difficult for investigators to track the source.
Officials say public awareness remains the most effective way to prevent such crimes. Even a single bank account shared with fraudsters can become part of a large nationwide network.
Police say the investigation is still ongoing and more arrests are likely as authorities continue to track the digital trail of the ₹67-crore fraud.
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