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NASIR ALI
Srinagar: In the shadow of Kashmir’s serene valleys and bustling bazaars, a silent financial storm is brewing—one that is putting law enforcement agencies on high alert and exposing the underbelly of a growing cybercrime wave. At the center of this complex network are “mule bank accounts”—a term now becoming increasingly familiar to investigators chasing digital trails of fraud, deception, and laundering.
Over the past year, Kashmir has witnessed a disturbing rise in the use of mule bank accounts—bank accounts opened or handed over by individuals, often unwittingly, to cybercriminals who use them to route and disguise the proceeds of various financial scams. These accounts have become indispensable tools in a larger ecosystem of cyber fraud, allowing criminals to move stolen money with speed and stealth.
What makes these accounts particularly hard to detect is their ownership. The majority of these accounts are registered under the names of locals—auto-rickshaw drivers, daily wage laborers, unemployed youth, small shopkeepers, and sometimes even college students—people who are typically far removed from the world of digital crime.
In some instances, locals are asked to open new accounts in their names with the promise of a monthly payment. Once the account is active, the credentials—ATM cards, mobile numbers linked to the account, and even net banking access—are handed over to handlers, who may be operating from outside the region or even abroad.
Meanwhile, Cyber Police Station Kashmir Zone, Srinagar, has unearthed a sprawling and sophisticated network involved in the creation and management of mule bank accounts, which have become critical tools in the execution of large-scale cyber fraud and financial crimes.
Police spokesperson in a statement issued to ‘THE ASIA SPEAKS ’ reads, a mule bank account is an account used to receive and transfer illicit funds on behalf of others, often in return for a commission. These accounts—belonging to individuals, shell companies, and enterprises—are primarily scouted through social media platforms such as Telegram and Facebook, and are then remotely controlled by fraudsters operating from outside Jammu & Kashmir and even from overseas.
Bulk payout facilities provided by banks are also being misused in this process to distribute proceeds quickly. These accounts typically remain active for a short span—often less than a week—before being flagged due to suspicious transactions. However, within this brief window, transactions worth crores of rupees are executed and funneled across a chain of accounts, official added.
Cyber Police Kashmir has also discovered that several local kingpins are managing the operations of these accounts, acting as recruiters and handlers. These individuals onboard people—often from economically weaker sections—by offering commissions for account access.
In response to a request by Cyber Police Kashmir, the Indian Cyber Crime Coordination Centre (i4C), MHA, New Delhi has shared a list of 7,200 mule bank accounts operating from the Kashmir Valley alone—created since January 2025. This figure is expected to be much higher as the investigation progresses.
To date, Cyber Police Kashmir has registered 04 FIRs, and more are underway. Preventive security action has been initiated against 21 individuals, 19 of whom belong to Srinagar district.
The hotspots for mule account activity include areas like Mehjoor Nagar, Natipora, Nowgam, Lasjan, Padshahibagh, Nowhatta, Khanyar, Rainawari, Soura, Batmaloo, Noorbagh, Qamarwari, Parimpora, Mujgund, Bemina, among others. Similar activities have been reported in other districts including Ganderbal, Kangan, Sumbal, Bandipora, Baramulla, Pulwama, Anantnag, Kulgam, and Shopian.
Banks are being encouraged to strengthen checks to detect misuse of accounts for illegal payment gateways.
Well, the message from authorities is now loud and clear: If you let your account be used for fraud, you are not a victim—you are a suspect.
The rise of mule bank accounts in Kashmir is not just a story of fraud; it is a warning about how quickly trust can be weaponized in the digital age. For now, the challenge remains to stay one step ahead of a crime that hides in plain sight.
