Mule accounts: the money trail of cyber fraudsters
Indian authorities are investigating the rise of 'mule accounts' used by cyber fraudsters to launder money from online scams. These networks involve complex chains of bank accounts that obscure the final destination of stolen funds.
Why it matters
The proliferation of mule accounts poses a significant challenge to financial security and law enforcement efforts to combat digital fraud.
Behind an online investment fraud, impersonation scam or “digital arrest” is a more basic logistical problem: how does the victim’s money reach the fraudster?
Unlike a direct transaction, scamsters run numerous “mule accounts” network, where the money passes through several accounts — sometimes spread across different banks and States — before being withdrawn or transferred further. Recent investigations by Mumbai Police illustrate the scale of such networks.
In one case, Dongri Police said they identified 110 bank accounts in an alleged interstate network supplying accounts for cyber fraud. In another, Khar Police traced 22 accounts that were linked to 42 cybercrime complaints involving around ₹7.42 crore.
Nationally, the Indian Cyber Crime Coordination Centre (I4C) had shared details of 32.08 lakh Layer-1 mule accounts with entities participating in its Suspect Registry as of June 30, 2026, according to the Union Ministry of Home Affairs (MHA).
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