Maharashtra, UP among 10 high risk states leading in mule account cases as cybercrime networks expand nationwide

By Rajnish Singh
New Delhi [India], March 3 Maharashtra, Uttar Pradesh and Rajasthan are among the leading 10 states across India where cybercriminals are frequently opening so-called "mule accounts" to siphon off and launder illicit funds, officials in the Union Ministry of Home Affairs said.
Other regions identified as major hotspots include Haryana, Delhi, Dadra and Nagar Haveli and Daman and Diu, Karnataka, Madhya Pradesh, Bihar and Tamil Nadu.
The Indian Cyber Crime Coordination Centre (I4C), a specialised wing under the MHA, has identified these regions as hotspots where mule accounts are being misused to channel proceeds of cyber fraud.
Investigations have revealed that cyber fraud networks are exploiting unsuspecting individuals as well as willing accomplices to move stolen money across banking channels, making detection and tracing more difficult.
A mule account refers to a bank account that is knowingly or unknowingly controlled by an individual--commonly referred to as a "money mule"--to receive, transfer or launder illicit funds on behalf of criminals. These accounts are used to mask the origin of stolen money and create multiple transaction layers, thereby complicating financial tracking by enforcement agencies.
Typically, cybercriminals deposit fraudulently obtained money into a mule account. The account holder is then instructed to transfer the funds to other accounts, withdraw cash through ATMs, or route the amount through cheques, often in exchange for a small commission. In many cases, victims are lured through fake job offers, "work from home" schemes, social media advertisements, or romance scams promising easy income for minimal effort. While some individuals are unaware they are facilitating illegal transactions, others knowingly participate for financial gain, risking severe legal consequences.
Data compiled by the I4C highlights the scale of the problem in specific districts. In Jharkhand's Jamtara--long regarded as a cyber fraud hub--more than 350 mule accounts were detected in 2025 alone. Officials said approximately Rs 7 crore was withdrawn from these accounts using ATMs and cheques, while an additional Rs 3.8 crore was routed through them. Nearly 5,000 ATM IDs and more than 20 cheque branches were reportedly involved in transactions linked to cyber fraud cases traced to the district.
Similarly, in Haryana's Nuh district, authorities detected over 1,000 mule accounts in 2025. These accounts recorded withdrawals amounting to Rs 18 crore. Around Rs 0.8 crore was routed through these accounts in the first layer of transactions, with more than 1,400 ATM IDs and 75 cheque branches involved.
Officials noted that the layering of transactions--often spread across multiple accounts and regions--is a deliberate tactic to obscure the money trail.
Investigators have also expressed concern that several cybercrime hotspots are increasingly shifting their operational bases overseas to countries such as Cambodia, Vietnam and Myanmar, while continuing to use mule accounts within India to channel funds.
This transnational dimension has added complexity to enforcement efforts, necessitating greater coordination with international agencies.
According to officials, the Central Bureau of Investigation (CBI) has identified nearly 8.5 lakh mule accounts in 2025 that were opened across 700 bank branches nationwide.
The volume of suspicious accounts has prompted banks and law enforcement agencies to tighten due diligence norms and strengthen monitoring systems.
In a bid to raise awareness among customers, banks over the past year have begun distributing a specially designed comic book featuring the popular characters Chacha Chaudhary and Sabu to new account holders. The comic simplifies complex financial fraud concepts and explains how mule accounts are misused by cybercriminals, warning readers about the legal and financial risks associated with allowing their bank accounts to be used by others.
Officials further revealed that some Business Correspondents (BCs) of banks have allegedly been compromised by criminal networks to facilitate the opening of mule accounts, particularly in remote and financially vulnerable regions. In such areas, residents may lack awareness about banking procedures and the potential misuse of their accounts, making them easy targets for exploitation.
The MHA has urged states to intensify vigilance, enhance digital literacy campaigns, and strengthen coordination between banks and law enforcement agencies to curb the proliferation of mule accounts.
Authorities have also advised citizens not to share banking credentials or agree to transfer funds on behalf of unknown persons, warning that ignorance of the law will not shield account holders from prosecution if their accounts are used for illegal activities.
With cyber fraud cases rising sharply across the country, officials said dismantling mule account networks remains a critical component of India's broader strategy to combat digital financial crimes.