Srinagar, Apr 6: The Cyber Police Kashmir Zone today uncovered a sophisticated network behind the creation and operation of mule bank accounts, key enablers in large-scale cyber fraud and financial crimes, with 7200 such accounts operating from Kashmir.
Addressing a press conference here, SSP Srinagar Imtiyaz Hussain said that to date, Cyber Police Kashmir has registered 4 FIRs with more underway and preventive security action has been initiated against 21 individuals, 19 of whom belong to Srinagar district.
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Speaking about the mule bank accounts, the officials said that it 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, police said, are primarily scouted through social media platforms such as Telegram and Facebook, and are then remotely controlled by fraudsters operating from outside J&K and even from overseas.
Once these accounts are set up, police said, they are integrated into illegal payment gateways and used by criminal syndicates to collect deposits from victims on fake investment websites, offshore betting and gambling platforms, and fraudulent stock trading portals.
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“Funds received in these mule accounts are immediately layered and diverted to other accounts or converted into cryptocurrency to obscure the money trail,” police said.
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, police said.
Further, it was informed that bulk payout facilities provided by banks are also being misused in this process to distribute proceeds quickly.
These accounts, as per police, 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, police said.
Cyber Police Kashmir said that it 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, police said.
As per police, the hotspots for mule account activity include areas like Mehjoor Nagar, Natipora, Nowgam, Lasjan, Padshahibagh, Nowhatta, Khanyar, Rainawari, Soura, Batmaloo, Noorbagh, Qamarwari, Parimpora, Mujgund and Bemina, among others.
Similar activities, police said, have been reported in other districts including Ganderbal, Kangan, Sumbal, Bandipora, Baramulla, Pulwama, Anantnag, Kulgam and Shopian.
Police have advised citizens not to sell or rent their bank accounts, company registration certificates, or Udhyam Aadhaar registration documents to any individual or entity.
“Any such involvement in laundering illicit funds could result in serious legal consequences, including arrest under provisions related to organized crime and cyber fraud,” police said.
While the banks have been encouraged to strengthen checks to detect misuse of accounts for illegal payment gateways, police have urged the citizens to report any suspicious cyber activity immediately via helpline 1930 or online at www.cybercrime.gov.in.
