2 Arrested in Mule Account Fraud Scheme in Bhilai

Duo lured victims with loan promises, used bank accounts for cyber fraud and betting rings

Police in Bhilai arrested two men operating a mule account racket in the Cantt area, where they posed as loan facilitators to extract bank details and passbooks from unsuspecting residents. The seized accounts were being misused for cybercrime transactions and illegal online cricket betting networks.

Arrested Suspects Identified

The arrested accused have been identified as Akash Jaiswal, a resident of Sharda Para Camp-02, Bhilai, and Javed Akhtar, resident of Mother Teresa Nagar Camp-01, Bhilai. Police recovered bank documents and mobile phones from their possession during the operation.

How the Racket Operated

The scheme centred around the Backunth Dham Anganwadi Centre (No. 25) area under Cantt police station jurisdiction. Operating from this location, the accused approached local residents with the promise of securing quick loans. Once victims showed interest, they were asked to submit their bank account details, passbooks, and identity documents as a "mandatory requirement" for loan processing.

Police said the accused never intended to provide any loans. Instead, they systematically collected banking credentials from multiple victims.

Accounts Misused for Crime

Intelligence inputs revealed that the collected accounts were converted into "mule accounts"—a common tool in organized cybercrime networks. These accounts served a dual purpose: receiving funds from cybercrime victims through online fraud schemes and routing money for underground betting syndicates operating cricket wagering platforms.

"The accounts were being actively used to launder proceeds from cyber fraud and facilitate illegal sports betting transactions," a police officer said, requesting anonymity.

Pattern of Mule Account Abuse

Mule accounts have emerged as a critical vulnerability in India's financial system. Criminals exploit them to distance themselves from the actual crime source. Funds stolen through phishing, romance scams, or investment frauds pass through these dummy accounts before reaching the masterminds. Similarly, illegal betting networks use them to obscure transaction trails.

The Bhilai case reflects a wider trend where criminals recruit unsuspecting citizens or coerce vulnerable people to hand over banking access.

Investigation Underway

Police have registered a case and are examining digital records from the seized devices. Investigators are now tracking how many victims were affected and the total value of transactions processed through the seized accounts. Authorities are also attempting to identify the wider network that may have benefited from this operation.

Warning to Public

The arrests serve as a reminder for residents to be cautious about sharing banking credentials with anyone, regardless of the stated purpose. Banks and financial institutions do not require original passbooks or account details for loan processing; such requests are a red flag for fraud.

Residents who suspect they have been approached by similar fraudsters are advised to report the matter to their nearest police station or contact the cyber crime helpline.