The Bilaspur Range Cyber Police have busted an alleged mule bank account network suspected of helping cyber fraudsters route and withdraw money obtained through online scams. Six people have been arrested after investigators traced suspicious transactions and cybercrime complaints across multiple states.

According to the police investigation, bank accounts linked to the accused were allegedly provided to cybercriminals in exchange for commissions. Investigators found connections to around 50 cyber-fraud complaints registered in different states, involving suspected financial fraud of nearly ₹4 crore.

The case highlights how so-called mule accounts — legitimate bank accounts allegedly controlled or used by third parties to receive and move illicit funds — are increasingly being used to complicate the money trail in cybercrime cases.

₹2.20 Crore Transaction in 25 Days

The investigation began after suspicious activity was detected in an account associated with Ajay Farm House at the Chhattisgarh Gramin Bank's Mangla branch.

A police-linked report said that between May 18 and June 12, 2026, more than ₹2.20 crore was recorded as suspicious transactions in the account over just 25 days.

The bank's internal scrutiny reportedly indicated that the account was being used to receive and transfer funds suspected to be linked to cyber fraud.

The bank subsequently shared relevant records with the Range Cyber Police, helping investigators begin tracing the wider network.

Accounts Allegedly Provided for Commission

Police allege that members of the network approached people and persuaded them to provide or open bank accounts in return for financial incentives.

The accused allegedly offered account holders commissions of around ₹20,000 to ₹25,000, along with a percentage of transactions. The source report puts the alleged share at around 2.8% per transaction.

After the accounts were made available, investigators allege that access to mobile banking, internet banking and related banking facilities was handed over to the operators.

Fraud proceeds could then be transferred into the accounts before being withdrawn or moved onward, making it harder for investigators to immediately identify the original beneficiaries of the fraud.

Six People Arrested

The Range Cyber Police arrested six people as part of the investigation.

Police questioning allegedly led investigators from account holder Ajay Kumar Soni to other suspected members of the network, including Narendra Kurre and Raipur-based Devesh Kumar Das alias Robin.

Police are investigating the specific roles played by each accused and their links with other people who may have supplied or operated bank accounts.

A police-linked report said the arrested suspects were allegedly involved in arranging accounts in the names of ordinary people and making them available for cybercrime-related transactions.

Cybercrime Complaints Across States

The investigation has widened beyond Bilaspur after police found that the bank accounts were allegedly connected with complaints from different parts of the country.

Around 50 cybercrime complaints across multiple states have been linked to the accounts under investigation, with the suspected fraudulent transactions estimated at nearly ₹4 crore.

Police are now examining transaction records and other digital evidence to establish how the money moved between accounts and identify the wider cybercrime network.

What Is a Mule Bank Account?

A mule account is generally a legitimate bank account that is allegedly used by another person or group to receive, transfer or withdraw illegally obtained money.

Such accounts can make cybercrime investigations more difficult because the account receiving the money may not belong to the person who carried out the original fraud.

The Indian Cybercrime Coordination Centre (I4C) has also issued advisories on different forms of account and digital-account misuse and advises citizens to avoid sharing sensitive banking information or credentials with unknown people.

The National Cybercrime Reporting Portal allows citizens to report financial fraud and other cyber offences.

Police Checking Wider Network

The six arrested suspects have been produced before a court and sent to judicial custody, according to the report.

Investigators are now examining the role of additional people who may have helped recruit account holders, operate the accounts or transfer the money.

Police are also expected to examine transaction trails, digital devices, account credentials and other financial records to determine the full scale of the alleged network.

The Bilaspur case underlines a growing challenge for cybercrime investigators: online fraud does not always end with the account from which money is stolen. Tracing the accounts used to receive and move the money can be equally important in dismantling the wider network.

A major cyber fraud case involving a so-called digital arrest scam has surfaced, linking Tamil Nadu to Madhya Pradesh, where police have arrested three individuals for facilitating the illegal transfer of funds through a mule bank account. The case highlights the growing scale of organized cybercrime networks operating across multiple states in India.

Victim targeted through digital arrest scam

The incident originated in Coimbatore, Tamil Nadu, where a resident identified as KC Sridhar fell victim to an elaborate online fraud. The scammers allegedly posed as officials and manipulated the victim into believing he was under digital arrest, a tactic increasingly used to create fear and urgency. Under this pressure, the victim was coerced into transferring a total amount of Rs 67,75,301.

Fraud money traced to Ratlam bank account

During the investigation, authorities tracked a portion of the defrauded amount to a bank account in Ratlam, Madhya Pradesh. According to police findings, Rs 47,75,301 was deposited into an account held with a private bank. This discovery confirmed the involvement of an interstate cybercrime network using layered financial channels to conceal transactions.

Police identify mule account operations

Further inquiry revealed that the Ratlam-based account was being used as a mule account. Such accounts are typically opened or operated by individuals who allow criminals to route illegal funds through their banking systems in exchange for commissions. This practice helps fraudsters obscure the origin and movement of money.

Three accused arrested in Ratlam

Ratlam police acted swiftly after receiving inputs through national cybercrime coordination platforms. The account holder, a 23-year-old man named Pratham Mittal, was taken into custody. During interrogation, he admitted that he had opened and provided access to his account at the behest of two associates.

Based on his statement, police arrested Hemant Rayak, also known as Monu, and Shubham Reda, both residents of Ratlam. Investigators confirmed that all three were aware of the illegal nature of the transactions and were motivated by financial incentives.

Case registered under legal provisions

Authorities have registered a case under relevant sections of the Bharatiya Nyaya Sanhita, 2023, specifically dealing with financial fraud and cheating. The police are continuing their probe to identify other members of the network and establish links with similar cybercrime operations across states.

How mule accounts enable cybercrime

Mule accounts play a crucial role in cyber fraud schemes by acting as temporary holding points for stolen money. Criminals often recruit individuals through offers of easy money, convincing them to share banking credentials or open accounts. These accounts are then used to transfer funds rapidly, making it difficult for law enforcement agencies to trace the money trail.

Police advisory and public warning

Officials have urged citizens to remain cautious of unsolicited calls, especially those involving threats of legal action or claims of digital arrest. People are advised not to share personal or banking details with unknown individuals and to avoid opening accounts on behalf of others for monetary benefits.

In case of suspected cyber fraud, victims are encouraged to immediately contact the national helpline 1930 or report the incident on the official cybercrime portal. Authorities have emphasized that timely reporting can significantly improve the chances of recovering stolen funds.