Rajasthan Police Busts Massive Cybercrime Racket Linked to ₹500 Crore Mule Account Fraud

Rajasthan Police has exposed one of the biggest cyber fraud rackets in recent times, uncovering a staggering scam worth over ₹500 crore. The racket, operating from Alwar, relied on mule accounts to facilitate large-scale illegal money transfers across the country. Six individuals have been arrested in connection with the case, including four Axis Bank employees, who allegedly played a key role in opening fraudulent accounts for cybercriminals.

How the Racket Was Uncovered

According to officials, the gang specialized in creating mule accounts using forged documents. These accounts were later sold to cybercriminals who used them to route illicit money transfers. Investigators revealed that hundreds of current and corporate accounts were opened in this manner, enabling fraudulent transactions that have already crossed ₹500 crore.

During raids, police recovered a significant haul of incriminating materials. The seized items included:

• 26 ATM cards

• 33 mobile phones

• 34 SIM cards

• ₹2.5 lakh in cash

• Multiple chequebooks and passbooks

• Two vehicles

The accounts were being openly traded via WhatsApp and Telegram groups, making it easier for criminals to purchase ready-made bank accounts. These were then linked with new phone numbers and fake mobile apps to enable seamless internet banking transactions and large-scale fraud.

Bank Employees Under Scrutiny

What makes this case particularly alarming is the direct involvement of banking professionals. Police confirmed that four Axis Bank employees — identified as Sahil Agarwal, Gulshan Punjabi, Asu Sharma, and Anchal Jat — have been arrested. Their alleged role was to open current accounts using fake documents and hand them over to middlemen, who in turn sold them to cyber fraudsters.

This inside access provided criminals with a direct entry point into the banking system, making detection extremely difficult. The collusion has raised serious questions about internal banking checks, customer verification processes, and overall system security.

Scale of the Network and Financial Damage

Authorities revealed that the racket was not a small operation. Transactions amounting to more than ₹500 crore have already been routed through these mule accounts. The National Cybercrime Reporting Portal has received over 4,000 complaints linked to these accounts, and initial investigations suggest that frauds worth more than ₹100 crore can be directly attributed to this gang.

Officials believe the network may have connections across multiple states, hinting at a wider spread of cybercrime facilitated through fraudulent bank accounts.

What Are Mule Accounts and Why They Are Dangerous

In the world of cybercrime, mule accounts play a crucial role. These are essentially bank accounts opened using stolen or fake identities, which are then sold to criminals. The accounts serve as temporary pipelines for stolen or illegally acquired money. By moving funds through multiple mule accounts, cybercriminals make it almost impossible for law enforcement to trace the money trail back to the original source.

When such accounts are created with insider support from bank employees, the threat becomes even more severe. It not only undermines the integrity of the banking system but also places customers’ financial security at risk.

Impact on Banking Security

The exposure of this racket has once again highlighted growing vulnerabilities in India’s financial ecosystem. Despite digital banking advancements, cyber fraud continues to rise as criminals exploit loopholes in documentation, account verification, and employee oversight.

Experts believe that stricter KYC (Know Your Customer) norms, enhanced background checks for banking staff, and advanced monitoring systems for unusual transactions are urgently needed. Banks are also being urged to conduct internal audits more frequently to identify suspicious activities before they spiral out of control.

Conclusion

The Alwar cyber fraud case is a stark reminder of how organized cybercrime has evolved in India, leveraging both digital platforms and insider collusion. With ₹500 crore already funneled through mule accounts, the incident underscores the need for stronger banking security and regulatory vigilance.

As investigations continue, this case is expected to serve as a landmark example of how cybercrime networks operate and why banks, regulators, and customers must remain alert to prevent similar frauds in the future.