Delhi Police bust Rs 7.36 crore mule-account fraud network; six held
By Rhea MalhotraDigital Life Writer, Peepals Yuva
Representative image: AS_Photography / Pixabay
Delhi Police say 37 mule accounts opened with labourers' forged papers received Rs 7.36 crore of fraud money; six, including a bank manager, were arrested.
What Happened
Delhi Police say they have broken up a cyber-fraud network that used 37 suspected "mule" bank accounts to receive about Rs 7.36 crore taken from victims across India, and have arrested six people, including a bank manager, according to reports on October 23, 2026. Police said the accounts were opened with forged signatures and identity documents of unsuspecting daily-wage labourers, and that part of the money was converted into cryptocurrency. The accounts are linked to 99 complaints of online fraud filed in different parts of the country.
Key Facts
- Police identified 37 suspected mule accounts that received about Rs 7.36 crore in fraud money.
- The accounts are linked to 99 cyber-fraud complaints from across India.
- Six people have been arrested, including a bank manager, according to police; reports differ on whether a second bank employee was among them.
- Police allege the accounts were opened using forged signatures and KYC (know-your-customer) documents of daily-wage labourers who did not know their identities were being used.
- Some of the money was converted into cryptocurrency, reported to be the dollar-linked token USDT, according to police.
- These are police allegations; no charges or court proceedings have been reported yet.
Why It Matters
Almost every online scam, from fake job offers and investment apps to "digital arrest" calls and fake shopping sites, needs one thing to work: a bank account to receive the money that is hard to trace back to the fraudsters. That is what a mule account is. It is opened in the name of someone else, often a poor or unaware person, or rented from someone tempted by a small payment, and used to collect stolen money before it is moved on, withdrawn or converted into cryptocurrency.
The Delhi case shows how such networks operate. Police say the identities of labourers were misused without their knowledge, and that a bank insider was involved, which would explain how accounts with forged documents passed the checks that are supposed to stop them. Converting the money into cryptocurrency makes it harder to follow and to recover for victims.
For young people, the warning is direct. Fraudsters often approach students and job seekers on messaging apps and social media, offering easy money to "lend" a bank account, a SIM card or identity documents for a few days. Doing so can make the account holder part of a criminal chain, with their account frozen and police action against them, even if they never saw the victims. Sharing Aadhaar or PAN details carelessly, or handing over a bank kit or SIM to someone else, carries the same risk.
The case is also a reminder for victims. Anyone who loses money to an online scam should report it at once on the national cyber-crime helpline 1930 or the portal cybercrime.gov.in. Fast reporting gives the best chance of freezing money while it is still in a mule account, before it is moved or converted.
| Detail | What police say |
|---|---|
| Mule accounts | 37 |
| Money received | about Rs 7.36 crore |
| Complaints linked | 99, from across India |
| Arrests | 6, including a bank manager |
| Method | forged signatures and KYC of labourers; part converted to cryptocurrency |
Impact
Short-term: Police investigations will now try to trace the money, identify the people behind the scams that fed these accounts and establish the role of each person arrested. Victims linked to the 99 complaints may learn whether any money can be frozen or recovered.
Long-term: The involvement of a bank employee adds pressure on banks to tighten account-opening checks and to watch for accounts that suddenly receive many small deposits from different places.
Who is affected: Victims of online fraud across India, labourers whose identities were misused, banks and their staff, and young people who are targeted to rent out accounts.
Key Takeaway
Delhi Police say a network used 37 mule accounts opened with labourers' stolen identities to move Rs 7.36 crore of fraud money, a reminder never to lend a bank account, SIM or ID to anyone.
Questions and Answers
What is a mule account?
It is a bank account used to receive and move money from scams or other crimes, often opened in someone else's name or rented from its holder, so the real criminals stay hidden.
What did Delhi Police find in this case?
Police say 37 mule accounts received about Rs 7.36 crore linked to 99 fraud complaints across India, and they arrested six people, including a bank manager, according to reports on October 23, 2026.
Can I get into trouble for lending my bank account?
Yes. If fraud money passes through it, your account can be frozen and you can face police action, even if you did not know about the scam.
What should I do if I lose money in an online fraud?
Report it immediately on the cyber-crime helpline 1930 or at cybercrime.gov.in, and inform your bank, so the money can be frozen quickly.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
By Rhea Malhotra, Digital Life WriterCovers Digital Life and more for Peepals Yuva. All stories by Rhea Malhotra
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Rhea Malhotra is a pen name of the Peepals Global Editorial Team, which researches, fact-checks and publishes every story. The portrait is an illustration.
