Srinagar: The intelligence wing of the Jammu and Kashmir Police on Wednesday launched a major crackdown against a cyber terror syndicate in Kashmir. During the operation, conducted across the valley, 22 people were detained in connection with a syndicate operating ‘mule bank accounts’ to launder money earned through cyber fraud, illegal online gaming, betting rackets, and other illicit activities.
The Counter Intelligence Kashmir (CIK) wing of the Jammu and Kashmir Police apprehended them from four districts, including Srinagar, Budgam, Shopian, and Kulgam. Seventeen of the detainees were from Srinagar, three from Budgam, and one each from Shopian and Kulgam.
A CIK official said, “So far, 22 individuals have been detained for questioning to ascertain their exact role and connections in cyber fraud, illegal online gaming, betting platforms, and suspicious financial transactions.”
The official added that during the searches, significant incriminating material, including digital devices and financial records crucial for the investigation, was seized. According to the official, the investigation is in its initial stages, and “the evidence gathered is expected to help identify a much larger network operating in Jammu and Kashmir and other parts of the country.”
Counter Intelligence Kashmir confirmed that they will dismantle organized criminal syndicates, disrupt their financial pipelines, and take strict action against all economic crimes and activities that threaten national security.
The CIK stated, “Those who knowingly or unknowingly misuse the banking system will face severe legal consequences.” They appealed to the public to remain vigilant, secure their financial credentials, and report any suspicious offers or transactions to the authorities. This case was filed by the Police Station Counter Intelligence Kashmir in June 2025 under several sections of the Information Technology Act, 2000, and various sections of the Bharatiya Nyaya Sanhita, 2023, including Section 13 of the Unlawful Activities (Prevention) Act, 1967, uncovering a powerful and well-established financial crime syndicate that posed a serious threat to the country’s economic security and digital safety.
The CIK investigation unearthed a well-orchestrated conspiracy in which the accused, in collusion with local and external individuals, misused the bank accounts of innocent, vulnerable, and economically disadvantaged people, converting them into “mule accounts.”
It stated, “These accounts were used as temporary conduits to channel large amounts of illicit money earned from cyber fraud and online scams, banned online gaming and betting platforms, and fake investment and trading applications.”
It further added that the illegally acquired money is suspected of being used for terror financing and other activities detrimental to the sovereignty and integrity of the country.
The syndicate operated through gross violations of banking regulations, “misuse of KYC processes, registration of business establishments on the UDHAYAM portal which were subsequently used for opening accounts, provision of virtual account numbers, identity theft, impersonation, and sophisticated money laundering techniques deliberately designed to conceal the origin and location of criminal proceeds.”
What is a Mule Account?
A mule account is a bank or digital payment account used by criminals to receive, transfer, and conceal illegally obtained money. The account holder, known as a money mule, may be complicit, willfully ignorant, or completely unaware that their account is being misused. Mule accounts are a crucial part of cybercrime, facilitating the layering stage of money laundering by keeping the real criminals distanced from the victims and law enforcement agencies. These accounts are widely used in phishing and identity theft scams, online trading and investment fraud, fake loan apps, illegal payment gateways, and online gaming and betting fraud, among others.
How Cyber Fraudsters Target Victims
Typically, fraudsters initiate the scam through phone calls, SMS, WhatsApp or Telegram messages, or social media and search engine advertisements.
They impersonate police officers, bank/RBI officials, loan agents, job recruiters, or investment advisors. Common scams include fake online shopping offers, fraudulent trading and investment apps, online gaming and betting traps, threats of digital arrest, or fake KYC or SIM-blocking warnings.Victims are forced to transfer money to so-called “safe” or “verification” accounts via UPI, net banking, or cards. In many cases, victims are tricked into sharing OTPs, PINs, or passwords, allowing the fraudsters to gain complete control of their accounts.
The intelligence wing’s investigation uncovered a recurring and systematic recruitment model that specifically targeted vulnerable groups such as students, unemployed youth, small shopkeepers, daily wage earners, and villagers. They were lured with attractive offers such as work-from-home opportunities, payment processing jobs, and overseas employment.
