Hyderabad: In a major crackdown on organised cybercrime, the Hyderabad Police have dismantled a massive pan-India fraud network, arresting 52 accused, including 32 bank officials, during coordinated raids across nine states.
The mission, codenamed ‘Operation Octopus 2.0’, was conducted over seven days by 16 special teams that simultaneously fanned out across Maharashtra, Delhi, Rajasthan, West Bengal, Karnataka, Gujarat, Bihar, Andhra Pradesh and Telangana. The arrests mark one of the largest coordinated actions against cyber fraud networks involving banking insiders.
The operation was led by Hyderabad Cyber Crime DCP V Aravind Babu and ACP R G Shivamaruthi, with teams executing synchronised raids across multiple locations.
Bank Officials In Direct Nexus With Fraudsters
Investigations revealed that several bank officials were actively aiding cybercriminals by opening mule accounts without proper verification and bypassing Know Your Customer (KYC) norms. These accounts were then used to route and layer illicit funds siphoned from victims.
Hyderabad Police Commissioner V C Sajjanar said the operation specifically targeted bank staff who were enabling such frauds. He said, “A major operation titled Operation Octopus 2.0 was launched to dismantle an organised cyber fraud network operating across the country. Sixteen special teams conducted coordinated raids in nine states.”
He added that some bank employees knowingly facilitated fraudsters by illegally opening accounts, making it easier for cyber gangs to move stolen money undetected.
Rs 150 Crore Fraud Linked To 850 Cases
The investigation uncovered a vast financial trail, with cybercriminals using nearly 350 bank accounts to divert funds from victims. These accounts were linked to around 850 cybercrime cases registered across the country. Police estimate that approximately Rs 150 crore in fraud was carried out through this network, highlighting the scale and sophistication of the operation.
According to Sajjanar, the rise in such cases is linked to an increase in investment scams, fake online trading platforms, and so-called “digital arrest” frauds, in which victims are threatened and coerced into transferring money.
Multi-State Operation And Key Seizures
The arrested include 32 bank officials from multiple institutions, 15 mule account holders and five middlemen who acted as account suppliers and facilitators.
During the raids, police seized several incriminating items, including mobile phones, cheque books, digital storage devices, a laptop, and stamps used by shell companies in the fraud network.
Officials said the operation required extensive coordination with law enforcement agencies across different states and showcased a high level of precision and planning.
Operation Builds On Earlier Crackdown
Police said this action builds on the earlier Operation Octopus 1, which was conducted in February this year across 16 states and led to 117 arrests. While the first phase focused on dismantling broader cybercrime networks, the second phase zeroed in on bank officials who were facilitating the creation of mule accounts.
The Commissioner added, “The scale of Operation Octopus 2 is unprecedented. Our teams worked across multiple states despite operational challenges and ensured targeted action against those involved.”
Zero Tolerance on Cybercrime
Reiterating a strict stance, Sajjanar said the police are following a zero-tolerance policy against cybercrime and will not spare anyone found complicit, including banking personnel. He also pointed out that lapses in KYC verification, particularly in private sector banks, are being exploited by cybercriminals to open fraudulent accounts.
Public Advisory: Act Within ‘Golden Hour’
Police have urged citizens to remain alert and report cyber fraud immediately to improve chances of recovering lost money. Victims are advised to call the cybercrime helpline 1930 or report complaints on the official portal www.cybercrime.gov.in without delay. Officials stressed that quick reporting within the “golden hour” is crucial to preventing further movement of stolen funds.
