Asif Rashid
Jammu/Srinagar, Feb 16: Security agencies have uncovered a large and well-organized network of fake, or “mule,” bank accounts in Srinagar and across Jammu and Kashmir, freezing more than 8,000 such accounts over the past three years.
Officials said these accounts were allegedly being used to route illicit funds suspected to be linked to separatist and anti-national activities. The action has exposed a complex money-laundering ecosystem that relies heavily on mule accounts to move and conceal illegally obtained money.
According to authorities, mule accounts form a critical link in cybercrime operations. Without them, converting fraud proceeds into cryptocurrency and obscuring financial trails becomes significantly more difficult. In response, security agencies have directed the Jammu and Kashmir Police and other law enforcement bodies to work closely with banks to identify, monitor, and shut down such accounts, while also tracing individuals involved in the racket.
Officials believe that after the crackdown on illegal funding in 2017 by the National Investigation Agency, anti-national elements have shifted to new methods, including “digital hawala,” to move money. Under this system, funds are transferred through intermediaries and later used for activities deemed harmful to national security.
Investigations reveal that individuals who provide their bank accounts usually do not interact directly with victims or send fraudulent links. Instead, they are lured with promises of commission and “low risk,” and persuaded to hand over full control of their accounts for a limited period. These accounts are then used to transfer scammed money across multiple channels, making detection harder.
What is a Mule Account?
A mule account is a bank account used by cybercriminals to transfer or launder money obtained through fraud, allowing them to hide their real identities. In most cases, these accounts belong to ordinary individuals who knowingly or unknowingly allow criminals to use their bank details.
Security agencies have warned the public against sharing bank credentials, stressing that even temporary misuse of one’s account can lead to serious legal consequences.
