Gujarat Police Bust ₹2,289 Crore Cyber Fraud Network

Ahmedabad: In one of the largest cybercrime crackdowns undertaken in the country, Gujarat Police has uncovered cyber frauds worth an estimated ₹2,289 crore and arrested 638 accused persons under a special statewide operation targeting mule bank accounts used by online fraudsters.

The operation, named “Operation Mule Account 1.0,” was launched in 2025 by the Cyber Centre of Excellence (CCoE) to dismantle financial networks that facilitate cybercrime by allowing criminals to transfer and launder illegally obtained funds through bank accounts opened in the names of unsuspecting or recruited individuals.

According to officials, the extensive investigation led to action against 913 mule bank accounts, the registration of 565 FIRs, and the identification of thousands of cybercrime cases linked to fraud networks operating across India.

Massive Cyber Fraud Network Exposed

A statement issued by the Gujarat government on Monday revealed that investigators analyzed data collected from multiple national cybercrime monitoring platforms, including the Indian Cyber Crime Coordination Centre (I4C), the National Cyber Crime Reporting Portal (NCRP), coordination portals, and the national cybercrime helpline 1930.

Based on this intelligence, Gujarat Police established a coordinated framework by appointing nodal officers in every district and deploying dedicated support teams to investigate complaints received from victims and law enforcement agencies.

Officials stated that the operation enabled investigators to trace a vast web of cybercriminal activities involving fraudulent transactions, online scams, digital payment frauds, investment scams, and other financial cybercrimes.

565 FIRs Registered, 638 Arrested

As a result of the investigation, law enforcement agencies registered 565 criminal cases and arrested 638 individuals allegedly involved in operating or facilitating mule bank accounts.

Authorities also froze or seized 913 bank accounts suspected of being used for routing proceeds of cybercrime.

Investigators identified 4,052 cybercrime incidents connected to the network across various states. Among these cases, 491 victims were from Gujarat, highlighting the significant impact of cyber fraud on residents within the state.

The total estimated value of the fraud linked to the identified cases was calculated at approximately ₹2,289 crore, making it one of the most substantial cybercrime investigations conducted in recent years.

Understanding Mule Bank Accounts

Cybercrime experts describe mule accounts as bank accounts used to receive, transfer, and conceal funds generated through fraudulent activities.

Criminals often recruit individuals through social media advertisements, fake job offers, commission-based schemes, or other deceptive methods to provide access to their bank accounts. These accounts are then used to move stolen money through multiple transactions, making it difficult for investigators to trace the final beneficiaries.

Law enforcement agencies have increasingly focused on disrupting mule account networks because they serve as a critical link between cybercriminals and illicit financial gains.

Officials believe that dismantling such financial channels can significantly weaken organized cybercrime syndicates operating across the country.

Technology-Driven Monitoring System Introduced

To strengthen efforts against cyber-enabled financial crimes, authorities are now moving toward a more technology-driven approach.

The government announced that a new risk scoring system is being implemented by the Indian Digital Payment Intelligence Corporation (IDPIC) under the guidance of the Reserve Bank of India (RBI).

The system will utilize artificial intelligence (AI) and advanced data analytics to identify suspicious banking transactions and potentially fraudulent accounts in real time.

Under the proposed framework, financial transactions will be categorized into three risk levels:

• Low Risk
• Medium Risk
• High Risk

This classification will enable banks and financial institutions to identify suspicious activities more effectively and take preventive action before funds are moved through fraudulent channels.

AI to Help Detect Suspicious Accounts

Officials stated that the AI-based monitoring mechanism will analyze transaction patterns, account behavior, and financial activities to generate risk scores for individual accounts.

Banks will be able to use these risk assessments to conduct enhanced due diligence, freeze suspicious transactions, or initiate further investigations when necessary.

The objective is to create an early warning system capable of detecting cybercrime-linked financial activity before significant losses occur.

Experts believe such technology can greatly improve the speed and accuracy of identifying fraud networks that operate across multiple jurisdictions and financial institutions.

Centralized Registry for Information Sharing

As part of the broader anti-cybercrime initiative, authorities have also established a centralized registry designed to facilitate information sharing among banks and financial institutions.

The registry will allow participating institutions to exchange intelligence regarding suspicious accounts, unusual transaction patterns, and emerging fraud trends.

Officials say that improved coordination between banks is essential because cybercriminals frequently move funds across multiple accounts and institutions to avoid detection.

The Indian Digital Payment Intelligence Corporation (IDPIC) has been designated as the nodal agency responsible for managing the system and coordinating information exchange among stakeholders.

Growing Focus on Cybercrime Prevention

Cybercrime continues to pose a significant challenge across India, with fraudsters increasingly exploiting digital payment platforms, online banking systems, and social media channels to target individuals and businesses.

Law enforcement agencies have intensified efforts to tackle cyber-enabled financial crimes through technology-driven investigations, public awareness campaigns, and enhanced cooperation between state police forces, central agencies, and financial institutions.

Officials stated that the success of Operation Mule Account 1.0 demonstrates the effectiveness of data-driven policing and coordinated intelligence gathering in combating modern cybercrime networks.

Investigation Continues

Authorities have indicated that investigations remain ongoing and additional arrests may follow as financial records, digital evidence, and transaction trails are examined.

Law enforcement agencies are also working to identify the masterminds behind the fraud networks and recover funds linked to cybercrime activities.

With cybercriminals increasingly relying on mule accounts to conceal illicit transactions, officials believe that continued monitoring, advanced analytics, and stronger cooperation between banks and investigators will be crucial in preventing future fraud and protecting citizens from financial cybercrime.