In a major crackdown on cybercrime, the Cyber Police Station of Kashmir Zone, Srinagar, has uncovered a large-scale online fraud operation involving the use of thousands of mule bank accounts to launder illegal money.

Since January 2025, authorities have identified a staggering 7,200 mule accounts operating in the Kashmir Valley. These accounts were used to transfer massive sums of money generated through cyber scams, including fake investment schemes, betting platforms, and bogus stock trading portals.

As part of four active investigations, the police have arrested 21 individuals so far, including 19 from Srinagar. Mule accounts—bank accounts used to receive and forward illicit funds—are often created under the names of individuals, shell companies, or small firms. These are typically sourced via social media platforms such as Telegram and Facebook.

According to Senior Superintendent of Police (SSP) Imtiyaz Hussain, cybercriminals—often operating from outside Jammu and Kashmir or even abroad—remotely gain access to these accounts after local handlers recruit individuals, often from economically weaker sections, by offering small commissions.

Once under their control, these accounts are linked to illegal payment gateways, used to siphon money from unsuspecting victims. The funds are swiftly routed through multiple accounts or converted into cryptocurrency to avoid detection. In some cases, scammers have exploited the bulk payment features provided by banks to move large sums rapidly.

“These accounts are typically active for only a few days before they’re flagged, but even in that short window, transactions worth crores of rupees can occur,” said SSP Hussain.

The Cyber Police were assisted by the Indian Cyber Crime Coordination Centre (i4C) under the Ministry of Home Affairs, which provided a list of the mule accounts active in the region.

The police have also pinpointed several hotspots where such accounts are being created, including areas in Srinagar such as Mehjoor Nagar, Natipora, Nowgam, Lasjan, Padshahibagh, Nowhatta, Khanyar, Rainawari, Soura, Batmaloo, Noorbagh, Qamarwari, Parimpora, Mujgund, and Bemina. Similar incidents have been reported in districts like Ganderbal, Kangan, Sumbal, Bandipora, Baramulla, Pulwama, Anantnag, Kulgam, and Shopian.

Authorities continue to investigate and have urged the public to remain vigilant and avoid sharing bank account access with unknown individuals or entities.