Mule Account Network Dismantled in Jammu and Kashmir Linked to Fraud and Militancy

Srinagar: A major network of mule accounts has been dismantled by security agencies in Jammu and Kashmir. These accounts were reportedly functioning as key nodes in financial frauds. Authorities suspect that the funds channeled through these accounts were being used for separatist and anti-national activities. Over 8,000 mule accounts operating in the region have been identified and frozen in the past three years.

Officials have described these mule accounts as one of the weakest and most critical links in cyber crime networks. Fraudsters often convert the stolen money into cryptocurrencies through these accounts, making it difficult to trace. Since 2017, it is suspected that separatists and militants have shifted to a new method known as "digital hawala" for transferring money.

The fraudsters avoid direct involvement and use these mule accounts as "parking accounts" to conceal their identity. They lure ordinary people by offering commissions, gaining full control over their bank accounts and online banking systems. A fraudster may manage anywhere between 10 to 30 accounts at once.

To avoid detection, large sums of money are quickly transferred through multiple accounts in small transactions. Sometimes, accounts are opened in the names of fake companies, and transactions worth up to Rs 40 lakh may take place in a single day. To bypass scrutiny, fraudsters also use VPNs and private cryptocurrency wallets that don’t require KYC. Due to security concerns, there are currently restrictions on the use of VPNs in Jammu and Kashmir.