J&K Hawala Racket Busted: 8000 Mule Accounts Frozen in Cyber Crackdown
J&K security agencies freeze over 8000 mule accounts in major hawala and cyber fraud bust.
In a major crackdown, central security agencies have dismantled what officials describe as a rapidly expanding ecosystem of “mule accounts” operating across Jammu and Kashmir. Over the past three years, more than 8,000 such bank accounts have been identified and frozen. Authorities believe these accounts formed a critical financial conduit for large-scale cyber fraud and possible separatist funding activities.
According to cybercrime officials, the frozen accounts were allegedly used to launder funds generated through online scams, which were then converted into untraceable cryptocurrency. Investigators termed mule accounts the “weakest yet most crucial link” in the cybercrime chain, as they enable fraudsters to move stolen money without directly exposing themselves. The crackdown follows a recent bust of a cryptocurrency-based terror funding racket in the region.
Central agencies have now urged the Jammu and Kashmir Police and other law enforcement bodies to coordinate closely with banks to prevent the proliferation of such accounts. Authorities have also called for identifying middlemen, commonly known as “mulers,” who arrange and supply these accounts to scammers. Officials suspect that after the National Investigation Agency intensified its action against illicit funding in 2017, anti-national elements may have shifted towards a more discreet “digital hawala” model.
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Investigations reveal that mulers rarely contact victims directly; instead, they operate behind the scenes by recruiting individuals willing to lend their bank accounts for commissions. Many account holders are reportedly enticed with promises of easy earnings and minimal risk. In several cases, fake companies were created to open bank accounts capable of handling transactions of up to Rs 40 lakh in a single day without triggering immediate suspicion.
Officials explained that once funds are deposited, they are quickly fragmented and transferred through multiple accounts to obscure the money trail. Security agencies emphasised that even if mule account holders do not design scams, their active participation in providing banking access makes them complicit in financial crimes. Authorities have reiterated that dismantling this financial infrastructure is essential to disrupting transnational fraud networks and preventing funds from being diverted towards unlawful activities.
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