Police in Hyderabad have arrested seven bank officials for their alleged involvement in assisting cyber fraud networks by facilitating the creation and operation of mule bank accounts.
According to cybercrime authorities, the accused individuals are suspected of bypassing mandatory KYC (Know Your Customer) norms and enabling fraudulent accounts to be opened and used for routing illegally obtained funds. These accounts were allegedly used by cybercriminals to transfer and withdraw money from online scams, making it difficult for investigators to trace the origin of the funds.
Officials said the arrests are part of an ongoing investigation into a larger cyber fraud network operating across multiple states. The seven individuals are currently under interrogation, and police are working to track the financial trail and identify other members involved in the racket.
Authorities have not disclosed the names of the banks or the accused individuals, citing the sensitivity of the investigation. They also clarified that the case pertains to alleged misconduct by certain employees and does not imply institutional involvement of the banks concerned.
While no specific amount has been officially linked to this case so far, investigators indicated that it may be connected to broader cyber fraud operations involving significant financial transactions across the country.
Cybercrime officials warned that the misuse of mule accounts often enabled through insider access remains a major challenge in tackling digital fraud. They added that stricter monitoring systems and tighter KYC enforcement are being implemented to prevent such incidents.
The investigation is ongoing and further arrests are likely as authorities continue to uncover the full extent of the network.
