Bengaluru Police Uncover 507 Mule Accounts in Investment Fraud Probe

Cyber police in Bengaluru, India, have arrested three men after an investigation into an alleged online trading and investment scam uncovered 507 suspected mule bank accounts and possible international links. The case was opened after a resident of the city reported losing ₹93.6 lakh (approx. $98,000).

Money mules are people recruited to move illicit funds through their accounts, either knowingly or unknowingly.

Police allege the network obtained current, corporate, and trust accounts from their holders, together with net banking credentials and linked SIM cards. Some account owners were offered between ₹1.5 lakh and ₹2 lakh (between $1,600 and $2,100) in exchange and brought to their operations center in a hotel while transactions took place.

Investigators say fraudulent ZNPAY and SMS-forwarding Android apps were installed on their phones. These apps allegedly relayed one-time passwords and banking alerts, enabling the fraudsters to operate the accounts remotely and move proceeds through multiple layers. The funds were ultimately transferred to a cryptocurrency wallet. 

Police arrested Amit Mishra on September 8 and Tausif Ahmed and Parashuram Sadanand Kannanavar the following day. Six mobile phones were seized, while several other suspects remain untraced.

Forensic examination of Telegram, Botim, and WhatsApp accounts identified IP addresses associated with Kolkata, Hong Kong, and California. Authorities are verifying those findings with the relevant service providers.