Indian authorities are raising concerns as more young people fall victim to large-scale international financial fraud, unknowingly acting as “mules” for criminal networks. These groups exploit their bank accounts to move massive amounts of illicit funds, often without the account holders’ awareness.
The Waiter Lured by Easy Money
Take the case of Ajay, a 24-year-old waiter from Lucknow. He told police that a friend introduced him to a “cryptocurrency trader” who offered him 20,000 rupees (about $240) to let them use his bank account for just one day. Looking to supplement his income, Ajay agreed.
The following day, hundreds of millions of rupees were deposited into his account. He received detailed instructions on how much cash to withdraw and where to hand it over. Ajay had no clue he was part of a sophisticated international fraud operation.
From Unwitting Participant to Police Collaborator
Weeks later, police visited Ajay, informing him his account had been used to launder cybercrime proceeds. He began cooperating with authorities, helping track other account holders and middlemen tied to a criminal syndicate with connections across Cambodia, Laos, Vietnam, and Thailand.
How the “Mule” Account System Operates
India’s cybercrime units report a well-organized network that has exploited dozens of fake or rented accounts in the last three months. These accounts typically belong to young people from lower-income neighborhoods, students, or small business employees.
They receive commissions between 10,000 and 30,000 rupees for “loaning” their accounts. The illicit funds are then funneled through peer-to-peer networks and converted into digital currencies—most often the stablecoin USDT.
Telegram Channels as the Command Center
Investigations reveal that these operations are coordinated via encrypted Telegram channels run by Chinese handlers. Local recruiters find account holders, intentionally bypassing standard identity verification (KYC) procedures.
On transaction days, mule account holders are escorted to banks to withdraw cash, which is then handed over to “brokers” who convert it into cryptocurrency and send it abroad.
Alarming Scale and Police Response
In one month alone, Lucknow police traced 5 million rupees (~$570,000) laundered through these accounts. About 60 young men have been arrested for their accounts being used in fraud schemes involving millions of rupees.
“These youths are not hardened criminals, but their accounts enable large-scale fraud operations,” said Rallapalli Vasanth Kumar, Deputy Commissioner of Police, South Lucknow, to PTI. Many of those arrested expressed remorse and admitted they underestimated the legal risks involved .