Cyber fraudsters lure mule account holders with flight tickets, lavish hotel stays

On a Facebook group where sale and purchase of bank accounts was done openly, a post by user named Chen read, “We are a Chinese game company. This is a company that runs pure games. We welcome all Indian agents and account holders.” Below this post there was a ‘rate card’ enlisting percentage commission offered to account holders against various private and public sector bank accounts. The cab driver had been targeted through this group, an investigator said.

Another such post on a Telegram group read, “Need corporate account for pure gaming work. No cyber issue, no complaint and we use full volume. We have a political fund also and give a good percentage.” Cyber Investigators from Pimpri Chinchwad police found that mule bank accounts, the backbone of online scams, are being openly bought and sold on social media with sellers and buyers placing their bids on Facebook and Telegram groups.

In an advisory to citizens, the Indian Cyber Crime Coordination Center (I4C) of the Ministry of Home Affair warned against illegal payment gateways created using mule bank accounts by Transnational Organized Cybercriminals.

“Current accounts and saving accounts are scouted through social media, majorly from Telegram and Facebook. These accounts belong to shell companies, enterprises or individuals. These mule accounts are then controlled remotely from overseas. An illegal payment gateway is then created using these mule accounts given to criminal syndicates for accepting deposits on illegal platforms like fake investment scam sites and other scams.”

Deputy Commissioner of Police (Crime), with Pimpri Chinchwad police, Dr Shivaji Pawar said, “The international cyber criminals operating through these predatory Facebook and Telegram groups promise citizens a commission of two to five per cent on the amount deposited. They are persuaded to open current or savings bank accounts. After promising commission, these people are sent air tickets to various locations in India. At these locations the mule account holders are accommodated at high end hotels and resorts to gain their trust. Once the mule account holders reach the location and place of accommodation, the fraudsters take forced possession of bank account kits — which include cheque book, ATM card, online banking details, and SIM card linked to bank accounts and passbook — and use them to carry out transactions for Cyber crimes.”

Investigators said that after money is credited to the citizen’s bank account, it is either transferred to other bank accounts from where it is siphoned via cryptocurrency or in some cases these mule account holders are pressured to withdraw cash for the Cyber criminals. When these accounts get flagged in cyber fraud investigation, the accounts are freezed and the holders face arrest and prosecution.

Highlighting the I4C advisory, the Pimpri Chinchwad police have warned citizens against selling or renting their bank accounts. Officials said that the Cyber criminals can also ask for company registration certificates or Udhyam Aadhaar Registration certificates of small businesses and use them to open such mule accounts in the names of these companies. Illicit funds deposited in such bank accounts can lead to legal consequences, including arrest.