Kochi is rapidly emerging as a hub for mule accounts used by criminals allegedly to launder proceeds from online scams, police warn, even as cybercrimes targeting vulnerable groups rise.
Cybercrime investigators had recently detected around 2,000 such bank accounts in and around the city, a police officer said. Notably, most of the accounts were opened in branches of a particular bank, the official added.
The official cited an alleged lapse in know-your-customer (KYC) norms to verify account holders’ identities as the main reason behind the spike in such incidents. “It is understood that banks sometimes allow certain relaxations to promote businesses. Cybercriminals misuse these relaxations and get mule accounts opened, often in collusion with people involved in petty crimes. They then use such accounts to launder proceeds from online scams, paying the account holders a commission,” the official said.
Mule accounts have once again come under the focus of investigators following the recent arrest of a Kollam native in connection with a cyber fraud in which a city-based pharmaceuticals businessman allegedly lost nearly ₹25 crore. The woman was arrested after police reportedly discovered that around ₹4 lakh involved in the cyber stock trading fraud had been transacted through an account opened in her name.
The official said that earlier, the scammers used to target students by paying them to open bank accounts in their names. “Such cases have declined following police interventions and awareness campaigns,” he added.
District Police Chief (Kochi city) Putta Vimaladitya did not specify the number of mule accounts opened in the city but acknowledged that the police had information indicating “there were many.” “It is being investigated who facilitates the opening of such accounts,” he said.
The police have meanwhile launched a series of meetings with bank officials as part of efforts to devise joint measures to tackle cyber financial frauds amid the rise in mule accounts. “Police will discuss with bank officials the need to be more alert about transactions and to strictly monitor suspicious accounts, ATM and cheque withdrawals, as well as large transfers of money by apparent victims of virtual arrest frauds,” the police said in a statement recently.
A meeting with bank officials from both Kochi city and rural areas was held at the Cyber Crime Police Station, Kakkanad, on Saturday.
Published – September 29, 2025 01:09 am IST
