Illustration: Satheesh VellinezhiSatheesh Vellinezhi
Over 500 mule accounts identified in a hilly district like Wayanad comes as no surprise considering the extent of mule accounts across the country and Kerala being a hot spot for them.
The Reserve Bank of India (RBI) and the Central Bureau of Investigation (CBI) recently revealed that there were approximately 8.5 lakh mule accounts in the country two months ago, while the Indian Cyber Crime Coordination Centre estimates that the numbers could be over 20 lakh.
The Kerala Police have recorded suspicious transactions in 14,189 accounts in 2025. District-level data show that Ernakulam has 6,107 mule accounts, while Malappuram has 2,090. Kozhikode, Thrissur, and Thiruvananthapuram have also reported significant numbers.
The State Level Bankers’ Committee (SLBC) has identified Kerala as a hot spot for mule accounts as at least 20% of the total bank accounts in the State have been flagged for re-KYC (know your customer), indicating heightened risk and misuse potential.
The CBI has uncovered 8.5 lakh mule accounts across more than 700 bank branches nationwide which are primarily used to launder funds from cyber frauds. Key urban hot spots identified include Mumbai, Delhi, Bengaluru, Gurgaon, and Kolkata, with tens of thousands of mule accounts flagged in each city.
To counteract fraud, government agencies had frozen around 4.5 lakh mule bank accounts, mostly in public sector banks, in 2024. While the CBI and the RBI are using artificial intelligence tools and enhanced KYC protocols to detect, freeze, and prevent fraudulent activity, State police forces are actively organising awareness campaigns and investigations targeting vulnerable populations, especially youngsters.
Published – September 10, 2025 09:19 am IST
