Operation Chakra-V: CBI Targets Cyber Fraud Nexus, Cracks 8.5 Lakh Mule Account Network
(Judicial Quest News Network)
Delhi 26, June 2025-In a significant step toward combating organized cybercrime in India, the Central Bureau of Investigation (CBI) has launched a sweeping nationwide crackdown on a massive cyber fraud network involving mule bank accounts. Acting on verified intelligence inputs, the agency conducted simultaneous searches at 42 locations across five states—Rajasthan, Delhi, Haryana, Uttarakhand, and Uttar Pradesh—as part of its ongoing effort under ‘Operation Chakra-V’.
The operation targets a sophisticated syndicate of cyber fraudsters engaged in digital arrest scams, identity impersonation, fake advertisements, investment-related frauds, and UPI-based financial crimes. These fraudsters are accused of illegally transferring money siphoned from victims into numerous “mule accounts” opened across the country.
Alarming Findings Uncovered
According to CBI’s preliminary findings, over 8.5 lakh mule bank accounts have been traced to more than 700 branches of various Indian banks. These accounts were often opened either without proper Know Your Customer (KYC) documentation, without due diligence, or without conducting required initial risk assessments. Investigators have noted that many banks failed to follow the guidelines mandated by the Reserve Bank of India (RBI) and their own internal compliance procedures.
Bank officials and middlemen reportedly played a critical role, facilitating account openings and enabling withdrawals of fraudulently obtained funds. Lapses identified include failure to carry out enhanced scrutiny on suspicious transactions and neglect in verifying customer addresses, such as not dispatching acknowledgment letters after account activation.
Legal Action and Arrests
Based on the enquiry, the CBI has registered a formal case under various provisions of the Indian Penal Code (IPC), Bhartiya Nyaya Sanhita (BNS), and the Prevention of Corruption Act. Offences include criminal conspiracy, cheating, forgery, use of forged documents, and misconduct by public officials.
As a result of the raids, nine individuals—including agents, bank correspondents, aggregators, account holders, and middlemen—have been arrested. Authorities have also seized incriminating documents, digital evidence, mobile devices, KYC forms, and transaction records during the searches.
A Broader Commitment to Fight Cybercrime
This latest action forms part of the Indian government’s broader crackdown on cybercrime networks and digital financial frauds. Through Operation Chakra-V, the CBI is determined to dismantle the structural and institutional enablers of cyber fraud, send a strong message to wrongdoers, and restore public trust in the financial system.
The arrested individuals are currently being produced before the relevant courts, and investigations are ongoing to uncover the full extent of the conspiracy and bring all culpable individuals and institutions to justice.
