Indian Police Dismantle ₹240 Crore Mule Account Network Linked to Dubai-Based Fraud Operation

Indian authorities have arrested 12 individuals and seized assets worth ₹1 crore (£96,000) in connection with a sophisticated financial fraud network that allegedly used "mule accounts" to launder proceeds from online gambling operations. The crackdown, led by Hulimavu Police in Bengaluru, has exposed a cross-border criminal enterprise allegedly controlled from Dubai that may have processed as much as ₹240 crore (£23 million) in fraudulent transactions over the past two years.

The investigation revealed how vulnerable individuals, particularly those in financial distress, were targeted at public locations including near Victoria Hospital, where fraudsters offered small commissions in exchange for identity documents to open bank accounts that were then exploited for illegal financial activities.

Background and Context

The operation came to light on November 28, 2025, when Hulimavu Police received intelligence about two individuals opening bank accounts in other people's names and transferring them to a Dubai-based handler for illegal monetary gain. The case highlights a growing trend of cyber-enabled financial fraud that exploits regulatory gaps and banking system vulnerabilities, particularly in regions with high levels of economic inequality.

According to cybersecurity experts, mule account schemes have proliferated globally as digital banking has expanded, with criminal networks increasingly targeting economically vulnerable populations to serve as unwitting participants in sophisticated money laundering operations.

Key Figures and Entities

At the center of the alleged operation is Mohammed Huzaif, a 23-year-old college dropout described by investigators as the kingpin's close confidant who has been managing the network for the past two years. Police records show Huzaif possessed more than two dozen mobile phones, including a satellite phone, suggesting sophisticated communications capabilities.

The investigation was conducted under the guidance of Deputy Commissioner of Police M. Narayana (Electronic City Division) and Assistant Commissioner of Police K.M. Satish (Electronic City Sub-Division), with Inspector B.G. Kumaraswamy of Hulimavu Police Station leading the operation. City Police Commissioner Seemant Kumar Singh announced a ₹50,000 cash reward for the police team, emphasizing the significance of the bust.

Legal and Financial Mechanisms

The fraud scheme relied on exploiting India's banking system by creating "mule accounts"—legitimate-looking bank accounts opened with stolen or borrowed identities that serve as conduits for illicit funds. According to police interrogations, the accused would approach financially distressed individuals, offering commissions of up to several thousand rupees for their identity documents.

These accounts were then used to route and launder proceeds from online gambling operations, with investigators having identified transactions worth ₹24 crore already traced to the network. The operation's sophistication was evidenced by the seizure of 242 debit cards, cryptocurrency-related materials, and digital payment rings, suggesting a multi-layered approach to moving funds across different financial systems.

The seized assets—including 531 grams of gold ornaments, seven laptops, and 58 mobile phones—paint a picture of a well-funded criminal enterprise that allegedly purchased expensive gold and diamond jewellery for the suspect's family members.

International Implications and Policy Response

The alleged Dubai connection underscores the transnational nature of modern financial crime, with criminal networks exploiting regulatory differences between jurisdictions to conceal their activities. According to international financial crime experts, such operations often involve complex layers of corporate structures across multiple countries to obscure beneficial ownership.

The case highlights growing challenges for Indian and international authorities in combatting cyber-enabled financial fraud, particularly as criminals increasingly target vulnerable populations to participate in their schemes. Financial regulators worldwide have been working to strengthen Know Your Customer (KYC) requirements and implement more sophisticated monitoring systems to detect suspicious patterns of account opening and transactions.

According to police officials, investigations continue to track the Dubai-based handler believed to be orchestrating the operation, with authorities working through international channels to address the cross-border dimensions of the alleged criminal network.

Sources

This report draws on police statements from the Hulimavu Police Station, court records from Bengaluru and Delhi, and official communications from the Bengaluru City Police Commissioner's office regarding the operation conducted between November 2025 and January 2026.