Rajasthan Police have dismantled a large cyber fraud network in Alwar, exposing a racket that sold mule accounts to criminals for laundering scam money. Six people were arrested in the latest raids, including four Axis Bank employees. With these arrests, the total number of accused in the case has risen to 16. Investigators estimate that more than ₹500 crore has been routed through these accounts.

How the Scam Worked

The racket relied on creating fake current and corporate accounts using forged documents. Once opened, these accounts were sold through WhatsApp and Telegram groups to cybercriminals across India. The fraudsters then linked the accounts to fresh SIM cards and used APK files to control internet banking systems remotely.

The accounts became conduits for laundering proceeds from online betting, gaming scams, investment frauds, and crypto transactions. Criminals also circulated sensitive details such as user IDs, passwords, IFSC codes, and SIM-linked OTPs, making detection difficult.

Key Arrests and Bank Link

Among those arrested are two prime suspects — Varun Patwa, originally from Udaipur, and Satish Kumar Jat from Hisar, Haryana. The Axis Bank employees arrested were identified as Sahil Agarwal, Gulshan Punjabi, Asu Sharma, and Anchal Jat.

Police allege that the bank staff were directly involved in opening fake current accounts, which were then handed over to middlemen. These middlemen sold the accounts to cybercriminals, providing them with a ready-made system for laundering large sums.

Evidence Seized

During the raids, investigators recovered:

• 26 ATM cards
• 33 mobile phones
• 34 SIM cards
  
• ₹2.5 lakh in cash
• Cheque books, passbooks, and signed cheques
• Aadhaar and PAN cards used for forgery
• Two cars and digital devices used for OTP interception

One account flagged during the probe, under the name Laxmi Enterprises, was tied to 101 cyber fraud complaints and transactions nearing ₹2 crore. Losses of more than ₹40 crore have been traced to that account alone.

Scale of the Fraud

Police estimate that the racket is linked to over 4,000 complaints filed on the National Cybercrime Reporting Portal. While the total fraud amount is pegged at ₹500 crore, confirmed cases worth more than ₹100 crore have already been established. Authorities revealed that the network also used cryptocurrency platforms such as Binance, Bitget, and Bybit to convert laundered money into digital assets, further complicating the money trail.

Understanding Mule Accounts in Cybercrime

A mule account is a bank account that acts as a middle layer between the victim’s stolen money and the fraudster’s final wallet. The account doesn’t belong to the actual criminal but is controlled by them for moving money quickly and discreetly.

Criminals prize mule accounts because:

1. They break the money trail – Funds move through multiple accounts, making it hard to trace the original scammer.
2. They provide anonymity – Fraudsters avoid exposing their real identities by using forged documents and insider collusion.
3. They enable scale – With dozens of mule accounts, scammers can launder hundreds of crores without triggering alerts.
4. They exploit verification loopholes – Bank insiders bypass checks, allowing fraudulent accounts to pass as genuine.
5. They power underground markets – Mule accounts are resold in cybercrime groups along with SIM cards, logins, and malware.
   

Without mule accounts, large-scale financial cybercrime would be much harder to pull off. This is why they remain one of the most valuable assets in the fraud ecosystem.

The suspects have been booked under sections of the Banking Regulation Act and the Information Technology Act. Police are now working to identify financiers, additional middlemen, and other accomplices tied to the racket.

The Alwar case highlights the growing role of insider collusion in cyber fraud and the urgent need for tighter bank verification processes. It also shows how digital crimes are no longer limited to phishing or small scams but have evolved into organized operations capable of moving hundreds of crores across borders.

FAQs on the Alwar Mule Accounts Scam

Q1. What is a mule account?
A mule account is a bank account opened using fake or stolen documents and then sold to criminals. It is used to move stolen money so that investigators can’t trace the original fraudster.

Q2. How much money was involved in the Alwar case?
Investigators estimate that more than ₹500 crore was routed through mule accounts created by the racket.

Q3. How many people have been arrested so far?
A total of 16 people have been arrested, including six in the latest raid. Among them are four Axis Bank employees accused of creating fake accounts.

Q4. What types of scams used these accounts?
The accounts were used to launder proceeds from online betting, gaming scams, crypto frauds, and investment schemes.

Q5. Why is this case significant?
The Alwar scam shows how insider collusion at banks can fuel massive fraud. It also underlines how mule accounts form the backbone of cybercrime operations in India and abroad.