Kamal Ghorui
Security agencies in Jammu and Kashmir have identified and frozen over 8,000 “mule accounts” in the past three years.According to the officials, these accounts form the financial backbone of global scam networks and could fund separatist and anti-national activities.Officials described these accounts as the “weakest yet most crucial link” in the cybercrime chain, noting that without them, stolen money could not be converted into untraceable cryptocurrency, news agency PTI reported.Central security agencies have asked the Jammu and Kashmir Police and other law-enforcement bodies to consult with banks to curb the rise of mule accounts and identify middlemen commonly called “mulers” who facilitate these frauds.After the National Investigation Agency’s 2017 crackdown on illicit money flows into the region, officials said anti-national elements may have shifted to a “digital hawala” model, where commissions earned by mule account holders could be used for activities against the country.A muler typically does not contact victims or send fraudulent links. Instead, officials said, their role is arranging and maintaining a steady supply of mule accounts for scammers while concealing their identities.Such accounts often belong to ordinary individuals lured with promises of “easy commission” and minimal risk. They are persuaded to give full control of their bank accounts, including their net banking credentials.Investigators found that a single scammer may be supplied with 10 to 30 mule accounts at a time. In several cases, accounts are opened in the names of fictitious companies, enabling large transactions of up to Rs 40 lakh in a single day without immediately raising alarms.Officials said the money trail is deliberately complex, with funds quickly shifted across multiple accounts and broken into smaller transactions to avoid detection.Law-enforcement agencies stressed that even if mule account holders do not design scams or interact with victims, they remain active facilitators of money laundering. “The entire scam ecosystem depends on these accounts. Without a destination for the money, the scam fails at the first step. Those renting out their accounts are not just victims of circumstance; they are the engines of the crime,” a senior official said.A study by central security agencies also found individuals in countries such as China, Malaysia, Myanmar and Cambodia directing people in the Union Territory to create private crypto wallets. These wallets are often set up using Virtual Private Networks (VPNs) to avoid detection and requiring no Know Your Customer (KYC) verification. The J&K police have already suspended the use of VPNs in the Valley, noting that terrorists and separatists often exploit the technology to evade tracking, PTI reported.
