Srinagar, Jan 7: In a major blow to organised cybercrime and its links with terror financing, Counter Intelligence Kashmir (CIK) has intensified its crackdown on a widespread network operating mule bank accounts to launder proceeds of cyber frauds, illegal online gaming, betting rackets and other unlawful activities.
In a statement, CIK said that acting on specific and credible intelligence inputs, FIR No. 06/2025 has been registered at Police Station Counter Intelligence Kashmir under relevant provisions of the Information Technology Act, Bharatiya Nyaya Sanhita and the Unlawful Activities (Prevention) Act. The case has exposed a well-entrenched and sophisticated financial crime syndicate posing a serious threat to national economic security and digital safety.
Investigations so far have revealed a carefully orchestrated conspiracy in which accused persons, in connivance with local and outside operatives, exploited bank accounts of innocent, vulnerable and economically weak individuals by converting them into “mule accounts”. These accounts were used to route large volumes of illicit money generated through cyber frauds, banned online gaming and betting platforms, and fake investment and trading applications. Alarmingly, the funds are suspected to have been further channelled into terror financing and other activities prejudicial to the sovereignty and integrity of the nation.
CIK said the syndicate operated through gross violations of banking norms, misuse of KYC procedures, registration of non-existent firms on the UDYAM portal, identity theft, impersonation and complex money-laundering techniques to conceal the origin and destination of criminal proceeds.
A mule account is a bank or digital payment account used to receive, transfer and disguise illegally obtained money. Such accounts play a critical role in cyber-enabled crimes by distancing the actual criminals from victims and law-enforcement agencies.
During the preliminary investigation, 22 suspects operating in the Kashmir Division were identified. After obtaining search warrants from the Special NIA Court, Srinagar, CIK conducted simultaneous searches at 22 locations—17 in Srinagar, three in Budgam, and one each in Shopian and Kulgam. Substantial incriminating material, including digital devices and financial records, was seized during the operations.
So far, 22 individuals have been detained for questioning to ascertain their roles and links with cyber frauds, illegal online gaming, betting platforms and suspicious financial transactions. The investigation is at an initial stage and is expected to uncover a much wider network within and outside Jammu and Kashmir.
Counter Intelligence Kashmir reiterated its firm resolve to dismantle organised criminal syndicates, choke their financial channels and take strict action against economic offences that threaten national security. The public has been urged to remain vigilant, protect their financial credentials and report any suspicious transactions or offers to authorities. (KINS)
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