In a significant move, the Hyderabad City Police have arrested 52 persons, including 32 bank officials, in a coordinated multi-state crackdown on organised cyber fraud networks under ‘Operation Octopus 2.0’.
The operation was led by DCP (Cybercrimes) V. Aravind Babu and ACP R. G. Siva Maruthi. The operation was carried out across nine States over seven days, targeting bank officials, mule account holders and intermediaries allegedly involved in facilitating large-scale cyber frauds.
Police said the arrests included 32 bank officials, 15 mule account holders and five middlemen who were involved in procuring and operating bank accounts used to route fraudulent funds.
According to officials, the investigation revealed that around 350 bank accounts were used to siphon off money linked to nearly 850 cyber crime cases across the country, involving transactions amounting to about ₹150 crore.
These cases include investment scams, trading frauds and digital arrest scams, where victims are coerced through intimidation and manipulation.
As part of the operation, 16 special teams were formed and deployed simultaneously in Maharashtra, Delhi, Rajasthan, West Bengal, Karnataka, Gujarat, Andhra Pradesh, Telangana and Bihar.
Police said several bank officials across multiple private sector banks were found to have facilitated the opening of mule accounts by bypassing due diligence and KYC norms.
Police have arrested Bank staff from various banks including IndusInd Bank, Bandhan Bank, Bank of Baroda, Federal Bank, IDFC First Bank, Karnataka Bank, Karur Vysya Bank, AU Small Finance Bank, Equitas Small Finance Bank and HDFC Bank.
Investigators said mule account holders knowingly allowed their accounts to be used for laundering illicit funds, while middlemen played a key role in sourcing such accounts and transferring money to higher-level operatives.
During searches, police seized 26 mobile phones, 14 cheque books, two pen drives, a laptop and 21 stamps linked to shell companies. Commissioner of Police V.C. Sajjanar said strict action would be taken against all those involved, including bank officials, for facilitating such frauds.
Bank Employees should be highly vigilant while opening bank accounts. Mule accounts are increasing day by day. Bank Staff should verify customers properly.
