Over 500 people, mostly young residents of Kerala’s Wayanad district, have fallen victim to a widespread ‘mule account’ scam, where fraudsters from outside rent local bank accounts and misuse them for illegal transactions, cyber police officials said.
The accounts were used for money laundering and other offences in northern and north-eastern states of India. Victims are now facing criminal cases, with some arrested by police in distant states such as Nagaland and notices issued in places like Dehradun and Lucknow. Officials urge early reporting and warn against sharing bank details with unknown parties to avoid legal trouble.
The Scam’s Modus Operandi and Its Victims
The scam typically targets youngsters and students who are lured by promises of easy money in exchange for renting out their bank accounts, ATM cards, or even linked SIM cards, sometimes for as little as Rs 2,000 to Rs 10,000. Fraudsters use these accounts to carry out illegal money transfers linked to cybercrimes like investment fraud and impersonation.
Investigations reveal cases where large sums, sometimes lakhs of rupees, were routed through single accounts. For example, 27-year-old Ismayil from Kambalakkad was arrested by Nagaland police after Rs 4.2 lakh passed through his account linked to a scam. Many victims only learn of the crime after police begin investigations or freeze the accounts.
Police Response and Wider Regional Impact
Wayanad police have been actively investigating the scam, with cases reported not just in Wayanad but also in neighbouring districts such as Malappuram and Kozhikode. Police caution that once criminal cases are filed in other states, local authorities have limited ability to assist. Wayanad Superintendent of Police Taposh Basumatari urged victims to come forward promptly so the police could help them avoid becoming accused.
Cyber Police Inspector Shaju Joseph emphasised the role of middlemen who recruit unsuspecting youths through online or part-time job offers, leading to their accounts being exploited for illegal activities. Police campaigns now focus on raising awareness and urging caution in sharing banking information.
Expert Advice for Consumer Safety
Experts recommend that consumers should never share bank account details, ATM cards, OTPs, passwords, or SIM cards with unknown or unverified individuals, no matter how attractive monetary offers may sound. Financial literacy about online scams and digital hygiene is critical, especially for young adults and students.
Users should regularly monitor their bank accounts for unusual activity and report any suspicious transactions immediately to their bank and law enforcement. Job seekers are urged to verify the legitimacy of online job portals and be wary of offers requiring them to ‘receive and transfer’ money on behalf of others.
The Logical Indian’s Perspective
The ‘mule account’ scam highlights how vulnerable young people can be to exploitation when promises of quick cash cloud judgement. The Logical Indian appeals to communities, educators, and authorities to strengthen awareness campaigns and promote responsible digital and financial practices among youth.
It is equally critical for law enforcement to offer timely help and adopt victim-friendly approaches to protect the innocent from becoming scapegoats in complex criminal networks.
