Guwahati: CID arrests bank service point operator over 'mule' accounts

The Cyber Cell of Assam Police's Criminal Investigation Department (CID) on Wednesday, November 11, arrested a man from Guwahati's Jalukbari area for allegedly opening bank accounts in other people's names without their knowledge and letting them be used for cyber fraud.

The accused has been identified as Naveen Hussain, who allegedly ran an HDFC Bank Customer Service Point (CSP) in Jalukbari, according to India Today NE, The Sentinel and Pratidin Time.

How the alleged fraud worked

Investigators suspect that Hussain introduced himself to people as an HDFC Bank employee to collect their personal and banking details, and then used the details to open accounts in their names without their consent. Police believe these were "mule" accounts, used to receive and move money generated through cyber fraud and other illegal activity. The alleged operation is thought to have run for a long period.

Police found that several lakh rupees had been deposited into accounts linked to him. In the latest instance, about Rs 5 lakh was allegedly transferred into one such account.

The CID has frozen several bank accounts connected to Hussain. Multiple cases have reportedly been registered against him at different police stations over alleged financial fraud.

Wider network under scrutiny

The Cyber Cell has received information that Hussain may have been part of a larger network dealing in fraudulent banking transactions, and investigators are trying to identify others involved and trace the flow of money, the reports said. A comment from the bank had not been reported.

Customer service points are small outlets run by agents on behalf of banks, often in neighbourhoods without a full branch, where people can open accounts, deposit and withdraw cash. Because agents handle identity documents and account opening, police have warned that misuse at such points can leave ordinary people unknowingly linked to fraud.

Why mule accounts matter

Mule accounts are a key tool for cyber criminals, who use them to receive stolen money and quickly pass it through several layers before it is withdrawn, making it harder for victims and police to trace. Indian banks and police agencies have been tightening checks on such accounts.

Police advise people not to share Aadhaar, PAN, OTPs or bank details with anyone who is not verified, to check their credit reports and bank statements for accounts they did not open, and to report suspected fraud on the national cyber crime helpline 1930 or at cybercrime.gov.in.