Gujarat Police uncover cyber fraud worth ₹2,289 crore in statewide crackdown on mule accounts

Gujarat Police has unearthed cyber fraud transactions worth ₹2,289 crore during a statewide operation targeting mule accounts, leading to hundreds of arrests and the identification of thousands of cybercrime-linked cases, officials said.

The operation, dubbed ‘Operation Mule Hunt 1.0’, was conducted by the Gujarat Police's Cyber Centre of Excellence (CCOE) as part of efforts to curb cybercrime and prevent fraudsters from misusing the banking system.

Officials said the operation focused on identifying and dismantling networks of mule accounts, bank accounts used by cybercriminals to receive, transfer, and launder money obtained through online frauds and other cyber offences.

A mule account is typically operated by a ‘money mule’, who knowingly or unknowingly allows their bank account to be used for the movement of illicit funds.

According to the state government, the operation involved police commissioners, range inspectors general, local crime branch units and cyber police stations across Gujarat.

Investigators analysed data obtained from the Indian Cyber Crime Coordination Centre (I4C), the National Cyber Crime Reporting Portal (NCRP), the Coordination Portal and the 1930 cyber fraud helpline. Special nodal officers were appointed in districts to coordinate field investigations, while banks were directed to facilitate real-time data sharing.

As part of the operation, police registered 565 FIRs and arrested 638 individuals. Action was taken against 913 mule accounts, while investigators linked the accounts to 4,052 cybercrime cases, including 491 reported in Gujarat.

Authorities estimated that the total value of economic fraud uncovered during the operation stood at ₹2,289 crore.

Officials said the crackdown had also resulted in a significant decline in suspicious banking transactions.

According to data released by the state government, cheque withdrawals linked to mule account activities fell by around 80%, with monthly withdrawals dropping from ₹126 crore to ₹25 crore. The number of first-layer mule accounts, accounts that initially receive fraudulent funds, declined by 30% between August and December 2025.

ATM withdrawals associated with such accounts also recorded a 66% reduction between September and December 2025.

To strengthen future monitoring, the banking sector is preparing to deploy an artificial intelligence-based risk scoring system under guidelines issued by the Reserve Bank of India.

The system, being developed by the Indian Digital Payment Intelligence Platform, will classify transactions as low, medium or high risk, enabling banks to identify suspicious accounts and take preventive action more quickly.

Officials said a dedicated information-sharing platform, known as Mulehunter.ai, has also been established to facilitate the exchange of intelligence on suspicious accounts among banks.

The state government said the operation forms part of broader efforts to tackle cybercrime amid India's rapidly expanding digital economy.

Authorities noted that the number of internet users in India has grown significantly over the past decade, alongside a sharp increase in digital payments and UPI transactions, making cybercrime prevention an increasingly important priority for law enforcement agencies.