Cyber Fraud Network Busted: Five Arrested for Opening Bank Accounts in Students’ Names

Gadag: Authorities in Karnataka have dismantled a cyber fraud network accused of exploiting students by opening bank accounts in their names and using them to channel illicit funds. Five individuals have been arrested in connection with the case, police confirmed.

The operation, uncovered in Gadag district, involved the seizure of 11 mobile phones and eight “bank kits,” including passbooks, ATM cards, SIM cards, and online banking credentials.

Students Targeted With Scholarship Promise

Investigators revealed that the accused allegedly targeted students by offering assistance in securing government scholarships. Under this pretext, they persuaded students—particularly those staying in hostels—to open bank accounts.

Once the accounts were created, the suspects reportedly took control of all associated banking materials, including login details and SIM cards, effectively gaining full access.

Small Deposits Used to Build Trust

To avoid suspicion, the accused allegedly deposited around ₹2,000 into each account during the setup phase. This initial transaction was used to create legitimacy and reassure victims before the accounts were misused.

Police believe these accounts were later used as “mule accounts” to route money obtained from cyber fraud operations conducted across multiple regions.

Arrests Made During Goa Operation

The investigation began earlier this month and quickly led authorities to track the suspects’ movements to Goa. Police intercepted the group while they were allegedly attempting to hand over collected bank kits to other members of the network.

The main accused—identified as Raja (23) and Vakdoth Vakeel (24)—are residents of the Vijayanagara district. During interrogation, they reportedly admitted to coordinating with other associates for commission-based transactions.

Additional Suspects and Seizures

Further arrests included individuals working and residing in Goa, such as a hotel employee and a DJ. Authorities also seized multiple bank kits linked to accounts opened in different districts, including Haveri and Gadag, primarily in branches of Bank of Maharashtra.

One key suspect remains absconding, and efforts are ongoing to track additional members of the network.

Larger Network Under Investigation

Officials suspect the operation may be part of a wider, multi-state cybercrime network. Forensic analysis of seized devices and bank transactions is underway to determine the scale of the fraud and identify links to other cases.

Cybersecurity experts note that the use of mule accounts has become a widespread tactic in financial fraud schemes. By using accounts opened in the names of unsuspecting individuals, criminals can obscure money trails and evade detection.

Rising Concern Over Student Exploitation

The case highlights a growing trend where students and vulnerable individuals are manipulated into unknowingly participating in financial crimes. Authorities have urged the public to remain cautious and avoid sharing banking details or opening accounts on behalf of others without full understanding.

Investigations are ongoing, and more arrests are expected as police continue to unravel the network.