In a major crackdown on cyber-enabled financial crime, the East Kutch Police have uncovered an extensive fraud network involving more than 100 suspected mule bank accounts linked to transactions worth approximately ₹44 crore. The operation, carried out under the Gujarat government’s “Operation Mule Hunt 2.0” initiative, has resulted in the arrest of four alleged members of an interstate cybercrime syndicate.

Authorities said investigations are ongoing to apprehend four additional suspects believed to be connected to the network.

Intelligence-Led Operation Targets Organized Cybercrime

The investigation began after the Cyber Crime Police Station in East Kutch received actionable intelligence regarding suspicious financial activities. Law enforcement teams combined technical surveillance with human intelligence to identify individuals allegedly involved in facilitating cyber fraud transactions.

East Kutch Superintendent of Police Sagar Bagmar stated that the operation forms part of a broader statewide effort to dismantle criminal networks that use banking channels to move illicit funds generated through online scams.

Based on the gathered intelligence, police teams conducted targeted raids that led to multiple arrests and the seizure of crucial digital evidence.

Financial Records Reveal Large-Scale Fraud Activity

During the investigation, officials reportedly recovered extensive financial data that exposed the scale of the alleged operation.

According to preliminary findings, the network controlled or had access to nearly 105 mule accounts used to receive and transfer money obtained through cyber fraud schemes. Transaction records examined by investigators indicate that approximately ₹44 crore moved through these accounts over a period of time.

Police suspect the accounts were used to conceal the origins of illegally obtained funds and distribute proceeds among members of the criminal network.

Authorities believe victims of the fraud may be spread across several Indian states, suggesting that the operation had a nationwide reach.

Possible International Links Under Examination

Investigators have also identified indications of possible cross-border connections linked to the network. Early analysis of digital evidence suggests that certain activities and transaction trails may have connections to Sri Lanka.

Officials clarified that these international links are still being verified and remain part of the ongoing investigation. Cybercrime experts are examining financial and communication records to determine whether foreign actors were involved in the operation.

Four Arrested, Search Continues for Others

Police have registered a case under relevant provisions of the Bharatiya Nyaya Sanhita (BNS) and the Information Technology Act.

While four suspects have been taken into custody, authorities are actively searching for four additional accused who are believed to have played key roles in the fraud network. Investigators are also analyzing seized electronic devices, bank records, and transaction histories to identify more individuals connected to the operation.

Operation Mule Hunt 2.0 Gains Momentum

The latest action highlights the growing focus of law enforcement agencies on dismantling mule account networks, which have become a critical component of modern cybercrime operations. Such accounts are frequently used to transfer, disguise, and withdraw funds generated through phishing scams, investment frauds, online impersonation schemes, and other digital crimes.

Officials said further arrests and financial recoveries are possible as the investigation progresses. The operation is expected to provide valuable intelligence on how organized cybercriminal groups exploit banking systems to facilitate large-scale fraud.

The case marks one of the most significant cybercrime crackdowns in Gujarat this year and underscores the increasing efforts by authorities to combat financial crimes in the digital era.

Mumbai Police have arrested a former employee of a private insurance company and his alleged accomplice in connection with a sophisticated fraud scheme that reportedly used customers’ personal information to obtain unauthorized online loans worth ₹24 lakh.

Investigators allege that sensitive policyholder data was misused to manipulate account details, secure loan approvals, and divert funds into mule bank accounts without the knowledge of the affected customers.

Complaint From Customer Triggered Internal Investigation

The alleged fraud came to light after a policyholder from Gurugram alerted the insurance company about unexpected SMS notifications relating to a loan application that he claimed he had never requested.

Following the complaint, the company’s internal fraud detection team launched an investigation and discovered suspicious activities linked to two employees who had recently interacted with the customer.

According to investigators, the employees had visited the policyholder’s residence under the pretext of assisting with insurance-related services and reportedly gained temporary access to his mobile phone during the process. Authorities later found that a loan had been sanctioned in the customer’s name without his authorization.

Multiple Customers Allegedly Targeted

As the inquiry expanded, investigators uncovered evidence suggesting that the fraud was not limited to a single victim.

Police said at least 15 loans were allegedly processed using customer identities and personal information. The accused are suspected of obtaining one-time passwords (OTPs) from policyholders, generating security credentials, and modifying registered mobile numbers, email addresses, and bank account details within the company’s system.

Officials believe these alterations enabled the accused to take control of customer profiles and redirect loan disbursements to accounts under their control.

Investigators further allege that after modifying account information, the accused successfully convinced internal systems that the new details were legitimate, allowing loan amounts to be transferred without raising immediate red flags.

Funds Routed Through Mule Accounts

According to police, the fraud proceeds were funneled through a network of mule accounts designed to conceal the destination of the funds.

Authorities suspect that the operation relied on carefully coordinated financial channels to move and withdraw the money after loan approvals were obtained. The alleged scheme caused financial losses estimated at approximately ₹24 lakh.

Investigators are now examining transaction records to determine whether additional accounts or individuals were involved in the movement of funds.

Arrests Made, One Accused Still Missing

Following a formal complaint, the West Cyber Police Station in Mumbai registered a criminal case and launched a detailed investigation.

Police arrested former employee Imran Khan along with Pulkit Sharma, who is alleged to have arranged bank accounts used for receiving the fraud proceeds. Both were brought to Mumbai after being detained outside the city.

During the operation, officers reportedly seized three mobile phones, six cheque books, and two bank passbooks that are believed to be connected to the case.

Meanwhile, another accused, identified as Anjali Rani, remains absconding. Law enforcement agencies have launched efforts to trace her whereabouts and determine her exact role in the alleged fraud.

Investigation Expands Into Wider Network

Cybercrime investigators are continuing to analyze digital evidence, financial transactions, and customer records to establish the full scale of the operation.

Officials have not ruled out the possibility that additional individuals may have participated in the scheme or facilitated the creation of mule accounts used to transfer the funds.

The case highlights growing concerns over insider threats in financial and insurance institutions, where access to customer information can be exploited to commit sophisticated digital fraud.

Authorities have urged consumers to remain cautious when sharing personal information and to immediately report any suspicious financial activity linked to their accounts.

A Delhi court has refused to grant bail to an accused arrested in connection with an alleged cyber fraud case involving financial losses of more than ₹52 lakh. The court observed that the investigation is still ongoing and noted discrepancies regarding the identity of the actual victim in the case.

The matter, being investigated by the Delhi Police Special Cell, involves allegations of online financial fraud allegedly facilitated through digital interactions that developed into a relationship of trust before substantial sums of money were transferred.

Court Questions Identity of Actual Victim

While hearing the bail application of accused Deepak Vats, the court examined records presented by investigators and highlighted that the complainant named in the First Information Report (FIR) may not have been the individual who suffered the primary financial loss.

According to the court’s observations, most of the disputed transactions were traced to bank accounts belonging to a judicial officer from Haryana. The court noted that the complainant, identified as Diksha Devi, did not appear to have made any significant digital payments related to the alleged fraud.

Based on the financial records reviewed during the proceedings, the court indicated that the judicial officer appeared to be the person directly affected by the monetary losses.

Bail Denied Amid Ongoing Investigation

The accused, arrested in February 2026, sought release on bail, arguing that the evidence collected so far did not justify continued custody.

However, the court rejected the plea, citing the seriousness of the allegations and the need for investigators to complete a detailed examination of the financial trail, digital communications, and other electronic evidence.

The judge emphasized that determining the exact movement of funds and identifying the true victim are essential aspects of the investigation and remain under scrutiny.

Digital Communications Under Examination

According to investigators, the case originated through online interactions that gradually evolved into a relationship built on trust. Prosecutors allege that these communications ultimately influenced the transfer of substantial amounts of money through multiple transactions.

During the bail hearing, the defence relied on selected WhatsApp conversations to support its arguments. The court, however, found that the messages presented did not provide a complete context of the interactions between the parties.

The court observed that isolated or one-sided digital communications could not be treated as conclusive evidence at the current stage of proceedings and were insufficient grounds for granting bail.

Authorities Probe Wider Cybercrime Angle

The Delhi Police Special Cell is continuing to analyze banking records, mobile data, electronic communications, and transaction histories to establish the complete sequence of events.

Investigators are also examining whether additional individuals may have participated in the alleged fraud and whether the case forms part of a larger cybercrime network operating through social engineering tactics.

Officials stated that further findings will emerge as forensic analysis of digital evidence progresses.

Growing Concern Over Online Trust-Based Scams

The case has once again drawn attention to the increasing use of social engineering techniques in cyber-enabled financial crimes. Fraudsters often exploit personal relationships established through digital platforms to gain victims’ confidence before requesting or inducing financial transfers.

Cybersecurity experts have repeatedly warned users to verify identities carefully and remain cautious when discussing financial matters with individuals known primarily through online interactions.

With the bail application rejected, legal proceedings against the accused will continue while investigators gather additional evidence. The outcome of the ongoing probe is expected to play a crucial role in determining the next phase.