Fraudsters in Dubai and Georgia Operated Large-Scale Cybercrime Network Using Temporary Indian Bank Accounts to Evade Detection and Launder Funds from Digital Investment Schemes

Indian authorities have dismantled a complex cyber fraud network that laundered over ₹160 crore through domestic bank accounts. The operation, codenamed Cyber Hunt, was led by the Dungarpur police with support from local special teams and cybercrime units. Investigators uncovered nearly 450 accounts in Rajasthan used to funnel proceeds from digital investment scams, impersonation fraud, and other online financial crimes, echoing schemes seen in prior incidents such as CID’s crackdown on cloned foreign investment platforms in Bangladesh.

Criminals operated remotely from Dubai and Georgia while relying entirely on Indian banking infrastructure. The accounts functioned as “temporary pipes,” allowing rapid fund transfers across multiple layers to evade detection.

Key Arrests Highlight Network Scope

Authorities arrested Kaushal Kumhar at a wedding in Gujarat and later apprehended associate Ilesh Patel in Rajasthan. Investigations revealed that hundreds of accounts were opened under false promises, targeting students, unemployed youth, and daily-wage workers. ATM cards and cheque books were never issued, leaving account holders unaware that their accounts were being exploited. Funds were traced to overseas controllers, routed through domestic banks, digital wallets, and intermediaries, showing parallels to past money-laundering operations reported in Japan where fraudulent bank accounts were used to move illicit funds.

Growing Threat of Mule Accounts

Experts note that such mule-account networks are central to large-scale cybercrime. Insider access and weak oversight allow criminals to scale operations rapidly, similar to patterns observed in Malaysia where account misuse supports transnational scam syndicates. Fraudsters exploit systemic gaps to make transactions appear routine, complicating detection by banks and regulators.

BrokersView Warns You

public are advised to verify accounts are being opened in their name, never share personal identity documents with unknown agents, and monitor transactions for unusual activity. Immediate reporting to law enforcement or banks can help trace illicit funds and prevent further misuse. Vigilance remains crucial as the investigation expands to include additional banking staff, fintech intermediaries, and potential international collaborators, with more arrests expected.