Mule Accounts Shift: Criminals Move Financial Fraud to New Areas as Agencies Intensify Crackdown

Overview

Financial criminals are increasingly using 'mule accounts' for money laundering, shifting operations from known hotspots like Jamtara and Nuh to quieter regions across India, including Madhya Pradesh, Karnataka, and Assam. Banks have frozen approximately 850,000 such accounts nationwide as authorities, including the Reserve Bank of India, are enhancing coordination and strengthening Know Your Customer (KYC) checks to combat rising cybercrime.