Cyber police caution people against ‘money mule’ traps

The Hyderabad Cyber Crime Police have issued a public advisory explaining the reasons behind the freezing of bank accounts in cybercrime cases and cautioning citizens against allowing fraudsters to misuse their accounts for illegal transactions.

According to the advisory, bank accounts are often frozen when cyber fraudsters gain control of them under the pretext of offering business loans or investment opportunities and use them to route proceeds of online scams. Accounts may also be frozen when they are used, knowingly or unknowingly, to receive illegal funds linked to cryptocurrency transactions, online betting, gaming platforms, fake investment applications or unauthorised instant loan apps.

The police cautioned that business owners and traders could face account freezes if they fail to verify the identity of buyers or the source of funds used for payments, especially when the money is later found to be linked to cybercrime cases. Receiving money from unknown persons, officials said, is another common trigger for account freezes, as such funds are often traced back to fraud.

The advisory also highlighted the serious legal consequences of “selling” or lending bank accounts to cybercriminals. Fraudsters frequently target students, unemployed youth, drivers and daily wage workers, promising easy income in return for access to bank accounts. Such individuals are treated as “money mules” under the law and can face arrest and prosecution, even if they claim ignorance of the crimes committed using their accounts.

Police said account holders are legally responsible for all transactions carried out through their accounts and that ignorance is not a valid defence. Once an account is flagged in cybercrime investigations, it can have long-term consequences, including damage to credit scores and complications in obtaining loans, jobs or travel documents.

For those whose accounts have already been frozen, the cyber police advised approaching the concerned bank branch to identify the police authority that ordered the freeze. If multiple agencies are involved, account holders must contact each of them, submit the required documents and follow the prescribed procedure for unfreezing. Only after all concerned authorities issue unfreeze notices will banks restore normal operations.

The police also urged citizens to close unused or dormant accounts, monitor transactions closely and report suspicious activity immediately. Anyone approached for bank account details or misuse has been asked to contact the cybercrime helpline 1930 or report the matter through the national cybercrime portal.

The advisory was issued by Deputy Commissioner of Police (Cyber Crimes), Hyderabad, V. Aravind Babu, as part of efforts to raise awareness and prevent citizens from becoming unwitting participants in cyber fraud.