The increasing use of regular bank accounts as “mule accounts” is proving to be a major challenge for Rajasthan’s cyber police. Officers dealing with the menace have identified tens of thousands of accounts being used to route or receive money linked to cyber fraud.

According to statewide data provided by the Rajasthan Police headquarters, between January 1 and July 12, 2026, as many as 82,407 mule accounts were identified across the state.

During the same period, police registered 723 cases, arrested 657 people and initiated action against 11,633 mule accounts. A special operation was conducted across Rajasthan to tackle the problem.

The problem, however, is not limited to organised cybercriminals.

Rajasthan cyber cell DIG Shantanu Kumar told that in many cases, people hand over their account details to be used for cybercrime out of naivety or because they need money, while in some cases they do so willingly.

“People who may not be directly involved in committing cyber fraud have willingly handed over their bank accounts to fraudsters in return for money. After they are caught, these people are charged with conspiracy in the crime,” said Shantanu.

Offenders are charged under Section 66D of the Information Technology (Amendment) Act, 2008, and Sections 61(2), 318(4) and 319(2) of the Bharatiya Nyaya Sanhita (BNS), 2023.

The practice has created an additional challenge for investigators because the first account identified in a fraudulent transaction may belong to a person who is only a link in a much larger network. Tracing the money trail from such accounts to the operators behind the fraud often requires examining multiple bank accounts and transactions.

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The scale of the problem has also been highlighted by a recent Dungarpur cyber fraud case, in which police uncovered a network involving around 450 mule accounts and suspected cyber fraud transactions worth approximately ₹160 crore.

Dungarpur Superintendent of Police Manish Kumar told that while investigating the mule account problem in the district, police found that poor labourers and college students were allegedly persuaded to open bank accounts on the pretext of government schemes, free PAN cards, scholarships and loans. The accounts were then allegedly handed over to members of the cybercrime network.

“A bank employee, Kaushal Prajapat, allegedly helped the gang gain the trust of account holders. After the accounts were opened, the accused allegedly took possession of passbooks, cheque books, debit cards and internet-banking credentials. The accounts were opened in several banks and their details were allegedly passed on to cyber-fraud operators in Dubai and Kuwait. The accounts were then used to receive money cheated from victims across India through stock-market, cryptocurrency and betting-related frauds, with the operations coordinated through Telegram.”

The money was allegedly withdrawn through ATMs and cheques, sometimes with the help of bank employees, and commissions were distributed among the gang members.

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One accused, Ghanshyam Kalal, allegedly admitted to operating 150-200 mule accounts. Police said he had been operating from Dubai and entered India through Nepal before his arrest.

The emergence of such a case in a place like Dungarpur, which is not known for this kind of crime, has surprised the police administration and highlighted the reach of cybercriminal networks.

In Barmer district, compared with other parts of Rajasthan, people are not generally involved in directly committing cyber fraud, but the mule account problem is prevalent.

ASI Ramji Ram of the Cyber Police Station in Barmer said, “We have registered 10 FIRs in 2026 for mule accounts. Individuals arrested were presented in court and then released on bail. People are not directly involved in proactively committing cyber fraud in Barmer, but they have given their accounts on lease. Agents travel from Udaipur, Jaipur and even from other states to Barmer to collect the account details and documents from these people in lieu of ₹8,000 to ₹10,000. Some people received their account documents back after a while, but others did not. We are actively trying to make people aware about these agents.”

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Police are increasingly focusing on account holders as well as the operators behind the networks. While some account holders may be victims or may have been misled, investigators are also finding cases where people knowingly provide their accounts in exchange for money.