Rajasthan grapples with exploding mule accounts in cyber fraud
Rajasthan police report tens of thousands of regular bank accounts used as mule accounts for cyber fraud, with over 82,000 identified in the first seven months of 2026. Authorities cite widespread manipulation, including a notable case in Dungarpur involving hundreds of mule accounts and cross-borde
Key takeaways
- Rajasthan police identified 82,407 mule accounts from Jan 1 to Jul 12, 2026.
- 723 cases were registered and 657 people arrested in that period.
- A notable Dungarpur case involved around 450 mule accounts and about ₹160 crore in suspected fraud.
What Happened
Rajasthan’s cyber police say there is a rising use of ordinary bank accounts as mule accounts to route or receive funds tied to cyber fraud. Data from the Rajasthan Police headquarters covering January 1 to July 12, 2026 shows 82,407 mule accounts identified across the state. In the same period, 723 cases were registered, 657 people were arrested, and 11,633 mule accounts were subjected to action. A state-wide operation was conducted to address the issue.
In a separate case cited by the police, the Dungarpur district uncovered a network involving around 450 mule accounts and suspected cyber fraud transactions worth about ₹160 crore. Investigators described how vulnerable individuals, including poor labourers and college students, were recruited to open bank accounts under various pretexts and then handed over to cybercrime networks. A bank employee was accused of helping the gang gain the trust of account holders. The accounts opened across multiple banks were used to receive funds from frauds in stock markets, cryptocurrency and betting, with the money routed through Telegram and later withdrawn via ATMs and cheques, with commissions shared among group members. One accused, Ghanshyam Kalal, allegedly operated 150–200 mule accounts, having operated from Dubai and entering India via Nepal before arrest.
Locally, Barmer district reports indicate a higher prevalence of mule accounts compared with some other areas of the state. In 2026, Barmer registered 10 FIRs related to mule account activity, with some arrested individuals linked to this pattern of crime.
Why It Matters
Officials say the mule account model complicates investigations because the first account in a fraud network may only be a link to a larger operation. Tracing funds requires following multiple accounts and transactions, often across banks and borders. The scale highlighted by the Dungarpur case demonstrates how cybercrime networks can extend beyond a single district and engage in cross-border coordination and complex money movements.
Background
Rajasthan’s cyber cell has identified this pattern as a growing challenge, noting that some individuals surrender their account details under naivety or financial need, while others participate more knowingly. Offenders are charged under provisions of the Information Technology (Amendment) Act, 2008, and related sections of the Bharatiya Nyaya Sanhita, 2023. The issue has prompted a special statewide operation aimed at disrupting mule-account networks and the broader cybercrime ecosystem.
Key Facts
- 82,407 mule accounts identified in Rajasthan between January 1 and July 12, 2026.
- 723 cases registered, 657 people arrested, 11,633 mule accounts acted upon in the same period.
- A Dungarpur case involved around 450 mule accounts and about ₹160 crore in suspected fraud transactions.
- Ghanshyam Kalal allegedly operated 150–200 mule accounts and had links to operations from Dubai; he entered India through Nepal before arrest.
- Barmer district registered 10 mule-account-related FIRs in 2026; some arrestees linked to mule accounts.
What Happens Next
Authorities say tracing money trails remains a logistical challenge due to the multi-account nature of the networks and cross-border links. The statewide operation is ongoing, and investigations continue to identify and prosecute individuals who provide or exploit mule accounts, as well as those at the operational end of the fraud networks.
Sources reviewed
Project Chintan independently synthesized and analyzed information cross-checked across the sources listed above.
